Monday, July 14, 2008

Poor people can't worry about global warming

Poor people can't worry about global warming - Telegraph
Headline number one: raising the tax on older cars hits poorer drivers hardest.

Well, who would have thought it? Almost anybody actually, who had asked the question: "Who is most likely to own an older, cheaper car?"

How could anyone - let alone the elected members of a governing party whose raison d'être has been to represent the interests of the poor - not have deduced that raising the Vehicle Excise Duty on cars that had been purchased years ago would be likely to fall most heavily on those who were not rich enough to replace their cars every year?

Headline number two: the use of crops to produce biofuels is a direct cause of world food shortages and so is responsible for starvation in the developing world and escalating food prices in developed countries, thus helping to further pauperise the poor of every nation.

Who would have guessed? Well, almost anyone with even a basic understanding of how markets work - which supposedly includes every active member of the Conservative Party, and most of those who count themselves as New Labour, too.

If you introduce incentives for switching what were once staple food crops to the production of fuel - guess what? - the amount of acreage dedicated to growing food is reduced.

And, all together now, what happens when you reduce the world supply of a commodity? You've got it. You've mastered the first chapter of Economics for Dummies.

Neither of these outcomes can even count as an unintended consequence of policy: so blindingly, luminously clear was their inevitability that we have to look for some explanation that goes beyond incompetence or shortsightedness among our own (and much of the Western world's) decision-making class.

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