Tag: Costs

Externalities, Momentum, and the Cost of Inaction

Healthy Economies are based on Minimizing Costs, while Maximizing the Social Benefits.   Or at least they should be.

Yet our Corporate-driven Economic system, far too often focuses on Discounting the Costs, while Maximizing their Profits.   Profits for the enlightened owners, NOT for Society at large. Both the long-term and local Costs, generally get swept under the rug, in such a competitive landscape.

And that is a recipe for long-term Planetary Disaster.

Every economic transaction is some sort of trade-off between Cost vs Benefits.   Problems arise however, when most of those Costs (to the Planet and to Society) remain Hidden, just below the surface — completely “External” to any quick-hit P&L calculations and Statements.

The accurate Pricing of such “External” factors — both short-term and long-term — is KEY to whether or not, WE leave the world a better place than we found it.

“Externalities” have a way of creeping up on you, and “extracting payment”, sometimes when you least expect it.