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	<title>Comments on: Gangster Capitalism</title>
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	<link>http://crookedtimber.org/2007/11/27/gangster-capitalism/</link>
	<description>Out of the crooked timber of humanity, no straight thing was ever made</description>
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		<title>By: lemuel pitkin</title>
		<link>http://crookedtimber.org/2007/11/27/gangster-capitalism/comment-page-2/#comment-219881</link>
		<dc:creator>lemuel pitkin</dc:creator>
		<pubDate>Fri, 30 Nov 2007 23:25:20 +0000</pubDate>
		<guid isPermaLink="false">http://crookedtimber.org/2007/11/27/gangster-capitalism/#comment-219881</guid>
		<description>Engles-

It&#039;s sort of common sense, right?

Since there are limits to how high we can get the cost of illegal dumping, we &lt;b&gt;also&lt;/b&gt; need to lower the cost of legal dumping. (Then raise the costs of production of toxic waste, if you like.)

It&#039;s the same argument that says extremely harsh penalties for minor crimes are counterproductive, because they mean there is no additional penalty for e.g. killing someone in the course of a robbery.

It&#039;s the same argument that makes needle exchanges a good idea even if you would also like to reduce heroin use.

It&#039;s the same argument that leads to the distribution of condoms in prison even though prisoners aren&#039;t supposed to be having sex.

It&#039;s the same argument that leads to giving drivers licenses to undocumented immigrants, and not asking about immigration status when people call the police or the fire department, even if you would rather eliminate illegal immigration.

When the alternative to one antisocial act is another much more harmful one, it often makes sense to encourage the less harmful alternative.

I can&#039;t for the life of me understand why you&#039;re so resistant to this.</description>
		<content:encoded><![CDATA[	<p>Engles-</p>

	<p>It&#8217;s sort of common sense, right?</p>

	<p>Since there are limits to how high we can get the cost of illegal dumping, we <b>also</b> need to lower the cost of legal dumping. (Then raise the costs of production of toxic waste, if you like.)</p>

	<p>It&#8217;s the same argument that says extremely harsh penalties for minor crimes are counterproductive, because they mean there is no additional penalty for e.g. killing someone in the course of a robbery.</p>

	<p>It&#8217;s the same argument that makes needle exchanges a good idea even if you would also like to reduce heroin use.</p>

	<p>It&#8217;s the same argument that leads to the distribution of condoms in prison even though prisoners aren&#8217;t supposed to be having sex.</p>

	<p>It&#8217;s the same argument that leads to giving drivers licenses to undocumented immigrants, and not asking about immigration status when people call the police or the fire department, even if you would rather eliminate illegal immigration.</p>

	<p>When the alternative to one antisocial act is another much more harmful one, it often makes sense to encourage the less harmful alternative.</p>

