1. Please explain any value-added comments/ insight and questions you have to the discussion below.

This article from the Atlantic explains that the externalities of COVID has changed. Basic description of positive externality is something I do that affects someone positively and the opposite of that is negative externality. For example family gatherings had a lot of potential negative externalities: Testing was inefficient and hard to come by, few were vaccinated, and many were unaware of their vulnerability. When you are talking about this issue from a social standpoint the positives of gathering must be weighed as well.

Because covid has somewhat calmed downed and vaccines/tests are being distributed regularly the negative externalities of gathering have been lessened and the positive externalities such as better mental health have been able to flourish. Weighing the positive and negative externalities and the risk of the act you choose to do is key in deciding what action to take.

In my own paper which is on vandalism and graffiti one negative eternality of these choices is the people who do these acts are destroying public property and ruining areas with their decisions. One positive externality of legal graffiti is that it gives young adults the chance to express themselves creatively.

heatlantic.com/ideas/archive/2021/12/covid-restrictions-2021-omicron-externalities/621076/

2. Please explain any value-added comments/ insight and questions you have to the discussion below.

Mal (2023), in an article published by modern diplomacy news, discusses the concept of the capitalist market and how it is leading climate crisis that is threatening human well-being. The article illustrates that the primary goal of such a market is short-term benefits that lead to the development of negative externalities, such as the production of greenhouse gases that contribute to climate change. The environmental components, such as forests, are considered public goods as no one has full ownership (Mjmfoodie, 2011b). However, such right leads to market failures as private entities do not consider their impacts on public goods (University of Maryland, 2023b). A negative externality to the business leads to a loss in the long term if the relevant stakeholders do not instill correct measures (Mjmfoodie, 2011c). Climate change is an example of a negative externality (Shapiro et al., 2022). It leads to depleted resources, reduced well-being, and economic instability as more money is injected into correcting the negative impacts.

Externalities that negatively impact public goods are correctable through government impositions, such as increasing taxes depending on the level of emissions (University of Maryland, 2023a). Also, subsidies can work by promising to lower taxes for the companies that show improvement in environmental protection and correction of market failure (Mjmfoodie, 2011a). The primary aim is to have a sustainable balance between capitalist markets, the environment, and the social needs to enhance an economy focusing on short-term and long-term benefits.

Reflection

I learned through researching for the discussion task that a negative market externality impacts others or the environment. Also, it was evident that some externalities, such as the release of carbon dioxide, are detrimental as they are not captured in the production cost. Also, their qualifications are a problem. The knowledge gained will play a significant role in a job application as it will help develop sustainable strategies based on environmental, economic, and social needs.

Mal, R. (2023, January 26).Free-market capitalism and climate crisis. Modern Diplomacy.https://moderndiplomacy.eu/2023/01/27/free-market-capitalism-and-climate-crisis/

Mjmfoodie. (2011a). Episode 31: Market Failures [Video]. Youtube.https://www.youtube.com/watch?v=rJixtB0GluQ

Mjmfoodie. (2011b).Episode 33: Public Goods[Video]. YouTube.https://www.youtube.com/watch?v=mYtW1Ug7L_s

Mjmfoodie. (2011c). Episode 32: Externalities [Video]. Youtube.https://www.youtube.com/watch?v=yC5R9WPId0s

Shapiro, D., McDonald, D., & Greenlaw, S. A. (2022).Principles of Microeconomics(3rd ed.). Openstax.

University of Maryland Global Campus. (2023, January 23a).Public Choice Theory and the Economics of Taxation. Document posted in UMGC ECON 203 6386 online classroom, archived athttps://learn.umgc.edu

University of Maryland Global Campus. (2023, January 23b).Government and Market Failure. Document posted in UMGC ECON 203 6386 online classroom, archived athttps://learn.umgc.edu