1. Please explain any value-added comments/ insight and questions you have to the discussion below.

Mal (2023), in an article published by modern diplomacy news, discusses the concept of the capitalist market and how it is leading climate crisis that is threatening human well-being. The article illustrates that the primary goal of such a market is short-term benefits that lead to the development of negative externalities, such as the production of greenhouse gases that contribute to climate change. The environmental components, such as forests, are considered public goods as no one has full ownership (Mjmfoodie, 2011b). However, such right leads to market failures as private entities do not consider their impacts on public goods (University of Maryland, 2023b). A negative externality to the business leads to a loss in the long term if the relevant stakeholders do not instill correct measures (Mjmfoodie, 2011c). Climate change is an example of a negative externality (Shapiro et al., 2022). It leads to depleted resources, reduced well-being, and economic instability as more money is injected into correcting the negative impacts.

Externalities that negatively impact public goods are correctable through government impositions, such as increasing taxes depending on the level of emissions (University of Maryland, 2023a). Also, subsidies can work by promising to lower taxes for the companies that show improvement in environmental protection and correction of market failure (Mjmfoodie, 2011a). The primary aim is to have a sustainable balance between capitalist markets, the environment, and the social needs to enhance an economy focusing on short-term and long-term benefits.