	<p>I can&#8217;t for the life of me understand why you&#8217;re so resistant to this.</p>
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		<title>By: engels</title>
		<link>http://crookedtimber.org/2007/11/27/gangster-capitalism/comment-page-2/#comment-219879</link>
		<dc:creator>engels</dc:creator>
		<pubDate>Fri, 30 Nov 2007 22:57:44 +0000</pubDate>
		<guid isPermaLink="false">http://crookedtimber.org/2007/11/27/gangster-capitalism/#comment-219879</guid>
		<description>Lemuel: Did you actually read the argument you claim to be adjudicating? That the optimal policy necessarily involves subsidies is really not self-evident. Really! Also, I haven&#039;t advocated any &quot;policy&quot;. Assuming you did read it, you have demonstrated yourself to be even less capable of following an argument than Tracy is. Anyway, this is perhaps the most tedious discussion I have ever been involved in so I shall leave the two of you to misread what I wrote to your hearts&#039; content. Arrivederci!</description>
		<content:encoded><![CDATA[	<p>Lemuel: Did you actually read the argument you claim to be adjudicating? That the optimal policy necessarily involves subsidies is really not self-evident. Really! Also, I haven&#8217;t advocated any &#8220;policy&#8221;. Assuming you did read it, you have demonstrated yourself to be even less capable of following an argument than Tracy is. Anyway, this is perhaps the most tedious discussion I have ever been involved in so I shall leave the two of you to misread what I wrote to your hearts&#8217; content. Arrivederci!</p>
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		<title>By: lemuel pitkin</title>
		<link>http://crookedtimber.org/2007/11/27/gangster-capitalism/comment-page-2/#comment-219875</link>
		<dc:creator>lemuel pitkin</dc:creator>
		<pubDate>Fri, 30 Nov 2007 22:39:30 +0000</pubDate>
		<guid isPermaLink="false">http://crookedtimber.org/2007/11/27/gangster-capitalism/#comment-219875</guid>
		<description>also, I don&#039;t see what the point is of comparing dumping to murder. First, the issue with dumping is the relative cost of dumping legally versus illegally; there&#039;s no equivalent legal substitute for murder. And second, we ARE willing to devote a lot of police resources to investigating murders (which in any case are harder to conceal than illegal dumping) and have no problem imposing extremely severe penalties on people who are guilty of it. So price incentives to discourage murder make no sense.</description>
		<content:encoded><![CDATA[	<p>also, I don&#8217;t see what the point is of comparing dumping to murder. First, the issue with dumping is the relative cost of dumping legally versus illegally; there&#8217;s no equivalent legal substitute for murder. And second, we <span class="caps">ARE</span> willing to devote a lot of police resources to investigating murders (which in any case are harder to conceal than illegal dumping) and have no problem imposing extremely severe penalties on people who are guilty of it. So price incentives to discourage murder make no sense.</p>
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		<title>By: lemuel pitkin</title>
		<link>http://crookedtimber.org/2007/11/27/gangster-capitalism/comment-page-2/#comment-219868</link>
		<dc:creator>lemuel pitkin</dc:creator>
		<pubDate>Fri, 30 Nov 2007 22:14:26 +0000</pubDate>
		<guid isPermaLink="false">http://crookedtimber.org/2007/11/27/gangster-capitalism/#comment-219868</guid>
		<description>I can&#039;t for the life of me see what Engles and tracy W are arguing about. We alla gree that:

1. We want less toxic waste produced.

2. What toxic waste is produced, we want disposed of  safely (i.e. legally).

3. Goals 1 and 2 can be achieved through various mixes of legal requirements and price incentives.

Lowering the price of of disposing of toxic waste helps with goal 2, but undermines goal 1. On the other hand, preventing unsafe disposal of toxic waste purely through regulation may require impractically intense surveillance and/or heavy penalties. So the optimal policy is going to involve some mix of criminal penalties for unsafe disposal (Engels) and cost incentives/subsidies for safe disposal (Tracy).

The funny thing is, I bet if the two of them were on a committee that actually had to draw up a toxic-waste disposal policy for a local government, they would have no trouble reaching agreement.</description>
		<content:encoded><![CDATA[	<p>I can&#8217;t for the life of me see what Engles and tracy W are arguing about. We alla gree that:</p>

	<p>1. We want less toxic waste produced.</p>

	<p>2. What toxic waste is produced, we want disposed of  safely (i.e. legally).</p>

	<p>3. Goals 1 and 2 can be achieved through various mixes of legal requirements and price incentives.</p>

	<p>Lowering the price of of disposing of toxic waste helps with goal 2, but undermines goal 1. On the other hand, preventing unsafe disposal of toxic waste purely through regulation may require impractically intense surveillance and/or heavy penalties. So the optimal policy is going to involve some mix of criminal penalties for unsafe disposal (Engels) and cost incentives/subsidies for safe disposal (Tracy).</p>

