"Sustainability" is a rotten substitute for what we should have, which is an economy and tax regime that more closely match what companies do with their real costs of doing business. If oil producers, for example, are melting the icecaps and drowning our cities (which appears to be the case), then the costs they inflict on others should be endogenized in their businesses.
A system that does this will never be perfect, or entirely fair, but the current situation, where some (many) companies can pollute and pass those costs onto others with no redress, while keeping their profits, is far worse.
Efforts at "sustainable" business practices are just an attempt to sidestep this necessity.
Excellent post. Reminded me of what Henry David Thoreau wrote, "It is truly enough said that a corporation has no conscience; but a corporation of conscientious men is a corporation with a conscience."
Please excuse an off topic comment but I would be interested in your thoughts on Gabaix and Koijens work on Inelastic Markets. In particular their work coupled the relatively high and icreasing percentage of passive investing suggests that valuation based on fundamental analysis may be less effective in today's market.
"Sustainability" is a rotten substitute for what we should have, which is an economy and tax regime that more closely match what companies do with their real costs of doing business. If oil producers, for example, are melting the icecaps and drowning our cities (which appears to be the case), then the costs they inflict on others should be endogenized in their businesses.
A system that does this will never be perfect, or entirely fair, but the current situation, where some (many) companies can pollute and pass those costs onto others with no redress, while keeping their profits, is far worse.
Efforts at "sustainable" business practices are just an attempt to sidestep this necessity.
Great take as always, thank you sir!
Excellent post. Reminded me of what Henry David Thoreau wrote, "It is truly enough said that a corporation has no conscience; but a corporation of conscientious men is a corporation with a conscience."
Excelent, thanks!,,,,,
Please excuse an off topic comment but I would be interested in your thoughts on Gabaix and Koijens work on Inelastic Markets. In particular their work coupled the relatively high and icreasing percentage of passive investing suggests that valuation based on fundamental analysis may be less effective in today's market.
One of the better piece of paper I read on this topic. Thanks for the insights.