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Paying for Port Security.


This is in response to "Port Security Should Get Priority Over Road Work" (May 16). We never cease to be amazed by people's willingness to allow the shipping industry to externalize externalize

see exteriorize.
 its costs onto the public. The cost of security arises from the business operations Business operations are those activities involved in the running of a business for the purpose of producing value for the stakeholders. Compare business processes. The outcome of business operations is the harvesting of value from assets  of the industry and should be paid by that industry. Anything else distorts the business model and artificially lowers the cost of imported goods, with the inevitable results for U.S. manufacturing businesses and our balance of payments.

The same holds true for the billions of dollars of health care costs externalized onto the public through the thousands of tons of toxic, carcinogenic carcinogenic

having a capacity for carcinogenesis.
, diesel emissions generated by the ports every year, for the wear and tear on our transportation infrastructure, the costs of traffic congestion The condition of a network when there is not enough bandwidth to support the current traffic load.

congestion - When the offered load of a data communication path exceeds the capacity.
 and the costs of blighted communities bordering the ports. Never mind the additional billions they want us to spend to expand the "goods movement" infrastructure.

Taken together, these externalized costs make the shipping industry the most highly subsidized industry in California.

Sen. Alan Lowenthal Alan Lowenthal (born March 8, 1941 in New York City, New York) is a member of the California State Senate.

Alan Lowenthal was elected to represent the 27th District of the California State Senate in November of 2004.
 is on the fight track with his bill to introduce "user taxes," but the numbers we have heard are low by at least a factor of 10.

Only when businesses pay for all of the costs arising from their operations will we have truly rational pricing Rational pricing is the assumption in financial economics that asset prices (and hence asset pricing models) will reflect the arbitrage-free price of the asset as any deviation from this price will be "arbitraged away".  and business decisions.

Noel Park

President

San Pedro and Peninsula Homeowners' Association
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Article Details
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Author:Park, Noel
Publication:Los Angeles Business Journal
Article Type:Letter to the Editor
Date:Jun 6, 2005
Words:232
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