Has Mariana Mazzucato said how we should account for externalities?
Has Mariana Mazzucato said how she thinks we should account for economic externalities? Mariana Mazzucato argues that we should stop treating systemic problems (like climate change or inequality) merely as "externalities" or accidents of a perfect system . Instead, she advocates for a proactive "market-shaping" approach over a reactive "market-fixing" one. [ 1 , 2 ] She argues for restructuring the economy to account for these broader impacts through the following principles: [ 1 , 2 ] Move from Fixing to Shaping: Instead of using taxes or subsidies just to compensate for negative externalities (like carbon taxes), governments should set ambitious, directional "missions" that steer economies toward public good and sustainability from the start. [ 1 , 2 ] Share the Risks and Rewards: Because the public sector often takes the initial financial risks for major innovations (e.g., the internet or green tech), she argues that governments should...