There Are No Externalities | Rorshok Unisex Crewneck 100% Cotton T-Shirt

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Economics loves models. It sets up models to describe things. “Externalities” are things that are not in the model. So for example, if a chemical company makes chemicals and then p umps some dangerous byproduct into the river. That dangerous byproduct will be an externality. The model they set up in their balance sheet or their Profit and Loss statement simply ignores that since there is no price for it, it doesn’t cost them anything or make them any money. They consider it an externality. But the costs are very high for the the planet and people down river, employees and the company in the future. Because model away, but consider carefully what you designate as externalities, because in the real world, there are no externalities. Made from 100% ring-spun cotton Show more