Tuesday, March 21, 2017

True Cost Pricing Verses Internal Profits And External Losses

About 30 years or so I got my hands on a book by some professor in San Diego California. It was a self published book and I can't recall the title or his name but the jest of it is what this story is about.

Excerpt:
Trucost’s third big finding is the coup de grace. Of the top 20 region-sectors ranked by environmental impacts, none would be profitable if environmental costs were fully integrated. Ponder that for a moment: None of the world’s top industrial sectors would be profitable if they were paying their full freight. Zero.
That amounts to an global industrial system built on sleight of hand. As Paul Hawken likes to put it, we are stealing the future, selling it in the present, and calling it GDP.
Trucost’s third big finding is the coup de grace. Of the top 20 region-sectors ranked by environmental impacts, none would be profitable if environmental costs were fully integrated. Ponder that for a moment: None of the world’s top industrial sectors would be profitable if they were paying their full freight. Zero.
That amounts to an global industrial system built on sleight of hand. As Paul Hawken likes to put it, we are stealing the future, selling it in the present, and calling it GDP.
So, if things we bought included the cost to society to make and dispose of, many people would make different choices. See more here.

1 comment:

  1. Very good point Tom and also consider how hard it is in the recycling business because the true cost makes it not profitable

    Also consider all the added fees when you purchase something brand-new such as anything that is redeemable or anything that maybe Electronics where they want a flat fee for disposal charge at the point of sale.

    Of course those are the consumers that are paying and not the actual business.

    To beat a dead horse would also to include the government on infrastructure projects, half-assing all the time projects that are two and three times the same thing because they can't get it right the first time...... What's the true cost if you don't go in and do the full Road section brand new, quality everything and now maintain it...... never have to come back again in your lifetime except maybe for an overlay every 30 to 50 years...... But it's like they waste extra tax dollars on the 25%-40% increase in labor because they keep sending bids out for new little rinky-dink jobs on the same section of road where they could have did it all at once, sent out the crews all at once and they're done with it, but they like to split it up over a hundred years and set it up such that over those hundred years they have maybe 20-25 projects on the same section of Road.

    Fukishima,Japan & France (energy)

    Dams on rivers

    Anything subsidized.

    ReplyDelete

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