Hi Frank - "When and where does one draw the line in the sand?"
I'll attempt an answer.
In the end, the matter becomes so complex that it's philosophical. Nevertheless, decisions must be made.
I suggest the answer lies in self-government: decide what you want (as an individual, company or nation), then act accordingly.
Here, "you" means one of the entities defined above. If you decide that your overriding concerns are both sufficiency and self-sufficiency, then you will act one way.
If your decision relies on market mechanisms for supply (including new technology) you'll act in a different way.
If you (collectively or individually) believe in prudence, you'll act prudently. The point here is that "you" are governed by your beliefs, and the existence of security (diminished risk) or enhanced future viability may be worthwhile to you, even at a relative cost disadvantage.
That's a value judgement influenced by economics, not an economic judgement influenced by values.
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There's no satisfactory answer to the accounting problems you enumerate; we discussed the issue of "accounting leakage" upstream, WRT Internet use. Is everybody paying "fairly"? Probably not. How well would the Internet work without advertising revenue? Is it necessary, or merely an application of old media revenue models to new technology?
Finance and accounting is inexact; much relies on the "treatment" given and the assumptions made.
I suggest that these problems, while important, can be worked out on an ad hoc basis. There may be no enduring answers, but instead, a pattern of continuous micro/macro adjustment.
Jim |
