How Big Business Robs Us With “Externalities”

A lot of folks go around talking about the efficiency of corporations and businesses based on the size of their profit margins. They often cite this as evidence that these busyness people really know how to do things the right way. If only government could learn how to do the same.

Thing is, corporate leaders generate so much profit because the “market” has figured out how to get the “state”–or better the People–to pick up the tab on the most expensive costs that are tied to doing business.

Odds are you’ve never heard the phrase “negative externalities.” Corporations and their boards know all about them, but most Americans don’t understand even the concept.

A negative externality is a cost born by all of us that was produced by a private entity and then dumped on us – externalized from that business to us. Externalities reduce the costs of business for corporations, which in turn increase their profits, while the tab is picked up by you and me, the taxpayer, the worker, and/or the citizen.

via How Big Business Robs Us With “Externalities”.

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