Economic externalities are mainly discussed in environmental economics, but they can be applied to labor issues as well. The market principle is a natural law and cannot be resisted. If that market principle creates a problem, then the problem, or external diseconomies, should be internalized in the market. During the Edo period, Heizo Hasegawa not only cracked down on criminals, but also provided vocational training for the unemployed and even provided opening costs. We have to follow his example. In this paper, I will discuss these two points.

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