Friday, November 21, 2014

Environmentalism Reconsidered – The Narrative and its Origins

Environmentalism Reconsidered – The Narrative and its Origins


Urban Perspective

Prior to expounding the virtues of nature, people need to spend a few days in the rain. Most people of the western world today live in isolation from almost everything they depend on for survival. The largest portion of our population lives in urban settings of offices at optimum temperature and homes with thermostats set at comfort. Food is accessed in a similar manner, clean perfect environment no fuss no muss. Homes they live in and all that has gone into the construction of those homes, find little room in the psyche of people whose life experience has generated a complacency that is absent in even the most elementary concerns related to the earth, wind and fire. This populace is fertile ground for miss information, absent the witness of nature’s immense capacity to exist and create, having never really been exposed to nature absent a means of retreat to relative comfort, people can be convinced of nature’s fragility where in fact resiliency and power exists.       

Nature’s perfection constrained the minds of the essentialists in the past and a similar mode of thought is constraining us presently. The essentialists viewed nature as the perfect condition, unchanging from a point of origin. This view served to detract from their ability to observe the dynamic at play with nature and confounded their ability to respond to the natural world effectively. Similarly, the environment movement now is contributing to a “perfection in stasis” view of nature, which is preventing progressive use of the natural world. Dialogue between children and their keepers reveals the prevailing view that nature has wisdom. This is a dangerous ideal to allow to exist, as nature is a series of events that occur on such a massive scale they are nearly outside perception. There are patterns that emerge as the multitude of existing things react to each other, in the same way, a river finds patterns in response to the various geophysical influences. The water and the physical world react to each other to trigger events, neither the water nor the physical world holds wisdom. This seems blatantly oblivious, yet the idealist view of a wise nature is prominent and is gaining more prominence as people propagate this distorting doctrine.

The inclination to revert to an angelic past where the world was harmonious and humans existed as one with nature resides deeply in the culture of many in the preservationist wings of the environmental movement. The point that needs to be made sharply is, that the angelic past is absent in history. Human existence is better now than it has ever been because of the mastery of our environment, and nature has changed, as it always has and always will. While seeking action in compliance with nature, humans should seek to expand their lot to become even more the master of their environment.

Sustainability and the power of apocalyptic thinking.

Sustainability is the most prevalent word in the contemporary lexicon related to the environment. There are times when we can actually measure sustainability, in the case of harvesting a forest we can calculate, based on historical data, the rate of growth of a given forest type and then harvest at a rate within that rate of growth to achieve a “sustainable” circumstance. Often the word is used in broad terms however, “the way we are using the earth is unsustainable” like somehow the world is ending – it is all running out. This brings a whole new level of dread to the human psyche. A narrative is developing that says that by our very existence we are contributing to our own end. This is bringing about a drive to acetic existence; unless we cease the utilization of all the comforts the mastery of our environment has provided, we are contributing to our end. To model the sum total of human endeavour is certainly outside the ability of any mortal, to model the universe and its limitations or potentiality, is most certainly outside the ability of any mortal. So why has the assertion that what we are doing on earth is unsustainable, been considered valid? Every bit as the valid it the assertion that the earth is a robust environment of massive resources able to provide humans with abundant life. Why are we hampering our society with a psychological hobble of unsubstantiated limit, when there is a track record now of a steady upward trend in human existence with nature functioning and providing.

Sustainability is really a moving target, the land base required to support a hunter-gathered population is far greater than a land base required to support a comparable population with agriculture. The determining factor in this regard is technology as it relates to effectively harnessing natural systems. It is important to note, that if the human population had stayed constant at any point in time, modern agriculture technology would facilitate the utilization of a smaller and smaller portion of the earth’s surface for sustenance. Modern technology is a friend to the environment by increasing the productive intensity of every given acre under cultivation. Granted the collective effect of technology, in general, has facilitated more people to feed, that fails to diminish the fact that technology serves to satisfy human requirements in the context of the environment at large. To date, technology has always addressed sustainability by providing humans with more effective ways to utilize natural systems. If at any point in time this ceases to be the case, then the massive forces of nature will dictate the outcomes, then maybe the preservationists will have their way and the Anthropocene will be over.

