Gareth Morgan has taken time out of his hectic schedule of giving hand-jobs to dictators, running losing soccer teams and hating cats to write a good piece on bludging farmers in the NZ Herald.
âExternalityâ is just a flash way of Gareth saying âBludgingâ and any sensible right winger expects costs to fall on those who incur them, not on the rest of us. Not paying your true costs is clearly bludging no matter what the ratbags at Federated Farmers reckon.
We have what economists call an “externality” – where the actions of a producer create costs they don’t pay for but leave others to pick up the tab. Until those costs are sheeted back fully to producers, in this case the farmers, their personal profits will be inflated at society’s cost. And of course the higher the profits, the more new dairy farms get set up, making the problem worse. A circuit-breaker is needed.
A sensible âNO BLUDGINGâ Policy would solve a lot of these problems.
The lack of a decent regulatory regime is the reason bludging farmers keep bludging off society, so the real ratbags are politicians who incentivise bludging.Â Read more »