Preet Singh

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The challenge is that public sanitation isn’t something the market necessarily provides. Toilets cost money, but defecating in the street is free. If I install a toilet, I bear all the costs, while the benefits of the cleaner street are felt by everyone. In economic parlance, that’s what is known as a positive externality – and goods that have positive externalities tend to be bought at a slower pace than society, as a whole, would prefer.
Fifty Things that Made the Modern Economy
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