This is a term from the field of economics. An externality can be positive or negative. Stated in very simple terms, a negative externality is the unintended and unwelcome consequences in a capitalist society for those who are not part of a business transaction, the bystanders (the third party). At the macro level, the bystander can be society and the cost of the negative externality that results from a given profit-making activity of a business ends up being borne by society. In other words, where a society “willingly” puts up with negative externalities (mainly because the government refuses to regulate businesses effectively because it is too closely allied to them) it allows businesses to increase their profit margins at the expense of society—meaning of course the citizenry. A good example of a negative externality is environmental pollution generated by a business, such as, for example, an electricity producer who uses coal-fired power plants that release pollutants into the air. Here is another example (but this time instead of turning to economics we turn to every day interpersonal relations): smoking. When smokers smoke in the presence of non-smokers, they create a negative externality with their activity because it results in harm to the non-smokers (depending upon the duration and frequency, ranging from secondhand smoke inhalation to plain inconsiderate annoyance). From the perspective of a democracy, the net effect of negative externalities that result from capitalist activities is to degrade the quality of life of the citizenry, thereby undermining authentic democracy.