	<p>The funny thing is, I bet if the two of them were on a committee that actually had to draw up a toxic-waste disposal policy for a local government, they would have no trouble reaching agreement.</p>
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		<title>By: engels</title>
		<link>http://crookedtimber.org/2007/11/27/gangster-capitalism/comment-page-2/#comment-219829</link>
		<dc:creator>engels</dc:creator>
		<pubDate>Fri, 30 Nov 2007 20:23:30 +0000</pubDate>
		<guid isPermaLink="false">http://crookedtimber.org/2007/11/27/gangster-capitalism/#comment-219829</guid>
		<description>(Example: The Italian government introduces a one thousand euro fine for eating French Fries. Would this have any effect on the propensity of Mafioso types to eat French Fries? I rather think it would, despite the fact that, as you say, it is not &quot;steeper than [the penalties] already applicable for murder and torture&quot;.)</description>
		<content:encoded><![CDATA[	<p>(Example: The Italian government introduces a one thousand euro fine for eating French Fries. Would this have any effect on the propensity of Mafioso types to eat French Fries? I rather think it would, despite the fact that, as you say, it is not &#8220;steeper than [the penalties] already applicable for murder and torture&#8221;.)</p>
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		<title>By: engels</title>
		<link>http://crookedtimber.org/2007/11/27/gangster-capitalism/comment-page-2/#comment-219826</link>
		<dc:creator>engels</dc:creator>
		<pubDate>Fri, 30 Nov 2007 20:11:27 +0000</pubDate>
		<guid isPermaLink="false">http://crookedtimber.org/2007/11/27/gangster-capitalism/#comment-219826</guid>
		<description>Yawn. There are high penalties for murder and yet the Mafia kill people. This does not mean that the behaviour of the Mafia is not responsive to legal incentives.</description>
		<content:encoded><![CDATA[	<p>Yawn. There are high penalties for murder and yet the Mafia kill people. This does not mean that the behaviour of the Mafia is not responsive to legal incentives.</p>
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		<title>By: engels</title>
		<link>http://crookedtimber.org/2007/11/27/gangster-capitalism/comment-page-1/#comment-219818</link>
		<dc:creator>engels</dc:creator>
		<pubDate>Fri, 30 Nov 2007 19:31:21 +0000</pubDate>
		<guid isPermaLink="false">http://crookedtimber.org/2007/11/27/gangster-capitalism/#comment-219818</guid>
		<description>&lt;i&gt;By the way, Engels, why don’t you apply your statement “If you won’t provide estimates of these costs then it amounts to little more than rhetoric” to yourself?&lt;/i&gt;

Because &quot;he who asserts must prove&quot;. You claimed that--

&lt;i&gt;the fundamental problem is that toxic waste is far more expensive to dispose of legally than illegally. This argues for government subsidy of waste disposal&lt;/i&gt;

I merely pointed out that you haven&#039;t given any real reason why anybody else should believe it.</description>
		<content:encoded><![CDATA[	<p><i>By the way, Engels, why don&#8217;t you apply your statement &#8220;If you won&#8217;t provide estimates of these costs then it amounts to little more than rhetoric&#8221; to yourself?</i></p>

	<p>Because &#8220;he who asserts must prove&#8221;. You claimed that&#8212;<br />
<i>the fundamental problem is that toxic waste is far more expensive to dispose of legally than illegally. This argues for government subsidy of waste disposal</i></p>

	<p>I merely pointed out that you haven&#8217;t given any real reason why anybody else should believe it.</p>
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		<title>By: Tracy W</title>
		<link>http://crookedtimber.org/2007/11/27/gangster-capitalism/comment-page-1/#comment-219805</link>
		<dc:creator>Tracy W</dc:creator>
		<pubDate>Fri, 30 Nov 2007 18:47:06 +0000</pubDate>
		<guid isPermaLink="false">http://crookedtimber.org/2007/11/27/gangster-capitalism/#comment-219805</guid>
		<description>Watson - what fines do you plan to apply to the Mafia or the Cammorra for dumping toxic waste that are steeper than those already applicable for murder and torture? (Assuming that the Mafia and the Camorra actually do murder and torture people, Engels has not got back to me on that point yet). 

As for more legitimate factories - you say &quot;you don&#039;t often have to shut factories down&quot;, what I am skeptical about is whether the regulators can shut down any factory in practice.</description>
		<content:encoded><![CDATA[	<p>Watson &#8211; what fines do you plan to apply to the Mafia or the Cammorra for dumping toxic waste that are steeper than those already applicable for murder and torture? (Assuming that the Mafia and the Camorra actually do murder and torture people, Engels has not got back to me on that point yet).</p>

	<p>As for more legitimate factories &#8211; you say &#8220;you don&#8217;t often have to shut factories down&#8221;, what I am skeptical about is whether the regulators can shut down any factory in practice.</p>
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		<title>By: Tracy W</title>
		<link>http://crookedtimber.org/2007/11/27/gangster-capitalism/comment-page-1/#comment-219801</link>
		<dc:creator>Tracy W</dc:creator>
		<pubDate>Fri, 30 Nov 2007 18:39:19 +0000</pubDate>
		<guid isPermaLink="false">http://crookedtimber.org/2007/11/27/gangster-capitalism/#comment-219801</guid>
		<description>By the way, Engels, why don&#039;t you apply your statement &quot;If you won’t provide estimates of these costs then it amounts to little more than rhetoric&quot; to yourself? Why do you think I should hold myself to a debating line you don&#039;t use?</description>
		<content:encoded><![CDATA[	<p>By the way, Engels, why don&#8217;t you apply your statement &#8220;If you won&#8217;t provide estimates of these costs then it amounts to little more than rhetoric&#8221; to yourself? Why do you think I should hold myself to a debating line you don&#8217;t use?</p>
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		<title>By: Tracy W</title>
		<link>http://crookedtimber.org/2007/11/27/gangster-capitalism/comment-page-1/#comment-219785</link>
		<dc:creator>Tracy W</dc:creator>
		<pubDate>Fri, 30 Nov 2007 17:02:15 +0000</pubDate>
		<guid isPermaLink="false">http://crookedtimber.org/2007/11/27/gangster-capitalism/#comment-219785</guid>
		<description>&lt;i&gt;If you won’t provide estimates of these costs then it amounts to little more than rhetoric. What you consider ‘thinking of the children’ others see as ‘buying off criminals’; a rather futile debate.&lt;/i&gt;

