Cost-Benefit Balance (2)
If the economy is producing Q1 –
- the Human Economic Costs of that production is P1.
- the Human Economic Effective Value of the consumption of Q1 is P2.
- Humanity would be better off if the economic output was reduced to Q*.
(The Effective Value is costing too much!)
The Great Challenge –
How to achieve that optimum adjustment of economic output without resorting to coercion?
