Political Science 1020E Lecture Notes - Lecture 4: Distributive Justice, Animal Testing, Starbucks
23 Oct 2014
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Sale of some goods is prohibited (why gm doesn"t sell crack) Prices signal shortage and surplus (if there"s too much, price goes down, if there"s a shortage, price goes up) They produce things no one cares about, isn"t needed or cannot be sustained. The cost or benefit of producing these goods is externalized. The process of creating the product becomes a cost or benefit. Cost nothing to consumer, who would rather not have them. Working at mcdonalds, the externality is you should have a second job. Therefore they don"t have to pay their workers an appropriate wage. Goods with positive externalities, cost nothing to consumer, who wants them. The things we want to use but not want to pay for. Make it illegal (or more costly) to produce some goods with negative externalities. State provides public goods and taxes citizens to pay for them. London taxes drivers to encourage foot traffic. The original position (op) models of equality of concern.
