On Climate Change, Externalities, and Tariffs

Seymore is a midwest tool manufacturer, they also sell hickory tool handles It’s much better to pollute. From a business perspective that is. Coal is cheap, easy to use, and reliable. If the only factors are cost of getting the coal and turning it into kilowatts, coal wins. If it were left up to business majors we’d be burning a heck of a lot more coal. Fortunately, we don’t leave decisions about coal to guys looking at quarterly earnings. Coal gives off many pollutants that harm us via the air we breath etc, it also produces greenhouse gasses warming the planet. So we make laws and impose costs on coal. Pollution which used to be only a problem for people breathing became a problem for MBAs, a big problem. Global warming is an externality of producing electricity from coal. Fines that make coal much more expensive than solar are also an externality we impose on coal plants. We don’t like our kids getting asthma. Shifting manufacturing overseas is great for business. Things are ungodly cheap and businesses make huge profits. Recently I replaced a handle on my 10lb sledge and a splitting maul. One had broken, the other was falling off all the time due to being poorly fitted in the first place. I had to look high and low to find handles for those two tools. People don’t replace handles. A carpenter costs close to a hundred dollars an hour by the time you finish paying all the costs for comp, liability, downtime, overhead for the business, profit, etc. A new hammer is $30. Home depot doesn’t stock hammer handles, it costs more to have a guy replace his handle than to give him a new hammer. I buy a lot of Bosch when given the opportunity. Good […]

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