the u.s. government wanted to save money by closing some oftheir millitary bases
ID: 1237402 • Letter: T
Question
the u.s. government wanted to save money by closing some oftheir millitary bases throughout the united states. whilemany people agreeded that saving money was a desirable goal, areaspotentially affected by selection to close reactednegatively. congress selected a panelof people whos task wasto develope a list of bases that would close with legislationspecifying that congress could not alter the list. since the goal was to save money, why was this problem so hardto solve? the u.s. government wanted to save money by closing some oftheir millitary bases throughout the united states. whilemany people agreeded that saving money was a desirable goal, areaspotentially affected by selection to close reactednegatively. congress selected a panelof people whos task wasto develope a list of bases that would close with legislationspecifying that congress could not alter the list. since the goal was to save money, why was this problem so hardto solve?Explanation / Answer
One possible answer is that there are negative externalitiesinvolved. Externalities are unintended benefits or costs (forexample, a negative externality of driving is pollution andtraffic... they are unintended but they happen). Thus, the negativeexternality of closing down military bases might be less peopleliving in that area and thus businesses in that area taking a hit.This makes sense if you think about it... if you have a town with abig military base, you can imagine a lot of the businesses in thearea depending on these people for their business. If they closedown the base, then a lot of the people will leave the area andthus their businesses will take a hit. That's why a lot of thepeople from areas potentially affected by the selection reactednegatively.
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