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Arash Kolahi

@ArashKolahi

Left Economist. Writing a book on human nature, potential, fulfillment & society. Psychology, Parecon, Social Theory. Libertarian-Left. 🌹🏴

California, USA
Vrijeme pridruživanja: travanj 2019.

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    Arash Kolahi‏ @ArashKolahi 21. kol 2019.
    • Prijavi Tweet

    In one short thread, we will expose and debunk 5 of the biggest & most consequential lies regarding economic efficiency perpetuated by the right. 1/pic.twitter.com/DASVSPRZaw

    16:38 - 21. kol 2019.
    • 138 proslijeđenih tweetova
    • 270 oznaka „sviđa mi se”
    • Debra Shepherd ॐ OM Chomsky 🏴 IshmaelLives yoshimi chomskylover nic b George Finbar the poison for kuzco Christian Larsson
    18 replies 138 proslijeđenih tweetova 270 korisnika označava da im se sviđa
      1. Novi razgovor
      2. Arash Kolahi‏ @ArashKolahi 21. kol 2019.
        • Prijavi Tweet

        These lies are so often repeated and so vehemently held that even some on the left concede or repeat them. But as we will definitively show, they are nothing but illogical propaganda not based in either economic theory or reality. 2/

        17 proslijeđenih tweetova 73 korisnika označavaju da im se sviđa
        Prikaži ovu nit
      3. Arash Kolahi‏ @ArashKolahi 21. kol 2019.
        • Prijavi Tweet

        Because these 5 lies are so often used by the right to argue against leftist economic policies, it cannot be overstated how important it is for those of us on the left to be able to expose & debunk them for what they are: illogical propaganda. 3/

        1 reply 13 proslijeđenih tweetova 69 korisnika označava da im se sviđa
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      4. Arash Kolahi‏ @ArashKolahi 21. kol 2019.
        • Prijavi Tweet

        My hope is that with this thread anyone on the left, whether or not they studied economics, should be able to debunk these oft-repeated lies. 4/

        16 proslijeđenih tweetova 69 korisnika označava da im se sviđa
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      5. Arash Kolahi‏ @ArashKolahi 21. kol 2019.
        • Prijavi Tweet

        I strongly urge anyone who cares about the environment and progressive policies in general to take the time to read & understand the economic theories and arguments in this thread. 5/

        1 reply 16 proslijeđenih tweetova 65 korisnika označava da im se sviđa
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      6. Arash Kolahi‏ @ArashKolahi 21. kol 2019.
        • Prijavi Tweet

        Since these lies are used constantly against leftist policies such as environmental regulations, public education, Medicare for All, etc., investing a few minutes to understand the economic models that demonstrate the fallacies of these lies is a worthwhile endeavor. 6/

        1 reply 13 proslijeđenih tweetova 62 korisnika označavaju da im se sviđa
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      7. Arash Kolahi‏ @ArashKolahi 21. kol 2019.
        • Prijavi Tweet

        It is no exaggeration or hyperbole to say that coherently exposing and debunking these 5 lies is an important starting point to making positive changes that could save the human race & life on the planet. 7/

        1 reply 19 proslijeđenih tweetova 61 korisnik označava da mu se sviđa
        Prikaži ovu nit
      8. Arash Kolahi‏ @ArashKolahi 21. kol 2019.
        • Prijavi Tweet

        Economic efficiency, as we will prove, is the domain of the left, NOT the right. The right might speak of economic efficiency when arguing against left policies but they are either completely ignorant of basic economics or just blatantly trumpeting propaganda. 8/

        1 reply 18 proslijeđenih tweetova 63 korisnika označavaju da im se sviđa
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      9. Arash Kolahi‏ @ArashKolahi 21. kol 2019.
        • Prijavi Tweet

        As we will see, it is actually the left who holds the logical, moral & ethical high ground in terms of economic efficiency and environmental sustainability. But first we must first begin by defining our basic terms: 9/

        1 reply 15 proslijeđenih tweetova 57 korisnika označava da im se sviđa
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      10. Arash Kolahi‏ @ArashKolahi 21. kol 2019.
        • Prijavi Tweet

