January 25, 2008

Nattering Nabobs of Negativism

Critics (e.g. of the Stern Review of the Economics of Climate Change) say that a carbon tax of a few percent would be an economic catastrophe. Let's examine the recent past. In January 2002 the price of crude oil was $20 a barrel. Recently oil sold for $100 a barrel, an increase of 400% over five years, yet the economy has survived. More than that, the gross world product has grown by 35%, from $49 trillion in 2002 to an estimated $66 trillion in 2007. Therefore a strategic question. Is it better for you to give money to the Saudi royal family or to invest it in local infrastructure, through taxes, in the form of say public transportation and energy efficient buildings?


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