Tuesday, October 28, 2008

Oil Slavery

They argued strenuously against the end of slavery. If slavery ends, the economy will take a dive because it will cost more to make everything. That's why we had slavery for so long - for the good of the economy. And then we took the moral high ground and ended slavery, and an amazing thing happened - the economy didn't tank. Human innovation kicked in - the industrial revolution took hold - and we created new techologies that were far more efficient than human labor ever could be.

We are hearing the same cry for low oil prices. If we tax oil too much, the economy will take a dive because it'll cost more to distribute everything. That's why we're still dependent on foreign oil - for the good of the economy.

But what I believe is that if we ever want to get off of foreign oil and decrease our carbon emissions, we have to tax oil. Stickers that say "Buy local" and suggestions to "carpool" only go so far. As Thomas Friedman said, we saw real change in behavior when gas hit $4 per gallon.

I think we need to increase gasoline taxes, while cutting payroll taxes. Think about it - right now we're taxing people for working (which means businesses can hire fewer people), and we're keeping taxes low on oil which is putting our country in jeopardy both politically and environmentally. The incentives are all flipped around! It's not a matter of raising taxes on the American people; it's about being more strategic in what we tax.

We need to get out of our own way when it comes to green innovation - just like how we had to end slavery before farming innovation could kick in.