I don't understand why globalism rarely, if ever, factors into the debate. It boggles my mind that if I walk down to the drug store to buy a toothbrush that toothbrush was likely made in a Chinese factory, shipped across the Pacific ocean in a diesel-spewing container ship, and then driven a good thousand miles in an 18-wheeler. It seems like a tremendous waste of energy for something that could be made locally for c…
I understand that price doesn't take externalities into effect. That said price is the best way we have to allocate resources - it conveys that information better then any other tool we have. If price indicates to people that toothbrushes should be made in China and shipped to the U.S. then I tend to think that's probably the most efficient way to do it.