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scoofyyesterday at 9:20 PM1 replyview on HN

Obviously the solution is to tax them instead of ban them so they end up dispersing income to the surrounding areas. The entire point though is that they won't get built where they are taxed, and eventually, through regulatory capture or governance capture, they'll get built without having to compensate for their exteralities.

The cynicism of residents is reasonable. They've have to be highly educated to actually understand the implications of what they're doing and how that revenue can be distributed. America's decline lends itself toward small-town corruption, where patronage is more important than communitarianism, due to large and accelerating net worth inequality, and an economy where outcomes are based on inheritance over labor.

This explains the logic behind an outright ban. You don't have to be vigilant about corruption and the principle-agent problem if the thing is just banned.


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order-mattersyesterday at 9:28 PM

>The entire point though is that they won't get built where they are taxed

I dont think this is entirely true. Maybe not the first wave of data centers, but there are a lot of factors that go into the cost calc and its possible that it would still be worth it to build them even if taxed.

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