Externalities and Capitalism’s Inefficiencies_on Economic Update
Externalities and Capitalism’s Inefficiencies
_on ECONOMIC UPDATE with Richard D. Wolff
This program introduces the economic concept of “externalities.” Those are the real costs of employers’ business decisions that employers do not pay for or take into account: costs “external” to businesses’ profit/loss calculations. Examples include costly damage to the environment, to employees’ private lives, etc. Those real social costs are external and additional to capitalists’ private costs. Therefore, capitalists’ investment decisions based on comparing costs and revenues do NOT take into account the real, external costs. Thus their decisions are not “efficient.” Capitalism never was the efficient system its apologists claim.
Each show wraps up with Professor Wolff answering some questions that he receives through his website or on Facebook. Economic Update is in partnership with Truthout.org.
This show was broadcast on January 13, 2021.