Much of what feeds the human psyche is the realization of our end. We accept that at the moment we’re born a process is started that will result in dieing. We know this to be a fact. This reality resides in an almost denied manner within us and finds expression in every step we take. The perverse attraction to apocalyptic narrative comes to form the resignation, collectively as humans, to our own end, apocalyptic belief is massively rational to humans because it is so deeply rooted in stark fact. The devastating end is so deeply enshrined in the human mind and this allows devastating projections to find sympathy with humans and is a powerful influence over us. This reality provides a rational basis for irrational belief, feeding the willingness of people to accept the dire predictions of doom that flow from the influencers of the world. This “negative ad campaign” that is assaulting our way of life is having a negative effect and needs to be countered; countered by enlisting dread as a companion to the positive message of abundance. We can fill whatever collective prophesy we choose to propagate, propagate the apocalypse and you may get it, believe as I do in mother earth’s abundance and it will be provided.


Environmentalism Reconsidered - Agriculture the realities of scale

Environmentalism Reconsidered - Agriculture the realities of scale



“It took some 10,000 years to expand food production to the current level of about 5 billion tons per year. By 2050, we will likely need to nearly double current crop production again.” Norman Borlaug received a Noble prize for his contribution to the green revolution. He is probably the most deserving recipient of a Noble Prize of any, as modern agriculture has saved more lives than any other human endeavour. He helped to father the modern agriculture complex that supports humanity today.

When one listens to many in the environmental movement, modern agriculture instead of being lauded as humanity’s greatest achievement is demonized. While modern agriculture has negative impacts and there are elements that need remediation, it is on the whole a laudable human endeavour. Agriculture is an example of how human intervention can augment natural processes to create a more productive ecosystem. Agriculture is an integral part of the environment that has taken natural systems, enhanced them and fed millions who would otherwise have been subject to starvation and all the resulting scourge that accompanies starvation.

In reviewing literature from organizations such as Greenpeace and other’s, I find them advocating “small farms” for the world’s poor to grow their own food. They are advocating subsistence agriculture as the solution to world poverty. Extending the means to someone to simply subsist in the name of the environment is cruel at least and slow-motion genocide at worst. The land allocated to subsistence agriculture exacerbates the hunger and poverty that exists, as it fragments the land base into small portions unable to access the scale that provides for the efficiencies that have driven the green revolution and all the benefit that has accrued from it. In terms of providing food, it is better to retire people trapped in subsistence agriculture, provide them with the food they require and distribute via market process increased production from the application of modern agriculture taking place at scales which generate inherently superior productivity. The environment is better served and the population as a whole is better fed.          

The same romanticism that resides in the minds of sentimental preservationists, that has them seeing the world bounded by limits and nature as being fragile, has them viewing the bucolic rural setting with mindless nostalgia. I share the appreciation with of the evening sun’s long shadow cast across rolling hills with the red barn and the gentle twitter of happy children at play in the backyard. Having been born on a farm where my family worked together, I often yearn to retreat to that very setting. I know, however, that the new family farm has evolved it an agro enterprise and that new structure is what is providing the production necessary to supply 6 billion mouths. In addition to just providing food, the agro complex is delivering food to North Americans at approximately 10% of disposable income, contributing to the overall economy by leaving funds for discretional spending in the hands of other families. The family farm is an important accruement to the world’s economy, a family farm that profits the family on the farm as opposed to the family farm that indentures families to a life of subsistence. When people extend subsistence to the third world as a solution, all the while lapping up first-world amenities, amenities lavish and accepted in almost apathy, it is offensive. It is apparent that in their pursuit of environmental “sustainability”, they are seemingly content to adopt a policy that would have all people reside in a state of unnecessary subsistence.

