There are no upcoming events right now.
Why not post one?
Recent Articles
- Justice for Indigenous Peoples is Long Overdueby Ryan McGreal, published June 30, 2021 in Commentary
(0 comments)
- Third-Party Election Advertising Ban About Silencing Workersby Chantal Mancini, published June 29, 2021 in Politics
(0 comments)
- Did Doug Ford Test the 'Great Barrington Declaration' on Ontarians?by Ryan McGreal, published June 29, 2021 in Special Report: COVID-19
(1 comment)
- An Update on Raise the Hammerby Ryan McGreal, published June 28, 2021 in Site Notes
(0 comments)
- Nestlé Selling North American Water Bottling to an Private Equity Firmby Doreen Nicoll, published February 23, 2021 in Healing Gaia
(0 comments)
- Jolley Old Sam Lawrenceby Sean Burak, published February 19, 2021 in Special Report: Cycling
(0 comments)
- Right-Wing Extremism is a Driving Force in Modern Conservatismby Ryan McGreal, published February 18, 2021 in Special Report: Extremism
(0 comments)
- Municipalities Need to Unite against Ford's Firehose of Land Use Changesby Michelle Silverton, published February 16, 2021 in Special Report
(0 comments)
- Challenging Doug Ford's Pandemic Narrativeby Ryan McGreal, published January 25, 2021 in Special Report: COVID-19
(1 comment)
- The Year 2020 Has Been a Wakeup Callby Michael Nabert, published December 31, 2020 in Special Report: COVID-19
(0 comments)
- The COVID-19 Marshmallow Experimentby Ryan McGreal, published December 22, 2020 in Special Report: COVID-19
(0 comments)
- All I Want for Christmas, 2020by Kevin Somers, published December 21, 2020 in Entertainment and Sports
(1 comment)
- Hamilton Shelters Remarkably COVID-19 Free Thanks to Innovative Testing Programby Jason Allen, published December 21, 2020 in Special Report: COVID-19
(0 comments)
- Province Rams Through Glass Factory in Stratfordby Doreen Nicoll, published December 21, 2020 in Healing Gaia
(0 comments)
- We Can Prevent Traffic Deaths if We Make Safety a Real Priorityby Ryan McGreal, published December 08, 2020 in Special Report: Walkable Streets
(5 comments)
- These Aren't 'Accidents', These Are Resultsby Tom Flood, published December 04, 2020 in Special Report: Walkable Streets
(1 comment)
- Conservation Conundrumby Paul Weinberg, published December 04, 2020 in Special Report
(0 comments)
- Defund Police Protest Threatens Fragile Ruling Classby Cameron Kroetsch, published December 03, 2020 in Special Report: Anti-Racism
(2 comments)
- Measuring the Potential of Biogas to Reduce GHG Emissionsby John Loukidelis and Thomas Cassidy, published November 23, 2020 in Special Report: Climate Change
(0 comments)
- Ontario Squanders Early Pandemic Sacrificeby Ryan McGreal, published November 18, 2020 in Special Report: COVID-19
(0 comments)
Article Archives
Blog Archives
Site Tools
Feeds
By arienc (registered) | Posted June 18, 2009 at 16:28:12
A Smith > Imagine you run a drug company that can extend people's lives 100 years. How much will people pay you for that drug? In this case, you want as many people to live as long as possible and have as many children as possible, so that your profits are as high as possible. Helping people live a healthy, enjoyable life is something they will pay you lots of money for and it's also good business.
Not necesssarily. The drug company will price that drug at the price which maximizes their profit, not the price which maximizes the welfare to the people who need it.
For example, lets say that a drug company comes up with a drug which is demanded by 1 million people to keep them alive and healthy.
If 10 people can afford to pay $10,000 per pill, 1,000 people can afford the drug at $1,000 per pill, and 500,000 people can afford the drug at $1 per pill, the drug company would (assuming little or no cost just to make it simple), offer the drug at $1,000 per pill, thereby maximizing their profit. The 999,000 who can't afford the pill...what happens to them? they aren't the drug company's "clients" so why would they care?
Self-interest and public interest go hand in hand. For those areas where individuals or groups' self-interest conflicts with the public interest, limited government (public) intervention is necessary.
A Smith >If government can't know the direct benefit of providing goods/services to the people who actually use them, how can it know the much more opaque secondary benefits. That's like saying I don't know how much money I have in my bank account, but I know I will be able to buy that new car I want.
I don't understand what this has to do with my comment? Do employers not benefit from the education that was provided by the public schools to their workforce? Do road users not benefit from easier commutes due to having fewer cars on the roads? They do not pay directly for these things, but they benefit from them. These are the externalities I was talking about.
In a fully private "user-pay" system such as you seem to advocate, these external benefits would be absent. These are benefits which make society richer - financially as well as in less tangible "quality of life". To me, a fully private ecomomy is equally tyrranical and just as inefficient as a fully public economy. There has to be a balance between the individual's role and society's role.
"First they built the road, then they built the town. That's why we're still driving around and around, and all we see. Are kids in buses. Longing to be free." - Wasted Hours, The Arcade Fire
Permalink | Context