29 June 2011

Will the Carbon Tax enhance our economic freedom?

It seems that there are many benefits flowing to people who live in societies that value and encourage economic freedom  (lid dip to Glenn Reynolds). 

A carbon tax seems inimical to more economic freedom. It raises the cost of energy. It requires a large and intrusive bureaucracy to collect and administer it. Business has more red tape to comply with. There are redistributions and reallocations of wealth that are susceptible to gaming.

How can the risk of taking such backward steps in our economic freedoms be considered worth it for the seemingly very remote possibility that taxing carbon dioxide emissions might help slow global warming if other nations do it too? Especially whilst the rest of the world just looks on?

Only people who put a nil or low value on economic freedom would be likely to treat such a trade-off as worthwhile. They do not seem to realise just what a valuable thing it is that they are imperilling with their fanciful hope of global climate salvation by introducing a local carbon tax. 

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