Are there aspects of modern agriculture that need to harmonize with nature, absolutely, there are unethical applications of technology that threaten the very people they are intended to serve. Means are needed to be accessed to subdue methods that are damaging to the natural world and to people. The requirement to pursue methods even more in league with nature is pressing and comfort can be taken in the great advancement that is being made in this regard. The environment movement needs to press for progress in the context of agriculture that takes place at optimum scale and resist the temptation to find the solution in processes that ignore the progress and contribution of modern agriculture. There are instances where small is better, there are instances when big is better; the key is executing at optimum scale.


Thursday, November 20, 2014

Environmentalism Reconsidered - Scarcity Doctrine


Environmentalism Reconsidered - Scarcity Doctrine 



It is the intention of writer to bring to light to a corrosive element that has appropriated the environmental movement in a manner that has the environmental movement in conflict with the western mode of life. In doing so, this corrosive element is undermining support for the valid efforts of the environmental movement and impairing important change, while attacking the most liberating and vital element of western life, a market-based economy. Environment, prosperity and liberty are ours for the taking if we embrace the sheer abundance of the earth and shun with vigour the indoctrination of scarcity that is being propagated by the subversive redistributionist elements. These elements which have co-opted the environmental movement are elements subversive to people’s efforts as environmentalists and subversive to our way of life and the two’s interaction. The concept of “scarce resources” flows from the school of economics, it is amazing to me how so many people who promote themselves as “green” have appropriated scarcity to service their view on redistribution under the vale of “environmental necessities”, and yet, somehow managed to ignore the abundance the rest of the school of economics addresses. Scarcity then has blended together under the two banners of social activism and environmentalism. In the first case, it is a red herring and in the second it is damaging to the cause.

Scarcity has found prominence in the human psyche because the human psyche has evolved in a position of ignorance to natural processes and hence in subservience to nature. Scarcity comes naturally to humans because hitherto it has occupied much of human existence. Even in times of human abundance, humans find comparative scarcity. The environmental movement is capitalizing on the human inclination to accept scarcity as a reality, what they are failing to realize is that people will accept scarcity in abstract terms; however, when scarcity takes action and people are faced with a reduction in living experience, people will repel scarcity and the environmental moment with it. Environmentalism must be presented and actuated, in the spirit of and with the acceptance of the presence of abundance, to find resonance with the population.
  
In the world of Environics scarcity lives large in the lexicon and finds expression in terms like “we need to respect the earth’s limits”. Limits occupy the minds of the enviro-economist, every expression of concern that emanates from them seems to be preoccupied with limits. This is evident in the “solutions” they propose. Often when there is a suggestion to utilize resources, it seems there is a misguided person opposing it on the limits of nature, as their minds have been bathed with an interpretation of reality that inaccurately limits human action as a result of misperception of the earth’s capacity being finite as a provider, when infinite abundance is the fact.

Scarcity is a tool used by redistributionist elements to justify redistribution itself. In believing the pie is a fixed size they justify taking from people with wealth to give to the people absent wealth. In reality, however, the pie is infinite and persons absent wealth are better served by the expansion of the pie and wide access, than by redistributionist policy.

The environmental movement’s desire for conservation has been appropriated and transferred to the scarcity doctrine by the redistributionists. This action serves to attract people to their cause under the guise of environmental concerns when equality concerns are at the heart of their action. One can debate the appropriateness of equality as a laudable societal goal, what is outside debate is the negative effect it is having on the efforts of the environmental movement. As one who shares the environmental concern, I reject outright both the effectiveness and premises for redistribution; so this element's presence in the ranks of the environmental movement repels me; a source of remorse given my alignment with many aspects of the environmental movement.      

