Monday, September 28, 2009

Krugman on basic econ of cap & trade

A nice follow-up to his last piece. Everyone should read this.


Anonymous said...

Overall this article seems to better explain why Krugman was so critical of Beck and Feldstein. By putting it in a graphing form and giving people a basic understanding, it allows people to get a better grasp for why exactly he supports this cap and trade. He basically explains quickly, what we learned over a few days of class.
-Ryan D

Eric Goss said...

Why are people who are in support of the cap and trade system pretending to be in support of it? They are not all really in support of it because once it leads to a policy conclusion that they dont like they deny the facts. This behavior is interesting to me, it reminds me that people will only support an idea if they reap 100 percent of the benefits from supporting it. Problem here though is that firms are not going to reap all the benefits. Polluters have to be regulated in order to preserve this fragile world that we live in. Polluters are going to have to pay a portion of the costs; they can not just opperate and make 3rd parties pay the costs of the firm. People need to develop stronger back bones and support what they really believe in