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Apr 9th, 2015
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Ma week 2 discussion 1

Positive and Negative Externalities

The Government monitors and regulates businesses in both the public and private sectors, to ensure they are complying with Federal, State and local rules and regulations.  The result of these regulations can be referred to as positive or negative externalities.  

Provide an example of positive and negative externalities in the police (public) sector. What kind of impact can these externalities have on a budget and the people responsible for creating the budget?

Our discussion first individuals response need good and bad of post list references thanks

Externalities are the incidental effects that the activities or actions of one party have on another party. Positive externalities occur when the actions of a person or entity have a positive impact on an unrelated party. Negative externalities occur when a party's actions have an adverse impact on other individuals or entities (Ciaran, 2015). 

In Iraq the United States and Coalition forces used the burn pit method to dispose of all the garbage that was produced daily in every Forward Operating Bases known as FOB’s.  This was a simple process all they had to do is to dig a big hole in an open area fence it off and dump trash in it.  This process would also save the government money by not having to haul out the garbage in trucks to permanent landfills. Placing them in trucks would mean that they would have to send them out in convoys with security.  This would place service members and the drivers at risk of being attacked or getting struck by road side bombs.  This was a positive externality.

In these burn pits there was no regulation as to what was allowed to be burned so service members would dump Styrofoam, glass, chemicals and other toxic materials into the pits.  The FOB’s were kept clean and the garbage eliminated but, they did not think about the consequences of the toxic smoke that would change direction according to the wind.  Most of us would spend hours in direct smoke with no breathing devices causing long term breathing problems for most of us.  Now this will cost the government more money because they will have to provide long term health care that is costly and pay out money for compensation for those who were directly affected.


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