Engels, I&#039;m consciously using rhetoric to recast what people see as &quot;buying off criminals&quot; into &quot;thinking of the children&quot;. My object is to persuade people to switch away from kneejerk &quot;polluter pays&quot; reactions to consider what best protects people, including children. 

Whether I will succeed is an empirical question, but I&#039;ve seen rhetorical arguments work in the past. I don&#039;t think that rhetoric is futile. And if we can&#039;t get empirical estimates like what you want, then what do we have but rhetoric?</description>
		<content:encoded><![CDATA[	<p><i>If you won&#8217;t provide estimates of these costs then it amounts to little more than rhetoric. What you consider &#8216;thinking of the children&#8217; others see as &#8216;buying off criminals&#8217;; a rather futile debate.</i></p>

	<p>Engels, I&#8217;m consciously using rhetoric to recast what people see as &#8220;buying off criminals&#8221; into &#8220;thinking of the children&#8221;. My object is to persuade people to switch away from kneejerk &#8220;polluter pays&#8221; reactions to consider what best protects people, including children.</p>

	<p>Whether I will succeed is an empirical question, but I&#8217;ve seen rhetorical arguments work in the past. I don&#8217;t think that rhetoric is futile. And if we can&#8217;t get empirical estimates like what you want, then what do we have but rhetoric?</p>
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		<title>By: engels</title>
		<link>http://crookedtimber.org/2007/11/27/gangster-capitalism/comment-page-1/#comment-219772</link>
		<dc:creator>engels</dc:creator>
		<pubDate>Fri, 30 Nov 2007 15:39:50 +0000</pubDate>
		<guid isPermaLink="false">http://crookedtimber.org/2007/11/27/gangster-capitalism/#comment-219772</guid>
		<description>There doesn&#039;t need to be a complete comparison of the costs and benefits. But your argument is essentially CBA: you must think that the human and environmental costs of increased waste production, and the financial cost of your subsidy, is outweighed by the existing costs of illegal dumping. If you won&#039;t provide estimates of these costs then it amounts to little more than rhetoric. What you consider &#039;thinking of the children&#039; others see as &#039;buying off criminals&#039;; a rather futile debate.</description>
		<content:encoded><![CDATA[	<p>There doesn&#8217;t need to be a complete comparison of the costs and benefits. But your argument is essentially <span class="caps">CBA</span>: you must think that the human and environmental costs of increased waste production, and the financial cost of your subsidy, is outweighed by the existing costs of illegal dumping. If you won&#8217;t provide estimates of these costs then it amounts to little more than rhetoric. What you consider &#8216;thinking of the children&#8217; others see as &#8216;buying off criminals&#8217;; a rather futile debate.</p>
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		<title>By: Tracy W</title>
		<link>http://crookedtimber.org/2007/11/27/gangster-capitalism/comment-page-1/#comment-219731</link>
		<dc:creator>Tracy W</dc:creator>
		<pubDate>Fri, 30 Nov 2007 11:17:58 +0000</pubDate>
		<guid isPermaLink="false">http://crookedtimber.org/2007/11/27/gangster-capitalism/#comment-219731</guid>
		<description>Engels:
&lt;i&gt; would say that the fundamental problem is that toxic waste is far more expensive to dispose of legally than illegally. This argues for government subsidy of waste disposal

is wrong. It all depends on (a) the cost of the subsidy and (b) the costs (including intangible costs) of each of the behaviours in question. Unfortunately Tracy doesn’t seem interested in providing such details&lt;/i&gt;

I note that you also don&#039;t seem interested in providing such details. I don&#039;t provide any details because I don&#039;t have the numbers. I assume this is why you don&#039;t provide any details either. I think this is a case of the fridge calling the freezer white. 

