March 1, 2017
Boston Business Journal
President Harry Truman once complained that he’d like to hire a one-armed economist because he was tired of hearing “On the one hand … on the other hand” from his economic advisers. But there is one issue on which economists from Paul Krugman on the left to Martin Feldstein on the right agree: a carbon fee is the best way to reduce carbon pollution and fight climate change.
A basic principle of economics is that the price of goods should reflect their costs. Buy a cup of coffee at Dunkin Donuts and you pay for the coffee beans, the staff behind the counter, and the costs of brewing that coffee. With accurate prices, the laws of supply and demand ensure we use our resources efficiently.
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