there’s a negative externality of using up some of civilization’s finite productive capacity.
That’s a very unusual and IMO confusing framing of things. “negative externality” normally means things that impinge on others’ rights—pollution from making the PS5, for instance. “civilization’s finite production capacity” isn’t actually anyone’s right, so it can’t be impinged or considered an externality.
I’ve got no attachment to the phrase, I meant it in the sense of (From Wikipedia):
In simple terms, a negative externality is anything that causes an indirect cost to individuals.
I think e.g. paying for labor increases the demand for labor, thus increasing the price everyone else pays. That’s an indirect cost to them. I didn’t intend to make any claims about rights.
paying for labor increases the demand for labor, thus increasing the price everyone else pays
Yes, but they now have more money, so maybe the effects cancel out, globally. Locally, the person you paid has a bit more money, and everyone else is microscopically more poor (because it would be more difficult for them to pay that one specific person to do something for them).
That’s a very unusual and IMO confusing framing of things. “negative externality” normally means things that impinge on others’ rights—pollution from making the PS5, for instance. “civilization’s finite production capacity” isn’t actually anyone’s right, so it can’t be impinged or considered an externality.
I’ve got no attachment to the phrase, I meant it in the sense of (From Wikipedia):
I think e.g. paying for labor increases the demand for labor, thus increasing the price everyone else pays. That’s an indirect cost to them. I didn’t intend to make any claims about rights.
Yes, but they now have more money, so maybe the effects cancel out, globally. Locally, the person you paid has a bit more money, and everyone else is microscopically more poor (because it would be more difficult for them to pay that one specific person to do something for them).