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You’re a Mean One, Mr. Pigou

You’re a Mean One, Mr. Pigou

It’s the last shopping weekend before Christmas. Fittingly, this adaptation of ‘How the Grinch Stole Christmas’ is circulating around.

He had to stop Christmas from coming, somehow.
He asked and he questioned the whole thing’s legality
Then his eyes brightened: he screamed “externality!
He reached for his textbooks; he knew what to do
He’d fight them with ideas from A.C. Pigou
This idea has merit, he thought in the frost
A tax that was equal to external cost
At the margin, would give all the Who girls and boys
An incentive to stop all their screaming and noise
Failing that, an injunction to make them all cease
And they’d have to pay him to have their Roast Beast.”

It’s pretty clever, I’m sure it will be a classic among econ wonks and … well, maybe not children.

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