When you examine the “solutions” to “problems” posited by many people associated with the environmental movement as with the redistributionist movement, you find scarcity at the root of their thought processes, resulting in them suggesting constraint of human action as a solution. They want to move us to have and use less. Prudent use of resources is wise, if you need to drive to the hospital use a smart car, but go to the hospital. The environmental movement wants to constrain human action, fly less, see less and do less. Certainly, if you can have a wonderful home and can heat it more efficiently, you should, the environmental movement is all too often saying, to do without the nice home. Certainly, there are facets of consumerism that are frivolous and their adjustment would serve all concerned. This is hardly a basis to rebuke a mode of interaction that has provided us with historically unparalleled abundance, that mode of interaction being trade supported by a market-based system. The legitimate concerns of environmentalism are being challenged by allowing the anti-market economy movement to attach itself to environmentalism’s shirttails. The perception by people who believe in a market economy as the engine for society begins to attach rhetoric that attacks their way of life with concerns expressed about the environment. The environmental movement needs to bring resolution to its message, specifying issues of nature in a manner that both allows others to “do business” and engage in actions in accord with nature's demands.           
         
The sum of human action is without limit by our natural environment. Humanity's opportunity for an ever richer existence is omnipresent. The environmental movement is fostering a narrative with scarcity at its core when we exist in the ambit of abundance. The answer is outside the cessation of natural resource use, the answer is pursuing a philosophy of abundance with action in accord with nature. Nature is changing, the Anthropocene is here and humans are the catalyst of change. When the sun sets at the close of every day, the world will be different; this is in most cases good. Adroit human action will change the face of the earth while pursuing ever-better circumstances for humanity. So by pursuing the multitude of human values, many of which have nature as their genesis, humanity can have abundance in accord with natural requirements. 
   
There exists an infinite supply of energy. Carbon is our friend. Coal is an excellent source of energy. Three statements that would be considered wrong by conventional wisdom in the context of the public at large. A public inculcated by a readily absorbed narrative of “the limited environment” would treat this as heresy. The fact is terawatt after terawatt is entering our atmosphere daily. The fact is carbon is our friend; it is the building block of life. Coal is an excellent source of energy. We need only to apply ourselves to the task of developing technologies that allow access to these boundless realities in a manner that is in compliance with the environment at large. 

Choosing a lens to view the world and issues affecting the world is critical to the culture that will ensue. When a lens of scarcity is placed on an issue, all actions are directed toward claiming possession of resources. When a lens of abundance is placed on an issue, all actions move toward expanding resources. When the belief that the earth is a place of abundance and alignment is sought with that abundance, the discourse turns from one of staking territory to one of generosity. The financial market lends affirming testament to this reality, when people believe collectively that markets are ascending, a prosperous circumstance ensues and by contrast, when people see scarcity, an impoverished circumstance ensues. This cycle of abundant belief and scarcity belief osculates constantly as the abstract measure of human endeavour, the marketplace, gives expression to human perception. As the inclination toward scarcity is so strong in humans due to their evolutionary backdrop, extreme efforts needs to be activated to bolster a view to abundance and with this view as a convention, abundance will emerge – this is the self-fulfilling prophecy of abundance. There are two truths relating to environmental stewardship that need attention. Firstly, the earth is an abundant provider with massive capacity and secondly, natural systems (of which humanity is a part) are in constant change. Today’s beautiful mountain is an erupted volcano tomorrow or today’s caterpillar is tomorrow’s butterfly.

The much-maligned market economy, inadvertently maligned by environmentalists and intentionally maligned by redistributionists, really is a thing of beauty. The gestalt which has as its parts, democracy, a market economy, the work ethic and healthy self-interest has given us in Canada an abundance absent in human experience, and that prosperity is gradually spreading to the rest of the world. In areas of the world where other systems have been at work, humanity lives at the whim of state and tyrant, where environmental degradation has been the rule as opposed to the exception. Compare the United States' environmental record with the Soviet Union, neither is perfect, one is just better than the other’s.

