Hamada Hideki
The 2019 coronary virus disease epidemic and its attachment damage continued to leave a series of destructive marks around the world.Millions of enterprises have been closed, and many of them have no actual possibilities for reopening.Millions of people have lost their jobs, millions of people do not have medical care, and some families suffer from unsafe food for the first time.Although the rich can use their savings to cross the difficulty, those laborers who are barely diverted are suffering from unimaginable suffering.
The popularity of crown disease also constitutes a problem that is almost impossible to solve.Most economists believe that the price mechanism will effectively and even distribute resources effectively and evenly, and competition will maximize national income.The key prerequisite for this inference is to assume that the activities of individual or enterprise will not directly affect the activities of other agents, unless the price signal indicates the scarcity of products in the market.
Economists refer to these influences as externalities, and are divided into External Economies and DiseConomies based on their enthusiasm or negativeness.These external effects hinder the effective allocation of resources.
Let's take the decision to wear a mask.If there is no crown disease, the supply and demand of masks reflects the efficiency and cost of production masks.Those who wear masks can avoid contact with harmful substances in the air, but they will also pay the price: inconvenient, discomfort to a certain degree, attractiveness that may lose appearance, and of course the price of masks.The market will balance the benefits and costs, and scarce resources will be fully utilized.
However, when an external effect of the crown disease epidemic exists, it will affect the benefits and costs of wearing masks.Today, the benefits brought by wearing masks are far more limited to those who wear masks.If the wearer is infected, the mask can prevent his friends from being infected with coronary virus.
On this issue, the market is in failure, because the benefits of wearing masks far exceed the individual's estimation of their own benefits.Therefore, the state and municipal government must intervene and force all residents to wear masks.
By requiring everyone to wear a mask instead of letting individuals choose freely, the community can better protect themselves and avoid the pain and severe damage caused by the epidemic of crown disease.I live in Connecticut, and the governor and its epidemic work group have made the correct response to control the spread of the virus.As far as the infection rate and mortality rate is concerned, Kangzhou has so far been one of the most successful states in the United States.In contrast, other (mainly states in the south) refused to listen to the opinions of scientists and medical experts, so they did not force the principles of wearing a mask or executing the on -site evacuation order and social distance guidance.
There are similar external effects or technology in the environmental field.If a company desires to set up a large amount of sewage or air pollutants, it does not pay the cost of damage caused by its discharge or emissions.Therefore, the number of these substances in the company far exceeds the appropriate quantity of comparative social costs and social benefits.
However, US President Trump's neglect and abolition of environmental regulations has promoted this behavior because it enables many companies to avoid the cost of incubation and further harm to society.Relaxing environmental control takes for granted that environmental regulations are designed to solve the external effects.
This reflects the common ideas of major Republicans such as Mitch McConnell, a majority party of Trump and the Senate.It reflects the lack of sympathy or empathy to others, especially those non -white groups and other marginalized groups. Many of them are tortured by poverty or disease, and they are all American citizens.We can only assume that Trump and the same kind are unable to accept that other people should also enjoy the same attention and respect like the members of the rich people in their wealthy people.
However, we can be inspired by the judge of the US tour and a honorary professor at Yale University School of Law.He and the late Nobel Prize winner Ronald Coase laid the foundation for cross -disciplinary legal and economic research methods.Karabreis emphasizes the importance of social justice and the serious impact of sudden income fluctuations on the parties of the accident, which is very similar to many people experienced by many people during the current period of crown disease.
In the Future of Law and Economics in the Future of Law and Economics, he explored a new method of incorporating external effects into consumption.He specifically pointed out that a legal system that reflects people's sympathy may help build a more fair society.
When too many leaders ignore the struggle and suffering of their compatriots, Karabreis's thoughts are particularly inspired and welcomed.Perhaps in the world of one of some people who only know how to pay attention to themselves and threatened everyone, in -depth research on Karabreis, and spreading his ideas among the decision makers, which is helpful to create a unity that is extremely needed in society.
Author Koichi Hamada is a honorary professor at Yale University, a special consultant of Japanese Prime Minister Shinzo Abe
English Title: Epidemics, Economics, and Externalities
Copyright: Project Syndicate, 2020
