famousringo said:
Examples of externalities include things like pollution, bacteria which are increasingly resistant to antibiotics, depletion of common resources, and the long-term health impact of certain activities. Ideally, you can measure the financial cost of such externalities, divide that cost by the units of a good responsible for them, and apply a tax that perfectly balances those costs. Reality, of course, is harder than that. You know how a common complaint of the financial industry post-bailouts is that the rewards are privatized while the costs are socialized? A well-implemented tax can be a way to de-socialize the cost. Instead of the cost for a problem being shared by all, the cost is born by the manufacturers or consumers of the good which creates it. |
Thanks for this englightening, off-topic reply. None of this is relatable to a food tax unless you're advocating that there's a reason a government should be interfering in one's consumption of food?
If I want to eat nothing but Snickers, that's my prerogative.