Scarcity is the Environmental redistributionist manifesto, Marx and Engles wrote the communist manifesto to promote access to a fair life for the working peoples of the world, a noble work that ended up promoting a dysfunctional mode of governance. It’s safe to say Marxism was high jacked in much the same way as the environmental movement is being, Marxism by totalitarian authoritarians and the environmentalism by the totalitarian authoritarian’s precursor, Marxists activists. Equality is a stupid goal while equity is a laudable goal. Equality forces the ambitious to pay for the less ambitious and forces the less ambitious to engage in life at a tempo they would rather avoid. Equity ensures fair treatment regardless of a person’s chosen life cadence. Society and all its component parts when equitably applied become the sub straight of a liberated person’s chosen life; as a piece of paper is a sub straight and we all may choose to commit to it what we will. Deeply embedded in the environmental movement are social engineers, they are eager to impose scarcity on us all in the name of social justice and “the environment” is their cover. They say to impoverished persons in the emerging world, accept subsistence as your life’s lot as the world is a basket of scarcity. There is another message for the impoverished and that message is that the world is an abundant place and we are seeking to give you access to it. As human beings, we owe that to each other.

The Canadian narrative has taken many turns holding to a base of modest and unadventurous in many respects. The mass introduction of scarcity to the Canadian narrative will serve to bridle the minds of our people and impair their progress. The narrative of scarcity and the assault on the foundation of Canadian success, the marketplace, will turn our country’s minds away from respectful fruitful human endeavour seeking harmony with natural processes, to one of consternation and constraint truly putting us on the road to subsistence.        

The concept of the 100 hundred mile diet is laudable in its spirit. The spirit of reducing foods' carbon footprint, while sometimes true it is often untrue depending on the product in question. The side benefit of the 100-mile diet is it promotes local agriculture and related cottage industry, which is an asset to any community. The assertion that we should all seek food in close proximity to our place of residence is flawed for a number of reasons. Often the production environment for food is more favourable in other jurisdictions, requiring fewer inputs to produce, even considering the transportation carbon emissions, the food imported has a smaller carbon footprint overall. This is often the case and each food product needs to be judged on its own merit, in this way the100 mile diet can be detrimental in the context of reducing carbon usage. To advocate contraction of human endeavour as a solution to anything is errant, it only serves to reduce the opportunity for access to abundance and solution. Only by broadening our scope of action technologically, geographically and spiritually; by reaching out to all in the universe and drawing on every human thought, every religion, every mode of action, and every unique ecosystem do we find for all of humanity and nature, health and abundance. When a person’s words have in them "limit", explore the extremes of that thought process, if somebody suggests living on food from within 100 miles, how will your life be when they find a way for you to limit your food collection from a square foot. The world’s regions offer us abundance in different forms, by accessing the whole world; each region’s strengths find complementary expression in the world as a whole. This reality provides us with unimaginable abundance, when I walk into a grocery store the entire world’s bounty is represented there. The most important point here is, more than pleasing my pallet, the important point is that by accessing regional strength efficiency ensues, and in "efficiency" conservation resides and in this case, conservation provides access to abundance. It takes less energy to grow a tomato in California and truck it to Vancouver in December than it does to grow a tomato in Vancouver in December. The carbon footprint of a leg of a New Zealand Lamb is smaller in London than an English leg of a Lamb in London.

An interesting mental exercise to illustrate this point; imagine the world absent state borders and under the direction of a single democracy such as Canada which facilitates a globally similar living standard. In the absence of national interests; where would people live, where would they mine, where would they log, where would they grow food, where would they do all the things they do. There would be very few people in Canada because living here is expensive relative to more temperate parts of the world. Manufacturing would occur in temperate areas where people could live inexpensively and less energy was required in heat manufacturing facilities. The examples are endless, but by removing yourself from nationalism and the constraints of borders, you can begin the un-bias contemplation of where activities are more logically suited to occur. While a world under Canadian management is a pleasant thought, it is unlikely to occur any time soon, what can occur, however, is a moderated reality that seeks optimum utilization of the earth’s resources within the provisions of statehood. We are able, through organizations such as the World Trade Organisation, to orchestrate better use of the earth's resources in a manner that harmonizes human action with the natural attributes of all regions' environments. The unfettered flow of the substrates of life gives birth to the highest and best use of the earth’s resources, the closer we can move toward a free flow of goods and services, the sooner that humanity as a whole will achieve environmental congruency with the earth. Remember, the earth is a single entity without the ability to distinguish China from the USA, the earth functions absent political bias and is one unified ecosystem artificially segmented by political borders.

