This is about us people. Or rather, about what we have got ourselves into.

Below is a view on what that is.

 

 

 

 

About underpricing

Underpricing here refers to prices of goods and services that are too low to reflect environmental and social costs caused in their making and use.

  • To correct for underpricing, prices can be raised by imposing new or higher taxes on product-services. This makes sense when generated revenues can be used to repair harm done related to production and consumption, to prevent further harm from happening or to support the research and development of better, alternative products and production processes.
    Note that higher prices of harmful / dangerous products and services may lead to a desired fall in demand for these product-services, but also to a fall in income of those benefitting from sales. These people might need to be financially compensated or supported otherwise. Higher prices may also imply that the products involved can be consumed only by the rich.
  • Question: given that the rich are responsible for the bulk of all greenhouse gas emissions due to their consumption, can you justify that the rich are taxed LESS than average?

 

About the Prisoner's dilemma

Imagine you are thrown in prison, you and several partners in crime, each in a separate cell, isolated.

The police wants you to confess and tell about everyone's role. The deal is a lower sentence.

You are sure that evidence is absent and that if nobody talks, everybody walks.
But if one or more take the deal, the others get the full sentence.

What are you going to do?

The point is... what if the deal offered to you as a free person is an underpriced plane ticket, fashion, electronics or other stuff you feel you need? 

What about the left-out part of their true cost - land and wage theft, climate change and more? What about that part of the cost being borne by others - people in developing countries, future generations?

What are you going to do?