        Economics is the study of the production, consumption & allocation of goods & services and the disposal of wastes & by-products within a society. Economic Efficiency means accomplishing the above economic functions optimally while minimizing waste of precious resources. 10/

        14 proslijeđenih tweetova 52 korisnika označavaju da im se sviđa
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      11. Arash Kolahi‏ @ArashKolahi 21. kol 2019.
        • Prijavi Tweet

        To best understand and debunk these lies we will use two economic models: 11/

        1 reply 9 proslijeđenih tweetova 46 korisnika označava da im se sviđa
        Prikaži ovu nit
      12. Arash Kolahi‏ @ArashKolahi 21. kol 2019.
        • Prijavi Tweet

        Widget A Model: To produce 1 unit of Widget A it costs the manufacturer $0.50 of resources & materials and $0.50 of labor for a total cost of $1.00 per unit. 12/

        1 reply 10 proslijeđenih tweetova 45 korisnika označava da im se sviđa
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      13. Arash Kolahi‏ @ArashKolahi 21. kol 2019.
        • Prijavi Tweet

        However, the production of Widget A entails emissions that result in $1.00 per unit of environmental damage to the neighboring community. Another $1.00 per unit of damage is caused when manufacturing by-products are dumped into local environmental 'sinks'. 13/

        10 proslijeđenih tweetova 45 korisnika označava da im se sviđa
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      14. Arash Kolahi‏ @ArashKolahi 21. kol 2019.
        • Prijavi Tweet

        Manufacturing Widget A also causes respiratory health problems for its workers, resulting in $1.00 of costs per unit incurred either by the worker or society, but not the manufacturer. 14/

        1 reply 11 proslijeđenih tweetova 46 korisnika označava da im se sviđa
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      15. Arash Kolahi‏ @ArashKolahi 21. kol 2019.
        • Prijavi Tweet

        Finally, after consumers complete their utility of Widget A, disposal of Widget A results in toxic seepage into the earth and water supplies causing another $1.00 per unit of social and environmental costs. 15/

        1 reply 10 proslijeđenih tweetova 46 korisnika označava da im se sviđa
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      16. Arash Kolahi‏ @ArashKolahi 21. kol 2019.
        • Prijavi Tweet

        So while the cost incurred by the manufacturer for producing 1 unit of Widget A is only $1, the true social & environmental cost of producing 1 unit is 1+1+1+1+1 = $5. 16/

        11 proslijeđenih tweetova 50 korisnika označava da im se sviđa
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      17. Arash Kolahi‏ @ArashKolahi 21. kol 2019.
        • Prijavi Tweet

        Economists call the $4 of costs not incurred by the manufacturer or consumer of Widget A as an 'externality'. And because in this model it's a burden rather than a benefit, it's called a 'negative externality'. 17/

        10 proslijeđenih tweetova 51 korisnik označava da mu se sviđa
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      18. Arash Kolahi‏ @ArashKolahi 21. kol 2019.
        • Prijavi Tweet

        Prices of goods and services act as a source of information to economic actors to help gauge the true social cost of that good or service. When the price is relatively high, less is consumed & produced. When the price is relatively low, more is consumed and produced. 18/

        1 reply 10 proslijeđenih tweetova 47 korisnika označava da im se sviđa
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      19. Arash Kolahi‏ @ArashKolahi 21. kol 2019.
        • Prijavi Tweet

        In our model of Widget A, the true social cost is $5 however the actual cost incurred by the manufacturer is only $1.00. let's assume the manufacturer sells Widget A for $2 ($1 profit). 19/

        1 reply 11 proslijeđenih tweetova 47 korisnika označava da im se sviđa
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      20. Arash Kolahi‏ @ArashKolahi 21. kol 2019.
        • Prijavi Tweet

        At a price of $2 far more Widget A's will be bought & sold than would be if the cost incurred by the manufacturer was based on the true social cost of $5, and assuming the same $1 profit a selling price of $6. 20/

        1 reply 10 proslijeđenih tweetova 46 korisnika označava da im se sviđa
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      21. Arash Kolahi‏ @ArashKolahi 21. kol 2019.
        • Prijavi Tweet

