Economics Dictionary of ArgumentsHome
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| External benefit: An external benefit is a positive spillover effect of an economic activity that benefits third parties who are not directly involved. Examples include education (which improves society’s productivity) and vaccinations (which reduce disease spread). Since these benefits are not reflected in market prices, they often justify government intervention like subsidies. See also External cost, Externalities._____________Annotation: The above characterizations of concepts are neither definitions nor exhausting presentations of problems related to them. Instead, they are intended to give a short introduction to the contributions below. – Lexicon of Arguments. | |||
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Murray N. Rothbard on External Benefit - Dictionary of Arguments
Rothbard III 1032 External benefit/Rothbard: the problem of external benefits (…) [is] the major justification for government activities expounded by economists.(1) VsExternal benefit/Rothbard: Where individuals simply benefit themselves by their actions, many writers concede that the free market may be safely left unhampered. But men's actions may often, even inadvertently, benefit others. While one might think this a cause for rejoicing, critics charge that from this fact flow evils in abundance. A free exchange, where A and B mutually benefit, may be all very well, say these economists; but what if A does something voluntarily which benefits B as well as himself, but for which B pays nothing in exchange? >Free market/Economic theories. 1. The problem of "external costs," usually treated as symmetrical with external benefits, is not really related: it is a consequence of failure to enforce fully the rights of property. If As actions injure B's property, and the government refuses to stop the act and enforce damages, property rights and hence the free market are not being fully defended and maintained. Hence, external costs (e.g., smoke damage) are failures to maintain a fully free market, rather than defects of that market. See Mises, Human Action, New Haven, Conn.: Yale University Press, 1949. Reprinted by the Ludwig von Mises Institute, 1998. pp. 650-53; and de Jouvenel, "Political Economy of Gratuity," pp. 522-26._____________Explanation of symbols: Roman numerals indicate the source, arabic numerals indicate the page number. The corresponding books are indicated on the right hand side. ((s)…): Comment by the sender of the contribution. Translations: Dictionary of Arguments The note [Concept/Author], [Author1]Vs[Author2] or [Author]Vs[term] resp. "problem:"/"solution:", "old:"/"new:" and "thesis:" is an addition from the Dictionary of Arguments. If a German edition is specified, the page numbers refer to this edition. |
Rothbard II Murray N. Rothbard Classical Economics. An Austrian Perspective on the History of Economic Thought. Cheltenham, UK: Edward Elgar Publishing. Cheltenham 1995 Rothbard III Murray N. Rothbard Man, Economy and State with Power and Market. Study Edition Auburn, Alabama 1962, 1970, 2009 Rothbard IV Murray N. Rothbard The Essential von Mises Auburn, Alabama 1988 Rothbard V Murray N. Rothbard Power and Market: Government and the Economy Kansas City 1977 |
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