The other day I was talking with some students here at Herstmonceux Castle about the various field trips that are planned for each of the courses. I was telling them that the economics course is going to visit Transport for London to talk with them about London's congestion charge, about how it is implemented, and about how effective it is or isn't.
[In economics, this charge is a classic example of a Pigouvian Tax]
One of the students reacted with horror about the congestion charge. I asked, "What's wrong?"
She replied, "Well, I just don't think people should have to pay to drive in the city. That doesn't seem right."
It is this belief that policy-makers must cater to and which encourages too much congestion, the under-pricing of water, and attitudes toward health care.
Fortunately she seemed to accept the idea of the tax when she realized that people had plenty of options -- taking the tube or the bus or walking or bicycling. But if these types of options were not available, I doubt if she would be willing to accept a straight-forward Pigouvian Tax on much of anything.
We have so much work to do....