Thursday, August 18, 2011

Milton Friedman would not approve of all these candidates who are anti-environmental protection. He taught that the cost of pollution must be included in the price of the fuel. Without including that cost in the price (i.e., externalizing that cost), the price would not accurately reflect the true cost of the product, and the price signals would lead to irrational investments. The free market cannot operate properly when the price signals are wrong. Where is a free market Republican to turn nowadays?

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