HEALTH, SOCIAL, AND ENVIRONMENTAL COSTS CONSTITUTE EXTERNAL COSTS. WE PAY FOR THESE THROUGH OUR TAXES, THROUGH HIGHER HEALTHCARE RATES, AND THROUGH POLLUTION TO THE ENVIRONMENT.
EXTERNAL COSTS = The social and environmental costs excluded from a producer’s retail price.
The Nation’s first industrial park, built at the great fall’s of New Jersey’s Passaic River, which is now an EPA Superfund Site. In 1792, Alexander Hamilton helped found “The Society for Establishing Useful Manufacturers” (S.U.M.). The group built a waterway that harnessed the Passaic River’s embedded energy and powered a variety of manufacturing concerns. After 200 years, these industries abandoned the area, leaving behind heavily-polluted waterways that are still being cleaned up.