The problem with the sort of comprehensive study you apparently want someone else to carry out is that monitoring illegal dumping of toxic waste is incredibly difficult. People often fail to report illegal activity, even when the government passes a law obliging them to do so. Sometimes illegal dumping of toxic waste only comes to light years afterwards. I don&#039;t think we will ever get the information to do a full comparison of the costs and benefits that you want to do. 

In the absence of definitive knowledge, I do worry about small children being exposed to illegally-dumped toxic waste. I get the impression you think such worries are merely so much hot air, but I know what my worries are based on, and they are based on harms to real, living people. Calling them &quot;hot air&quot; will not suddenly make illegally-dumped toxic waste a non-problem.</description>
		<content:encoded><![CDATA[	<p>Engels:<br />
<i> would say that the fundamental problem is that toxic waste is far more expensive to dispose of legally than illegally. This argues for government subsidy of waste disposal</i></p>

	<p>is wrong. It all depends on (a) the cost of the subsidy and (b) the costs (including intangible costs) of each of the behaviours in question. Unfortunately Tracy doesn&#8217;t seem interested in providing such details</p>

	<p>I note that you also don&#8217;t seem interested in providing such details. I don&#8217;t provide any details because I don&#8217;t have the numbers. I assume this is why you don&#8217;t provide any details either. I think this is a case of the fridge calling the freezer white.</p>

	<p>The problem with the sort of comprehensive study you apparently want someone else to carry out is that monitoring illegal dumping of toxic waste is incredibly difficult. People often fail to report illegal activity, even when the government passes a law obliging them to do so. Sometimes illegal dumping of toxic waste only comes to light years afterwards. I don&#8217;t think we will ever get the information to do a full comparison of the costs and benefits that you want to do.</p>

	<p>In the absence of definitive knowledge, I do worry about small children being exposed to illegally-dumped toxic waste. I get the impression you think such worries are merely so much hot air, but I know what my worries are based on, and they are based on harms to real, living people. Calling them &#8220;hot air&#8221; will not suddenly make illegally-dumped toxic waste a non-problem.</p>
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		<title>By: Tracy W</title>
		<link>http://crookedtimber.org/2007/11/27/gangster-capitalism/comment-page-1/#comment-219730</link>
		<dc:creator>Tracy W</dc:creator>
		<pubDate>Fri, 30 Nov 2007 11:02:21 +0000</pubDate>
		<guid isPermaLink="false">http://crookedtimber.org/2007/11/27/gangster-capitalism/#comment-219730</guid>
		<description>Engels:
&lt;i&gt;I’m very surprised to hear that the legal penalties for murder do not deter the Mafia from murdering people. So their behaviour would be just the same in the absence of such penalties?&lt;/i&gt;

I am not sure what your point here is. Are you arguing that Roberto Saviano’s book is wrong, and the Camorra don&#039;t murder people? 

I am not an Italian. I am not an expert on Italy. I have assumed that the newspaper reports of judges being murdered and people being beaten up and the like were genuine. I am well aware I may be misinformed - I have never seen the Mafia or the Camorra murder or torture someone with my own eyes. But I have been told about so many crimes by the Mafia and Camorra by so many different people I am willing to give some credence to their statements. 

&lt;i&gt;As long as it is disposed of legally toxic waste is g-r-r-eat! &lt;/i&gt;

One source of toxic waste comes from medical facilities. Do you intend to reduce the number of blood samples doctors take, times bandages are changed, use of drains to remove pus, etc, in order to reduce the amount of toxic waste produced?</description>
		<content:encoded><![CDATA[	<p>Engels:<br />
<i>I&#8217;m very surprised to hear that the legal penalties for murder do not deter the Mafia from murdering people. So their behaviour would be just the same in the absence of such penalties?</i></p>

	<p>I am not sure what your point here is. Are you arguing that Roberto Saviano&#8217;s book is wrong, and the Camorra don&#8217;t murder people?</p>

	<p>I am not an Italian. I am not an expert on Italy. I have assumed that the newspaper reports of judges being murdered and people being beaten up and the like were genuine. I am well aware I may be misinformed &#8211; I have never seen the Mafia or the Camorra murder or torture someone with my own eyes. But I have been told about so many crimes by the Mafia and Camorra by so many different people I am willing to give some credence to their statements.</p>

