How Markets Fail: Positive & Negative Externalities

[MTI250]

Imported goods should have a negative externality because they increase the trade deficit. Trade deficit decreases capital and hinders growth. Am i right?

[puniio]

 ringtone = negative externality

[dreamcastII]

Very good video. I think you must be a very liked lecturer

[cmakaioz]

@fran474747 ...

*asserting that benefits of free markets will obtain even when the basic conditions of free markets are not manifest;

*asserting that free markets will magically respond to externalities despite failure to reflect the full cost in the selling price, and the fact that individual buyers often don't consider social costs and benefits....

...is a kind of religious faith. It has no business in a rational discussion.

BrynJonesOnline is explaining, not advocating, in these videos.

[BrynJonesOnline]

kokopelli314: What governments produce varies from country to country depending on how much the government bekieves the free market can allocate resources efficiently and, very importantly, equitably. So, in some countries the government intervenes much less than in others; provision of health care would be one example

[kokopelli314]

Very clear, thanks

Any ideas on the products of governments?

[fran474747]

This is corportaist brainwashing. Markets adjust automatically, without regulation, and if there is congestion/pollution many of us already take action to reduce our driving or live in the country. Ricardo gave us these LAWS of demand and supply. This drivel can only upset the operation of markets as the govt/mafia seek to tax us without constraint for activities THEY deem to be a failure. Govt failure is the only real result of this, and meanwhile our prosperity is undermined.....

[BrynJonesOnline]

@fran474747 We'll have to agree to disagree on this! I think people often act in a totally selfish way, not considering their impact on others in society. As such, I se a role for Governments to intervene to modify their behaviour. An old fashioned, left wing view it may be, but I don't believe you can always leave markets to themselves.

[Francisco19031994]

@fran474747 U about congestion/pollution. well if in fact we do reduce our drivinh is due to advertisementes and brodcasts that are convincing us/ explaining us why we should reduce congestion/pollution. well no privet identity would informe the population of thoes problems since it would have nothing or verry litle to gain from it. if u actually are awear of that is partially responsable to governments. governments are the identity that would informe us to polute less. therefore they are needed

[fran474747]

This is corportaist brainwashing. Markets adjust automatically, without regulation, and if there is congestion/pollution many of us already take action to reduce our driving or live in the country. Ricardo gave us these LAWS of demand and supply. This drivel can only upset the operation of markets as the govt/mafia seek to tax us without constraint for activities THEY deem to be a failure. Govt failure is the only real result of this, and meanwhile our prosperity is undermined.....

[menece2society4u1]

thank you so much for these videos you're ace!!

[liambulmer]

i so wish you were my teacher! makes it all look so easy!!!

[selfrealizedexile]

that motivates centrally-planned economies and socialism -- the pretended ability for a man or group of individuals to fully comprehend the price system. History was not history because all socialists were evil. History was history because socialism is mechanically unworkable with reality. Why do you think there were so many black markets in the Soviet Union? It is what actually kept their country going for so long if you can believe it.

[selfrealizedexile]

not with the traders which is completely fine. Technically, there are innumerable externalities. Traders, gov'ts, economists, etc don't fully comprehend the ever-changing, instantaneous signals being sent through the price system. This isn't a "market failure," however, and you WILL NOT get a better result putting the matter in gov't's hands.

Anyone who has studied the painful history of gov't intervention knows this.

Externality taxation or regulation is motivated by the same thing

[selfrealizedexile]

I think it's misleading to call externalities a "market failure." The whole notion of a "market failure" is actually subjective. It should instead be labeled as a failure of traders to fully understand their full ripple effects. But, the market doesn't actually fail itself. The very same conditions that are affected by an externality are the very same conditions that will go on to determine costs of production, prices, and profits of a market. So there is accountability so to speak, just

[dave13111]

Excellent videos, although if possible can the camera remain in the same place? Sometimes it's hard to see what you're writing.

Nonetheless, your videos are an excellent resource and I would like to thank you for all of your help :). xx

[loverofbeats]

hey this is a great vid! thanks!

[MillionthUsername]

It's important for people to understand that this is NOT economics. This is statist central planning indoctrination.

People like this claim that a monopoly power which takes over society by force can somehow make superior choices vs the sum total of individuals who engage in voluntary and peaceful exchange.

Notice the complete inversion of ethics. A coercive monopoly is all-knowing, while free peaceful people engaged in providing goods and services to one another are somehow anti-social!

[MChav7]

Also, watch out for the boogy man.

[HankerKomo]

@MillionthUsername Obvious troll is obvious.

[selfrealizedexile]

@MillionthUsername

Couldn't agree more with you. Keynesians have been brainwashing college students for several decades. Anyone who studies the history of Keynesianism and John Maynard Keynes subsequent rejection of his General Theory understands why statist policies fail.

You won't hear that in econ 101 though; undergrad is remarkably watered down.

[ThePintsizeslasher]

BS. Just look at all the companies advocating their products are "green" and how much more people are willing to spend on them just to feel good about "helping the planet"

Hell, look at the success of Whole Foods.

There is no "social benefits."

Roads are subsidies for the automobile industry, and poorly planned/maintained and overused bc you don't pay for them directly

[lordjek]

There is too general notion of externalities. Many of "General Benefits" are aready embeded in information the consumer have. Consider all the "enviroment friendly" tags. The general tendency is to provide as amny information about positive externalities to consumers to encourage them to buy. So "not enough" is really normative term. It just an exuce for goverment ot cry "market failure!!!" and instead of voulantary subsidy by coonsumers to coerse taxation.

[AAAV92]

Did this guy get dropped on his head as a child?

[jazzer53]

Helpful vid. And the phone thing in the middle of lesson was really random and funny. Haha!

[ChrisM116s]

great, thanks!!

[ITP09]

Good work. Thankyou.

[trescoolxox]

Thankyou!

[yosmuc]

THX !!!!

[perfect54321]

korrisha why dont you produce your own video.. seeing as youve always got a comment to make a negative comment about someone else.

[rfvo]

It pisses me off when people dont turn their freaking phones off, anyways thanks for the video.

[mizts]

I totally disagree with you. The terms that he used are basic term that you need to know in this topic. Don't you take economics? Maybe that why you think that there alot of terms.

PS: I think that Sir Bryn Jones forgot about the shaded area of welfare lose and misallocation of resources. That will be a bonus point for essay :)

[Zakgirlsfarm]

Thank you, most helpful