Billions wasted

I've been working on climate change policy, and encouraging a cap and trade system which auctions (sells) permits to companies, and uses the money for public goods (renewable energy, transit, research and development of new technologies), and to compensate consumers for fuel price increases on a per capita basis. Sounds good, right? It could raise $2 or $3 billion per year.

Other people are emailing me, saying, "Oh, we need a carbon tax, it'll solve all of our problems." It'll raise all this money and help with the transition. Well, a carbon tax would have to be very steep to change any behavior. Politicians are not into raising taxes, they lose elections for doing that. But even more important, let's look at a few numbers:

$504 billion. This is the money spent on the war on terror and Iraq between 2001 and 2007.

$344 billion. This is money spent on the Iraq war. Not counting the current $100 billion pending before Congress.

$213 billion. Cost of the War on Terror in 2006 alone (Rumsfeld's last year in office).

$2 trillion. Possible total long term cost of the Bush wars, once you count veteran's benefits, health care for all the soldiers with injuries, disabilities, Gulf War II syndrome, etc.

(These figures come from a USA Today article "Researchers weigh war's other costs", January 31, 2007)

In some ways, we don't need a cap and trade system, or a carbon tax. All we need to do is move all those war costs into renewable energy, energy efficiency, and a new war on climate change. Yeah, let's use the National Guard for its true purpose, to guard the nation (climate change is the biggest threat facing humanity and 50% of all species on the planet). Of course, a cap and trade system that refunds money to consumers through a rebate/dividend/share would be nice too. But the $3 billion versus $300 billion gives us a little perspective about how we do things when we think they are really important (the military-industrial complex) versus just give lip service, so that the Rumsfeld Invaders Blog will go away and leave us alone.

I want to hear 2008 candidates say, "Capitalism 3.0."