	<p><i>As long as it is disposed of legally toxic waste is g-r-r-eat! </i></p>

	<p>One source of toxic waste comes from medical facilities. Do you intend to reduce the number of blood samples doctors take, times bandages are changed, use of drains to remove pus, etc, in order to reduce the amount of toxic waste produced?</p>
 ]]></content:encoded>
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		<title>By: Walt</title>
		<link>http://crookedtimber.org/2007/11/27/gangster-capitalism/comment-page-1/#comment-219700</link>
		<dc:creator>Walt</dc:creator>
		<pubDate>Fri, 30 Nov 2007 05:02:01 +0000</pubDate>
		<guid isPermaLink="false">http://crookedtimber.org/2007/11/27/gangster-capitalism/#comment-219700</guid>
		<description>I have let chocolate cake go stale.</description>
		<content:encoded><![CDATA[	<p>I have let chocolate cake go stale.</p>
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		<title>By: engels</title>
		<link>http://crookedtimber.org/2007/11/27/gangster-capitalism/comment-page-1/#comment-219695</link>
		<dc:creator>engels</dc:creator>
		<pubDate>Fri, 30 Nov 2007 04:20:27 +0000</pubDate>
		<guid isPermaLink="false">http://crookedtimber.org/2007/11/27/gangster-capitalism/#comment-219695</guid>
		<description>&lt;i&gt;Your position only makes sense if toxics reduction in the manufacturing process is much, much cheaper than safe disposal of toxic by products in every case.&lt;/i&gt;

I&#039;m not sure what you think my &#039;position&#039; is, since I haven&#039;t stated it, but I don&#039;t see how this can be true. For example, it would be reasonable to argue that we should reduce our production of toxic waste by a certain amount if doing so would incur a smaller disutility than the &#039;safe&#039; disposal of the same amount of toxic waste. Not &quot;very, very&quot; much smaller and certainly not &quot;in every case&quot;. This smaller disutility is obviously not just a matter of financial cost (&quot;cheaper&quot;).

At any rate, the point of the analogy is clear. Like the two types of mugging, both types of behaviour (illegal dumping and legal disposal) are undesirable. Subsidising people to change from the first to the second is not necessarily a good idea--especially if a one effect of doing so is to increase additional incentives for the second--and Tracy&#039;s implication to the contrary:

&lt;i&gt;I would say that the fundamental problem is that toxic waste is far more expensive to dispose of legally than illegally. This argues for government subsidy of waste disposal&lt;/i&gt;

is wrong. It all depends on (a) the cost of the subsidy and (b) the costs (including intangible costs) of each of the behaviours in question. Unfortunately Tracy doesn&#039;t seem interested in providing such details, preferring to rhetoricise about &quot;children&#039;s lives being put at risk&quot; by illegal dumping, but without them her &#039;argument&#039;, and yours, remains so much hot air.</description>
		<content:encoded><![CDATA[	<p><i>Your position only makes sense if toxics reduction in the manufacturing process is much, much cheaper than safe disposal of toxic by products in every case.</i></p>

	<p>I&#8217;m not sure what you think my &#8216;position&#8217; is, since I haven&#8217;t stated it, but I don&#8217;t see how this can be true. For example, it would be reasonable to argue that we should reduce our production of toxic waste by a certain amount if doing so would incur a smaller disutility than the &#8216;safe&#8217; disposal of the same amount of toxic waste. Not &#8220;very, very&#8221; much smaller and certainly not &#8220;in every case&#8221;. This smaller disutility is obviously not just a matter of financial cost (&#8220;cheaper&#8221;).</p>

	<p>At any rate, the point of the analogy is clear. Like the two types of mugging, both types of behaviour (illegal dumping and legal disposal) are undesirable. Subsidising people to change from the first to the second is not necessarily a good idea&#8212;especially if a one effect of doing so is to increase additional incentives for the second&#8212;and Tracy&#8217;s implication to the contrary:</p>

	<p><i>I would say that the fundamental problem is that toxic waste is far more expensive to dispose of legally than illegally. This argues for government subsidy of waste disposal</i></p>

	<p>is wrong. It all depends on (a) the cost of the subsidy and (b) the costs (including intangible costs) of each of the behaviours in question. Unfortunately Tracy doesn&#8217;t seem interested in providing such details, preferring to rhetoricise about &#8220;children&#8217;s lives being put at risk&#8221; by illegal dumping, but without them her &#8216;argument&#8217;, and yours, remains so much hot air.</p>
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