Economics

Money’s only something you need in case you don’t die tomorrow – Carl Fox.

Ivo Welch

December 31, 2021

Self-Interest

 

Red Pill

💊

Free-Market Capitalism (Fmc)

(Really? Trump? GOP?)

Externalities

 

Public Goods / Externalities

Simplest form:

You Pay!

 

Share Expense

Free-Riding

gone fishing

Realistic Go-It-Alone Cc Fight

Hobbes’ Leviathan

Los Angeles Before Epa

Beijing Today

Utopian Government

 

Never compare idealized governments to realistic FMC!

   

Politics

 

Today, parties seem to be polarized capture coalitions.

The Ur Problem:

How about you run for office?

Constant Struggle

Right Questions

Want effective social, not more social.
Too libertarian communities always fail.

Ideal Government

 

Basic Example: 3 Firms, 2 Tech

A B C Welfare
CL $300 $400 $500
DT $290 $421 $600 $1,321

Dt= Dirty Tech $60

A B C Welfare
CL $300 $400 $500
DT $230 $361 $540 $1,240

$20/Externality, Free For All, &Nbsp;&Nbsp;&Nbsp;&Nbsp;&Nbsp;&Nbsp;&Nbsp;&Nbsp; In Equilibrium

A B C Welfare
CL $260 $380 $480
DT $230 $381 $560 1,201

Benevolent Dictatorship

A B C Welfare
CL $280 $380 Vrbtn
DT Vrbtn Vrbtn $580 $1,240

Green Dictatorship

A B C Welfare
CL $300 $400 $500
DT Vrbtn Vrbtn Vrbtn $1,200

Pigouvian Tax

A B C Welfare
CL a(A,B,C) b(A,B,C) c(A,B,C)
DT a’(A,B,C)-T b’(A,B,C)-T c’(A,B,C)-T ?

Workings

Pigouvian $40 Tax

A B C Welfare
CL $280 $380 $500
DT $210 $341 $540 $1,240

Real-World Advantage

Real-World Problems

 

Winners And Losers

Perhaps Worst Problem

Taxed subjects can move elsewhere!

 

 

Tiberius: It is the duty of a good shepherd to shear his sheep, not to skin them.

 

Worse here! The sheep still shit on you from over the fence and someone else will be getting the wool!

Economists Vs. Other Boffins

Change Of Subject

 

Economics of Cost and Scale

Diminishing Returns To Scale (Drs)

Drs: Co2 Reduction

 

Fixed Vs. Marginal Cost

 

 

Sunk Cost

 

(Sunk) Rdd Cost

Rdd Yikes

Economies Of Scale

Economics Of Delay

Optimization Problem

  1. Install Now , or

  2. Delay, Research and Develop?

 

Economics Of Innovation

Knowing whether it can work is often biggest problem.

Patent Protection

Patent Protection

Conclusion

This chapter laid groundwork to translate climate change problems and solutions into economic terms.