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by rhygar
5276 days ago
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The cost of this is a loss of jobs for sign makers (and their suppliers), marketing agencies, and a loss of income for new businesses (and their suppliers) that want to make their presence known. Basically, the economy in that city is worse off overall as a result, and there are fewer jobs to go around. |
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Increasing the amount of advertising redistributes value instead of creating new value. It's a classic example of a prisoner's dilemma. Everyone does better individually by advertising more, but when everyone advertises more they do worse.
From the perspective of society, money spent on advertising is almost entirely wasted. It could be better spent on other things, like making air travel cheaper.
I know advertising does have a useful purpose: a mechanism to inform people about things they didn't know. But the amount of advertising necessary to achieve that purpose is minimal. Creating laws that limit advertising to that minimal amount is a net benefit to society.