If you want people to consume less water, there are roughly two ways you could do it. One is to raise the price of water, and the other is to simply mandate that everyone cut back on their water consumption.
Either will work, but they work in different ways. And an important recent study from Casey Wichman, Laura Taylor, and Roger von Haefen suggests that the difference in how they work has crucial implications for how we think about a wide variety of issues. When economic inequality is really severe, using prices to regulate the distribution of scarce goods can be seriously unfair. At the same time, using non-price mechanisms can be seriously inefficient.
That means that inequality is preventing us from adopting efficient solutions to a wide variety of problems, ranging from drought response to traffic congestion to climate change.
ImportantCool’s money man Joe McIvor on the ins and outs of creating money from nothing The United States Federal Reserve has signaled that it is ending its program of “Quantitative Easing”, the controversial program of negative real interest rates and massive asset purchases funded by effectively “printing” money. So was printing a bunch of money to support...
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