The unfortunate reality at the moment is that energy is purchased by currency as opposed to being a currency. If the world’s currency were energy, then the natural attributes of the globe would enforce behaviour consistent with less energy use and hence fewer carbon emissions. The unfortunate reality is that we measure human action in currency and human exchange motivated by currency is distorted by national interest and distortions that emerge from government regulations. While global trade is certainly a boon for the environment, even in its present state, the world’s asymmetry of prosperity is conspiring to distort human action in ways that are energy inefficient. It is the asymmetry of prosperity that causes the miss creation of goods in one area of the world when the goods would be better created closer to their user. One influencing factor, among many, is that the labour cost savings in one area of the world are greater than the additional energy costs to transport the goods.

It is the asymmetry of prosperity that is inhibiting the free flow of goods and services throughout the world and the resulting environmental benefits, as people correctly fear the erosion of their living standards. Ironically, it is the free flow of goods and services that will if permitted to take their course, facilitate the homogenization of prosperity worldwide. This reality may find expression if western governments mitigate the displacement caused by the reconciliation of the asymmetry of prosperity. In the free flow of goods and services, environmentalists find resolve through the most prudent deployment of resources and the redistributionists may find equity, if not equality, as the dynamic of world trade takes prosperity around the world. It seems ironic when considered in this context that there is opposition from both groups to liberalized trade. It may be the opposition from the environmental movement is caused by the presence of the redistributionist elements influence, because rational thought on the part of environmentalists would have them seeking the most eco-efficient means for people to garner goods and services. 

The above discussion considers carbon emissions in the context of the traditional utilization of hydrocarbons, which has inherent in it the releasing of carbon from vast reserves of ancient energy. If we tighten the carbon cycle so that carbon released today is absorbed tomorrow, perhaps through the use of biofuels, then the above point is maybe muted somewhat in the context of energy, but still remains sound in the context of overall utilization of resources.

The environmental movement needs to address outcomes and focus on objectives. Sure, pursue a given action on the land; just meet these objectives for the natural environment - rather than permeating the populous’ consciousness with tie-raids on the evening news exclaiming the coming environmental apocalypse, the very same apocalypse I heard them warning about 25 years ago. I wonder how rational people get influenced by people who can exclaim straight-faced that construction of a small hydro project is going to spell the end of a liveable environment for the world’s wildlife, when in fact constructing a small hydro project has the potential to enhance the habitat for wildlife and create carbon-free power. The environment, far from being degraded, is merely transformed and enhanced to serve humans and potentially other flora and fauna as well. If people associated with the environmental movement would engage people with objectives to meet that are absent values that are excessively taxing or stemming from values associated with aversion to change in the context of athletics, the general population would be more eager to extend credence to their assertions. In the 1970s I heard people from the environmental movement predicting we would be out of oil by 2000 and the planet would be uninhabitable. Of course, 2000 came and went and the world was fine, needing some adjustment of course, but fine nonetheless. Given the aforementioned points and dynamics, when a just environmental concern is presented, the message is met with a jaundiced eye.


Environmentalism Reconsidered

Environmentalism Reconsidered 


This is the first in a series of blog pieces that offer a new way of contemplating environmentalism so please allow me to premise all of the following comments by acknowledging the necessity for humans to integrate their actions with natural systems. There have been damaging effects requiring address from the industrialization of the world. To think human actions, as humans now exist, can occur without effecting change on the plant would be lunacy. As human understanding continues to grow at a startling pace, greater opportunities are presenting themselves that will permit us to enjoy abundant lives in harmony with natural systems.  

