Externality Mitigation

There are certain sectors of our economy that are currently illegal or greatly curtailed by regulations.  They are trying to prohibit an activity that does harm.  Often these regulations or prohibitions do more harm than good.  The crime surrounding the evasion of the laws bring to affect others. 
When people break these laws they bring negative consequences to the society at large. There are two common ways to deal with these issues, to prohibit or to allow.  However, I propose a third way, opening up a wide variety of methods to deal with this issue.  All companies wanting to do activity that harms the person doing that activity or the general public, needs to have a certain rating on externality mitigation.
 First Competitive Regulatory Agencies and the Rating system would need to be in place.  The claim and evidence needs to be submitted to the rating system, that actions are harming the people in the transaction or society at large.  If the evidence is strong enough, people or business doing the transactions would have to pay for mitigation.  
Whether it is side effects of drugs, pollution, gambling, drinking, extreme sports, among others that negative externalities, programs would need to be funded such as A.A., gamblers anonymous, detox centers, or a medical fund to deal with injuries resulting from risky activity.  Each CRA would have to increase funding until a certain rating was achieved, thus motivating CRA’s to be very effective.     
Pollution and the environment can be more complicated, thus not conducive to government regulatory control.  Manufacturing, farming among other businesses all have negative side effects on the environment.  The balance of whether it is ‘worth it’ is very subjective.   Having food, manufactured goods among others enrich our lives greatly, however have an effect.     
Competing rating agencies will look at EPA issues VERY differently.  Everyone puts their trust, thus their power in a rating agency.  The combined ratings will be powerful in the marketplace because people will shun low EPA rated products.  However, there would still need to be a fund for negative externality mitigation with low rated businesses paying higher amounts.  This fund would help clean up the environment.    
This rating would be very dynamic because it is very difficult to determined counterfactuals in an ever changing landscape.  Governments could set different ratings however realizing too high of a rating could become counterproductive.  Many states would experiment with different levels of mandated rating levels and that would be rated as well. 
Many who drink or do drugs desire to alter their mood and feel ‘light headed and forgetful’ as to take away their emotion pain.  Right or wrong, the desire is there and laws do not stop this.  Currently the FDA does not allow drugs just for this purpose.  

With the demand for mind altering drugs so high there would be many who would compete in creating a certain drug that achieves the desired effects with the lowest negative side effects possible and without addictions.  The competition would allow for safer drugs to emerge.

However, a fund will be set up to treat people harmed.  The lowest rated business will have to pay larger percentages.  Gambling, pornography, prostitution and among others would all fall under CRA’s and would need high ratings of mitigating negative externalities.     



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    Bill Haley

      Bill Haley started Haley2024 in the spring of 2013 in an effort to his part in restoring freedom to America.


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