Question

If you were appointed as the new U.S. Czar of Externalities, how would you address the negative externalities like pollution and unhealthy food in the United States right now, over the next 3-5 years, and over the next 10+ years? How would you address the positive externalities like child care and education in the United States right now, over the next 3-5 years, and over the next 10+ years? Explain your answers.

Answer 1

Negative externalities

1. For now, I can simply restrict people to go on the road without getting pollution get certificate , this would be necessary for the etravelling purpose otherwise a fine will be levied on the person. Unhealthy food can also be limited for the time being by stopping the people to advertise these kind of goods by which other person get fascinated.

2. Over next 3-5 years: The same procedure will be followed which is being followed right now and alternatively can ban the upcoming or new cars that will bring huge pollution. Also the food licence to those companies will not be given so that the healthy food is prepared .

3. Over 10+ years : Now that it has been very long, many cars would have been stopped production and hence the pollution controlled to a big extent. Also the licences for preparing fast food is not given , so they are not being produced by all the new shops made since 10 years.

Positive externalities

1. For now : The education and child care can be done by the continuous monitoring of the schools, institutions etc.

2. For 3-5 years from now : We can introduce new features for better education like digital classrooms etc. which can make better understanding of the concepts.

3. For 10 + years form now : Now that many new features have been introduced so after 10 years The education will be extremely good.