Having been born on a farm in British Columbia and then through the course of my working life being exposed to the natural world, the state of the environment is a point of concern and contemplation. The environment, particularly as it concerns humanity’s healthy existence needs to take priority in the minds of the entire world’s population. A bold and “truthful” assessment of the environmental situation needs to occur. Focused debate on the next steps toward human harmony with nature still needs to take place. While there is consensus that the environment is challenged; the rhetoric we are hearing from the extreme elements of the environmental movement is questionable at best. It’s apparent at times there is a religiosity associated with some in the environmental movement, accompanied by the indoctrination of recruits rather than their edification. This is evidenced by the hostility encountered at the mere inquiry as to the credibility of claims forwarded by some.   

Nature to me is the smell of pine drifting across my path on an August day in the high country. The smell of fresh-cut wood is pungent in contrast to ambient fragrance. Nature is alpine flowers in July, ephemeral beauty. Nature is the excitement, as a flicker of a whitetail passes from view. Nature is hours spent astride a horse and watching the county pass by. Nature is the bite of a cold winter wind, the shiver from early spring rain. Nature is bold beautiful and powerful, comforting and intimidating. I’ve spent my finest moments in life at the whim of nature, a crisp October morning giving way to an afternoon’s nap against a south-facing rock. I’ve quacked at the rustle of a bear in the bush. I wondered to find my way when a flat piece of the county on a cloudy day stole my sense of direction. I have spent time with nature and felt bound to it and grown to love it, making an emotional bond. I feel I understand it and appreciate it as well as anybody. Given this intimacy I’ve developed with nature, when I hear someone speak of protecting “nature” my ears prick up. When, however, I hear someone prostituting nature to promote bygone political objectives, I become deeply offended. 

Far too often I’ve turned my head toward individuals expounding with save the earth rhetoric from the heart of urbansville, only to hear every word they say underpinned by an ulterior motive. When they say “cap and trade”, they really mean enforce monetary equality. When they say “100 Mile Diet” they really mean down with world trade. When they say “community-managed forest” they really mean stop logging. When they say save the earth, they really mean stop everything, freeze it all, stop society dead in its economic tracks. The constant salvo of urbanized thinkers trampling on the progress of humanity in the absence of an aft-ward glance is offensive and most certainly frightening. As Winston Churchill said, “the further back you look the further ahead you see”, and when I look back to when nature had its full sway, humanity was a small ship on a rough ocean. The modern world has brought both promise and pearl to be sure. The reality is we are the earth’s stewards now, and we are expanding, and we need to harvest nature’s generous bounty. Nature exists in a changing landscape; a new road can be viewed as a scare or as a mode of transport. There is a critical balance to be had to be sure, one needs to be cognisant of the result of our actions, but action is necessary; more than necessary it is exciting and filled with opportunity. This opportunity needs to be pursued with a clear mind, however, informed by clear information. The environmental message has lost resolution and fidelity, as it has been appropriated by social interest.          

The modern western population is now predominantly urban people who possess an idealistic view of nature. In grade school, they were told about the “balance” of nature, how, as a rodent population exceeds its food supply and they die off from starvation, and other examples of predator populations declining in response to predator overhunting of prey. Nature is a mass of happenstance and these are examples demonstrative of inherent imbalance as opposed to balance, anthropogenic interventions in the form of mindful stewardship can mitigate these fluctuations by integrating natural processes in human action. Anthropogenic intervention can enhance natural processes through the course of human endeavour. The view of human activity on the ground needs to be transformed in the minds of people, from the shroud of detriment to the realization human endeavour is integral to natural systems. A road built blind to the requirements of nature is a scare on the land; a road built mindful of nature serves to enhance human endeavour and maintains or enhances natural processes. We can harmonize our actions with nature; that should be the focus, rather than having social engineering take us off course.  

The Dali Lama teaches us to “avoid putting a goat's head on a yak's body”. This is precisely what many social activists are doing to the environmental movement – perhaps the social activists are best regarded as wolves in sheep’s clothing. The wolves are the authors of the environmental manifesto and the builders of the road to subsistence.  

It is my desire to move the environmental movement's thinking away from obstruction to participation, from scarcity to abundance, from analysis identifying problems to their massive brain trust in finding solutions. The only way to change humanity's dependence on fossil fuels is to find a solution, free unlimited energy will render fossil fuels obsolete and provision for abundance.


