Ecological Awareness

Daniel O’Connor has posted a very good article clarifying the elements of environmental economics and Decision-Making. It concisely defines all the troublesome aspects of economic decision-making in the pursuit of a sustainable economic ecosystem (one which can propagate itself over and over so as to avoid Resource depletion). He outlines the problems of achieving a fair distribution of economic benefit, so that while social classes will still exist, economic oppression will be minimized. My Take on this Issue remains what it has always been: an informed Tax policy rigorously enforced will produce the best result.

We must devise a sustainable economy for Our progeny, though some of Us older often wonder why. Greg Mankiw will be immediately amused because of his promotion of the Pigou Club, but taxation must extend beyond the simple precepts of the Pigou Club. There must be a Mining Tax, and One imposed upon the Consumers of mined materials of all types, not just on energy or materials in shortage. It must be a Business tax, a Surtax upon Production which overuses set industrial standards established by the Taxing agent. I would advocate a 9% Mining Tax on all mined material used in Production, with a 1% increase in the Surtax for every 5% use of mined materials above 12% of all materials used. This places an obvious premium upon reclamation of materials (a boon to Everyone, not just Junkyards). There will be much Comment that the added Taxes will only be passed on the Consumer, but that is exactly this Author’s intent.

An effective, enforced Tax schedule applied to Product Durability must also be applied in my estimate. Business Production will be taxed (by added percentage increase on Production Income tax) based upon the durability of the manufactured Products. An Example: A pair of denim jeans whose average Product life does not exceed 3 years will pay an additional 8% in Income tax. Some would say 8% is too high a added Tax, but it seemed to me to be a relevant Surtax for provision of inferior product anywhere in the Economy; negating the increased Costs of quality Product provision. Product Durability Schedules would be set by industry experts paid by the Industry Associations themselves, but requiring appointment by Congress. These Committees or Commissions would set industry standards which had to be approved yearly by Congressional Committee after Expert testimony Hearings.

An equitable Tax policy obviates much of competition between Private Sector and Government policy decision-making debates. Testing procedures for Products would be set up by industry experts and Standards set, but under the supervision of Government to insure Consumer protection is paramount. The Economy is redirected towards a more ecologically-friendly economy closer to sustainability, while Business does not have to bear the total burden for the Shift. lgl