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6) Some people believe that high-voltage power lines create electromagnetic fields (EMFs) that 
may increase the likelihood of cancer for people living near those lines. What would Pigou 
recommend we do? What about Coase? 


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12 Dec 2018
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Related questions

19.) You have all heard the saying about how there are only two things in life that you must do: die and pay taxes. So far, no one has discovered a cure for death nor developed a way to finance government without taxes. Many people believe that we never will create eternal life here on earth, but there are many more people who believe that taxation can be eliminated. Are you one of those people? Discuss some ideas of possibly financing the government without taxation. (Hint: One method might be a national lottery). Keep in mind that some states have already eliminated personal income taxes and some do not have sales taxes.

Topic:
How would you explain the finding that people in high-income economies seem happier than people in low-income economies, but, over time, people in high-income economies do not seem to be any happier even if their country grows richer? Briefly discuss.

Optional Reading:

Income and Happiness

The Declaration of Independence in 1776 identified “certain unalienable Rights, that among these are Life, Liberty, and the Pursuit of Happiness.” This did not guarantee happiness but did establish the pursuit of happiness as an “unalienable” right, meaning that right cannot be taken away, given away, or sold. Eighteenth century philosopher and social reformer Jeremy Bentham argued that government policy should promote the greatest happiness for the greatest number of people.

Many people today apparently agree. In recent polls, 77 percent of Australians and 81 percent of Brits believed that a government's prime objective should be promoting the greatest happiness rather than the greatest wealth. The United Nations in 2007 sponsored an international conference on “Happiness and Public Policy.” Thailand now compiles a monthly Gross Domestic Happiness Index. Even China has joined in the fun reporting a happiness index based on polling results about living conditions, income, the environment, social welfare, and employment. Australia, Canada, and the United Kingdom are also developing happiness indexes.

Economists have long shied away from asking people how they feel, preferring instead to observe their behavior. But more now see some value in asking questions. In the most extensive of polls, the Gallup organization asked people in 130 countries: “How satisfied are you with your life, on a scale of zero to ten?” The results, reported in 2007, are not surprising. Most people in the high income areas, such as the United States, Europe, and Japan, said they are happy. Most people in the poor areas, especially in Africa, said they are not. Also, within a given country, income and happiness are positively related. After evaluating all the results of the Gallup world poll, Angus Deaton of Princeton concluded: “The very strong international relationship between per capita GDP and life satisfaction suggests that, on average, people have a good idea of how income, or the lack of it, affects their lives.” 8

So these results are no surprise. What does puzzle economists is that other surveys suggest that in affluent countries people do not seem any happier over time even though each generation became richer than the last. For example, in the United States, the proportion of people who say they are happy has stayed about the same despite 60 years of economic growth. In Japan, happiness responses actually declined despite a substantial increase in real income over the last 50 years.

Here are two possible explanations. First, people begin taking for granted those luxuries they most desired. For example, two generations ago color TVs, automobiles, and major appliances were luxuries, but now they are must-items for most households. Computers and flat screen HDTVs will soon move from luxuries to necessities. As each generation attains a higher standard of living, people become less sensitive to the benefits, they take them for granted, and thus they say they are no happier.

Second, research suggests that what matters is not just the absolute level of income but income relative other people in the reference group. Imagine you have a choice between (1) earning $50,000 a year while others in your reference group make $25,000 or (2) earning $100,000 a year while others make $250,000 (suppose, too, that prices remain the same, so $100,000 is double the real income of $50,000). Which would you prefer? Studies show that when people face this hypothetical choice, most pick the $50,000 option. That is, they prefer to make more than others even if that means a lower real income. Thus, if all incomes rise on average over time, this does not affect that aspect of happiness linked to one’s relative standing. As the social critic H. L. Mencken long ago observed, "A wealthy man is one who earns $100 a year more than his wife's sister's husband."

SOURCES: Daniel Gilbert, Stumbling On Happiness, (New York: Knopf, 2006); Marina Kamenev, “Rating Countries for the Happiness Factor,” Business Week, 11 October 2006; Angus Deaton, “Income, Aging, Health, and Wellbeing Around the World: Evidence from the Gallup World Poll,” Princeton Working Paper, (August 2007); and “Where Money Seems to Talk,” Economist, 12 July 200

the population be in 2050? It is estimat... Bookmark What will the population be in 2050? It is estimated by the United Nations for the population of the world to be 9 billion people. That is an addition of 2 billion people. Energy agencies use population growth to help determine energy consumption. (Peak) Why does the world have such an increase in population? There are many things that aid in this growth, from newer medical technologies, cleanliness to food supply. Cheaper energy sources have also aided in this growth. As we look at energy sources, we need to realize that some are at its maximum of producing energy and that may affect the population growth. (Peak) Sometimes we have to make decisions without having all of the information we might need. When this happens how do we make a decision that takes everyone's best interests involved into account? Population predictions can often be difficult to accurately determine, yet in order to make decisions and plans about our local communities and the global community we have to make some imperfect predictions about future populations in order to attempt to allocate resources for future generations. As the population continues to increase, what happens to our energy resources? Are we depleting energy resources? In this discussion, think about what powers the world and discuss whether these resources are limited or not? Choose a new technology for power sources and discuss (some examples are Fusion, Solar Panels, Windmills, etc).

Prompt Now think about this on a more personal note and focus on yourself. If the world was running out of power sources, and you are asked to present your top 3 energy powered items that you would struggle losing (in your career and/or personal life)? If you had to limit your resources, which of these 3 would you choose to give up in order to keep your other 2 items that are power sourced?

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