tanqtonic
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RE: Question
(01-04-2018 03:23 PM)Frizzy Owl Wrote: (01-04-2018 02:57 PM)RiceLad15 Wrote: (01-04-2018 02:13 PM)tanqtonic Wrote: (01-04-2018 01:52 PM)Owl 69/70/75 Wrote: (01-04-2018 10:26 AM)RiceLad15 Wrote: I'm confused as to your point. If we are now in line with the rest of the industrialized world on corporate taxes, yet still far behind on worker protections, we shouldn't try to catch up on worker protections because of the estate tax and capital gains taxes?
And I fundamentally disagree with your last concept, if you're stating it as a binary function. If that were the case, all businesses would have stopped functioning upon the inception of the minimum wage bill, OSHA regulations, etc. Worker protections almost never make economic sense because they rarely are about increasing margins for the companies that employ said workers. However, we as a society had decided at one point, that maximizing business profits was not the be all, end all. However, if you're not looking at in from a binary perspective, I agree that there is a point at which you can pass where regulations, taxes, etc. can become so burdensome that it does not make sense to do business anymore. However, we are really far from that point.
Another question for you about environmental regulations. How do you think we as a society should handle the negative externalities of our industrial activities? To me, this is a perfect example of where regulations are needed to make sure that companies do not immediately push on these burdens to only those that are directly affected.
We agree on one thing. You’re confused. Or perhaps you are being intentionally obtuse and ignorant.
As for the externalities, the libertarian solution is simple. Create a robust private cause of action. You pollute my air or water, I sue you.
And your whole binary concept distorts my point. Many other countries have more robust worker protections and environmental regulations, but they have much more speedy and certain processes for implementing them. The trade off is you spend more to provide adequate protections, but you spend less time and money to litigate issues and obtain permits and the like, and your results are known with more certainty. Businesses gladly take that trade off. Corporate America and indeed corporate world will gladly pay more to get certainty. That is one thing that has hurt the EU, as national governments have ceded power to Brussels, it has become more cumbersome to get answers to regulatory questions.
Where it all comes to a head is here. I am going to make investment decisions based on risk and reward. The US has an advantage because of lower perceived risk. If we are competitive in other areas, investment and jobs will come here. If we are not, as long as demand exists then businesses will expand to fill it, but they will do so elsewhere. Look at all the factors—risk, lanbor costs, labor productivity, infrastructure, proximity to markets, proximity to sources of raw materials, taxes, tariffs and trade restrictions, among other factors. We have to win on at least some of those in order to attract investment and jobs. When the others pretty much offset, taxes are often the decider. I am not seeing where you see a binary question.
Next time try responding to what I write instead of making stuff up. Got it?
Owl#s, the problem with the externalities is that they typically affect the 'commons'. It is hard to distinguish 'your (air/water)' from 'my (air/water)'.
Easy to do with defined private property rights, even to the extent that pooling is now widely employed to deal with a 'commons' problem with the oil reservoirs not necessarily observing a set of 'metes and bounds', but even in that case 'metes and bounds' is necessary to define the extent of the reservoir and the appropriate mineral rights holders. And this is a perfect example of where (imo) a true libertarian approach and the 'governmentalist' approach each fail, and a good crucible for finding how each group can work with the other (again imo).
I will give some to the 'governmentalists' in terms of them expanding the issues of pollution and 'appropriation from the commons' to necessarily involving government action. One action that tends toward the middle of the inherent debate between libertarianism/true free market captitalism and those of 'government diktat'/command and control is the implementation of an artificial market on the commons in question. A good example are the markets for sulphur compound and nitrogen compound credits (i.e. emissions trading). That is a middle ground I can live with if done fairly and properly.
I am a big fan of markets such as these. They can be powerful tools to help deal with these sort of negative externalities, but I don't know why they have not become more popular in the US.
One of the issues is defining market boundaries within the US. Also, would such a system supercede or complement current regional regulatory limits, such as those in "non-attainment areas"?
I always thought you could deal with non-attainment areas much the way Austin is doing the Mopac express lane:
For Mopac, using the express lane is a base 25 cents. That toll goes up depending how stacked up that lane is. Last night headed to downtown at high rush hour and that lane zipped at 60 while Mopac was stop and go, but the toll was $5.65.
You could easily apply the same principle to emissions markets and non-attainment areas. In fact, it is the exact same issue of market based solution to regulating the use of a 'commons' -- but the 'commons' items are 'road lane' vs particulate.
Another wrinkle is the use of emissions standards that expire and have to re-
bought and the use of a shrinking pool of emissions standards.
As for supplementing or superceding regional issues, you are invoking at its base an underlying tension between sovereigns that is part and parcel of the structure of the Constitution.
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