The macro-economic birds-eye view says that it doesn't matter if we give billions in subsidies (free allowances) to BP and Exxon (or utilities that are burning coal) rather than to the American people. This is looking at "costs" but not "transfers." I think it is stupid to pre-distribute 40 years of allowance value. When Congress created the Federal Reserve, they didn't pre-set interest rates for the next 40 years. Anyway, the political alliances are too fragile to last, and the edifice will crumble under its own weight. And I won't cry for you, Economists. It's time to value people, not corporations. Three cheers to the Nobel committee for recognizing this with the recent award to Elinor Ostrom.
Our goal is to drive up the costs of fossil fuels, but Exxon and BP will invest the ridiculous windfall profits in climate denial and purchasing Congress following the "Citizens United" ruling. We may need to form a Citizens Energy Consumer Cartel to bargain with OPEC and Exxon and BP. This new cartel will say, we'll let you have rising prices in the face of our falling demand for fossil fuels, but we'll need to divide the windfalls and much of it will return to the people to help us make the changes we need to make.
Sure, they won't like it. They may scream socialism, etc. They may flood the airwaves and fund retrograde candidates. But this is a battle for democracy, the Earth, and civilization.
Thursday, May 20, 2010
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