[abvdasker]

In scenario 1, a corporation externalizes some of its costs. Those costs are then paid by people who may or may not actually use the corporation's product — people who never chose to be part of any transaction. This is coercive because the people paying for the corporation's externalities are forced to: they may not use the product, or do so to different degrees not proportional to the price they pay for the externality.

In scenario 2, the corporation does not externalize costs and raises their prices, offsetting costs by passing them on to their customers. The people paying the additional cost are those who know the price of what they are buying and willingly engage in the transaction for the good or service.

Do you understand why scenario 2 is bad and scenario 1 is less bad?

[littlecranky67]

That is just a very simplified and incomplete model. I never owned a car, so should I advocate to stop all fundings for streets? Well I consume products build by other people that use cars to go to work. Now, if I don't consume drinks of the Coca Cola Company, what if my cleaning lady enjoys those in her break? Direct vs. Indirect is not a good measure of value, PRICE is.

[abvdasker]

> I never owned a car, so should I advocate to stop all fundings for streets?

Streets are generally paid for by taxes, which are categorically different than corporate profits. In theory taxes are under democratic control. If you don't want to pay for streets you don't use, you can vote for a politician who passes that law. You have no control over the governance of a private corporation, but it can still pass its costs on to you via externalities (in the absence of regulations preventing it from doing so).

> Now, if I don't consume drinks of the Coca Cola Company, what if my cleaning lady enjoys those in her break?

What are you even talking about? What is the externality here? The wages you presumably pay your cleaning lady are hers to do with as she wishes.

[littlecranky67]

> don't want to pay for streets you don't use, you can vote for a politician who passes that law

Just as you can build your own power plant (solar, wind) if you don't like the electricity prices of your provider... That works in theory, in practice you will have to pay...