SUBSIDIZED TRANSPORTATION CONTRIBUTES TO THE WORLD ENERGY CRISIS.


The transportation-subprime-credit-real estate bubble-dollar-oil-commodities-agricultural-inflation-globalization crisis is one global crisis. It is not just a world financial crisis. In truth, as the long list of dimensions that are impacted indicates, it’s a world economic organizational crisis. In a nutshell, an inefficient world economic system reigns (because of obsolete imperial reasons). It turns out that we need more efficiency, so the entire system has to undergo a metamorphosis. And yes we can.

 

Transportation provides with an example of disorganization. Transportation has been kept completely distorted, it is much cheaper than it would be if all its real costs were included. The mantra has been for decades that developing countries should depend upon imports, produced in the richest countries (supported by enormous agricultural subsidies from those rich countries, and vast amounts of chemical fertilizers ruining their ecology). That economic exploitation scheme required cheaper transportation than its real cost would allow. That sleight of hand was hidden in a number of devious ways below the carpet of innocent looking conventional economic. Military might of the richest countries implicitly enjoined many poor countries to squander their energy reserves ASAP. Other means of keeping transportation costs artificially low were direct. Not only many countries (~ 50) subsidize fuel, but air travel is subsidized, be it only because jet fuel is not taxed (worldwide). Everything else is taxed, but not that great greenhouse contributor. And one looked somewhere else as cheap, extremely polluting, “bunk oil” was used in maritime transports, impressively polluting both seas and air.

 

Depending from far away food sources was a disaster for the poorest countries, depriving them of agricultural jobs and exports, besides making them into impotent beggars. The success of India and China is directly related to the fact they did not buy that humiliation, and achieved economic independence through autarchic government directed efforts.

 

Another example of worldwide economic disorganization has been the belief that a worldwide plutocracy was the best engine for worldwide growth. That has led to all sorts of inefficiencies. And it led to a destruction of fairness, by taking out the progressive tax system (that all countries espouse, but that the worldwide plutocracy easily eschews, by playing them against each other).

 

It is true that the expansion of international trade is necessary. African peasants are best at local agricultural production, and they should be able to export it, to have their economic place on this planet. But the African peasant, an expert of sustainable agriculture, cannot be expected to develop advanced materials withstanding controlled thermonuclear fusion. So it makes sense that the peasant would exchange the plants and fruits he grows against advanced technology developed by others, who had the opportunity to get acquainted to the most advanced scientific knowledge since the age of two. International trade is about best using the planet workload capability. It’s a requirement of worldwide fairness and thrift.

 

But, for the free market to work, all real costs should be included, and this starts with real transportation costs (including the cost of the devastation burning carbon brings), and the cost we all bear for the worldwide plutocracy (that, among other things, has driven up the worldwide real estate bubble). The true currency of the world is energy, and economics has to be rewritten that way.

 

Patrice Ayme.

http://www.patriceayme.com/index.html

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