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Old 05-25-2010, 08:12 AM  
woj
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Join Date: Jul 2002
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Quote:
Originally Posted by u-Bob View Post
A GFY user posted basically the same (as Llew Rockwell) in another thread:



The real problem is that in our current mixed economy, big corporations have no incentive to be careful and prevent huge disasters like the current BP oil leak. Corporations are only liable for damages upto $75m, instead of the full 100% as the should be. The rest of the damages are covered by.... normal citizens, the taxpayer....

In a pure capitalist system, in a 100% free market, corporations would be liable for 100% of the damages and would have a better incentive to prevent disasters.

This is what Llew Rockwell was talking about in his article....
the damages are covered by the $0.08 tax on every barrel, which is in a way just an insurance policy, all oil companies pay for it, then if something bad happens the clean up costs are covered by the $$ in the fund, exactly the same way that insurance works...
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