        In other words, the mispricing of Widget A causes an inefficiency because the artificially lower price of $2 will cause far more Widget A's to be produced & consumed than if they were correctly priced at $6. 21/

        1 reply 12 proslijeđenih tweetova 54 korisnika označavaju da im se sviđa
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      22. Arash Kolahi‏ @ArashKolahi 21. kol 2019.
        • Prijavi Tweet

        The problem is actually worse than this model shows because of the built-in incentives of market capitalism. The incentive for the manufacturer of Widget A is to externalize as much of the social costs as possible in order to maximize profits. 22/

        1 reply 12 proslijeđenih tweetova 55 korisnika označava da im se sviđa
        Prikaži ovu nit
      23. Arash Kolahi‏ @ArashKolahi 21. kol 2019.
        • Prijavi Tweet

        Conversely, the incentive for the consumer is also to externalize as much of the social costs as possible in order to minimize the price she has to pay. BOTH producers & consumers are incentivized to externalize social costs. 23/

        1 reply 9 proslijeđenih tweetova 54 korisnika označavaju da im se sviđa
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      24. Arash Kolahi‏ @ArashKolahi 21. kol 2019.
        • Prijavi Tweet

        Thus market capitalism causes incorrect incentives for both buyers and sellers: to externalize as much of the social & environmental costs as possible. This means the long term tendency will always be towards greater inefficiency and environmental destruction. 24/

        1 reply 11 proslijeđenih tweetova 56 korisnika označava da im se sviđa
        Prikaži ovu nit
      25. Arash Kolahi‏ @ArashKolahi 21. kol 2019.
        • Prijavi Tweet

        But that’s not all. To make matters worse, even if a good-hearted, well-intentioned manufacturer decides to incur greater expenses to better care for their employees & the environment they would have to complete with all the others who don’t. 25/

        10 proslijeđenih tweetova 49 korisnika označava da im se sviđa
        Prikaži ovu nit
      26. Arash Kolahi‏ @ArashKolahi 21. kol 2019.
        • Prijavi Tweet

        This situation creates a ‘race to the bottom’, where those who care the least and most aggressively externalize negative externalities will have greater profits and more competitive advantage. 26/

        1 reply 16 proslijeđenih tweetova 68 korisnika označava da im se sviđa
        Prikaži ovu nit
      27. Arash Kolahi‏ @ArashKolahi 21. kol 2019.
        • Prijavi Tweet

        Put simply, market capitalism punishes those who care and rewards those who don’t. Eventually, over time, those who care the least tend to outperform and out-compete those who care the most. 27/

        21 proslijeđeni tweet 76 korisnika označava da im se sviđa
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      28. Arash Kolahi‏ @ArashKolahi 21. kol 2019.
        • Prijavi Tweet

        This suicidal trajectory is part of the reason why it is so important to debunk these 5 lies. 28/

        1 reply 12 proslijeđenih tweetova 48 korisnika označava da im se sviđa
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      29. Arash Kolahi‏ @ArashKolahi 21. kol 2019.
        • Prijavi Tweet

        Ultimately if left unregulated the ‘invisible hand’ of market capitalism will lead to greater & greater externalization of negative externalities due to 1) incorrect incentives & 2) competitive ‘race to the bottom’. 29/

        1 reply 15 proslijeđenih tweetova 59 korisnika označava da im se sviđa
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      30. Arash Kolahi‏ @ArashKolahi 21. kol 2019.
        • Prijavi Tweet

        In order for efficient production and consumption of goods and services prices need to reflect the true social costs of those goods and services. If prices diverge from the true social costs, then either too much or too little will be produced and consumed. 30/

        1 reply 11 proslijeđenih tweetova 53 korisnika označavaju da im se sviđa
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      31. Arash Kolahi‏ @ArashKolahi 21. kol 2019.
        • Prijavi Tweet

        The fact that market capitalism inherently 1) externalizes most social costs of products and services from both buyers and sellers and 2) incentivizes both buyers and sellers to further externalize costs as much as possible means that it is inherently inefficient. 31/

        1 reply 12 proslijeđenih tweetova 56 korisnika označava da im se sviđa
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      32. Još 47 drugih odgovora

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