
Do We Actually Need Taxes?
Economics Explained
00:00
A Solution to the Problems of Negative Externalities
You can't really stop someone from basking in the light of a street lamp, and because of that it's hard to charge someone money to provide this service. The same thing is true on a larger scale with things like emergency services and military protection. A solution to all of this is to set up communities that address the problems of these indiscriminate goods. But if you haven't realized by now, this company is basically just a government with taxes with more steps. Very quickly, you arrive at an outcome where rich people just declare war on things to get their way - which is a dicey reality to be living in.
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