The problem with Carbon Tax


$30 / tonne may translate to more or less than 2% at the point of consumption - the concept holds true.

The problem with Carbon Taxes is that they are implemented with a critical misperception – that, as in British Columbia’s case, a 2% Carbon Tax will deter fossil fuel use. When attempting to deter use of fossil fuel by increasing price, a large percentage - like 20% - will deter use, but only to a point because very soon demand for fossil fuel hardens or becomes “inelastic”; there is really a very small amount of discretionary fossil fuel consumption in society as a whole. We know this is true because there is a hundred years of price sensitivity data that shows it to be true. British Petroleum did extensive price sensitive analysis in England, drawing on data from the energy crisis era. In a country, that at the time had food costs at nearly 40% of disposable income, gas prices doubled and demand only for gas degraded slightly, but in the main held steady. Carbon Tax is a very weak deterrent to consumption and to be used as a deterrent to consumption would require economy slaying prices to work.


If Carbon Tax is being implemented as a means to manage the negative externalities that flow from fossil fuel use, the Carbon Tax is a means to garner funds, in the same way that we tax liquor to manage negative externalities flowing to society from its use. If the Carbon Tax is a means to finance transition from a Fossil Fuel regime to another energy regime, then it works. The important point here is that Carbon Tax is just another way to get money, linking the funds collection for Carbon mitigation activities to fossil fuel use really has no rational basis, given that the tax has very little affect on consumption.    

Wednesday, November 19, 2014

Government - Resource Dependence & Big Government?

Excerpt - If this is substantiated by events - maybe the rest is true. 

Canada is a resource-rich country, unimaginable wealth is ours to use to build the most advantaged society on earth. An occurrence of grave concern is the liquidation of assets to fund government operations. This is the equivalent of a farmer selling his/her land to buy fertilizer, soon the farmer will run out of land to fertilize. The federal and provincial governments are presiding over the liquidation of non-renewable resources as fast as the market will purchase them. This is fine as long as the revenues this generates go to the establishment of other capital assets, but it is presently going to fund the operations of the government. Sell a million barrels of oil, build a hospital – ok, sell a million barrels of oil and pick up the garbage – not ok. Inherent in this reality are massive structural deficits. Take government revenues from taxation ONLY and if operating expenses exceed that, you've got a structural deficit – presently most governments in Canada see royalties from the sale of raw resources as a legitimate source of funds for funding operations. The funds from royalties should be going toward long-term infrastructure and the development and enhancement of human capital.



In business, a company’s actions are constantly rationalized to the dynamics of the market in the pursuit of profit. The expansion of administrative costs in a company sees an almost immediate effect on profit and ownership seeks to rectify the situation. The time span of realization of error is crisp, the line of accountability clear this generates a circumstance where the organization responds quickly and effectively to frivolous and extraneous costs - the larger the organization the more muted this response becomes.

The nature of our political system generates a circumstance where the three contributing factors in favour of private enterprise, work against the government. In a company when an error in spending is made, the reporting structure sends information immediately to a concentrated entity - management and ownership, which responds. In government when an error in spending occurs, the time it takes for the people affected (the taxpayer) to realize it, events have extended beyond effective response. Worse, there is every incentive for the people who made the decision to conceal the event, as the individuals executing the error are financially unharmed by the event and can only be negatively affected by the public knowing. Further exacerbating the situation is that the reporting structure of the government is arcane which mutes the resolution of the event in the context of accounting. It is in this atmosphere that poor practices and waste continue in government, increasing the cost of services and exacting a greater and greater toll on the taxpayer. This phenomenon is attributable to the size of an organization and in equal measure to the nature of government having an inherent challenge in this regard.

All matters of human exchange involve a transaction. Contemplate your daily life and count the number of transactions you make through the course of your day. If for every $10 purchase a $10 bank charge was levied on the transaction, you would have half as much money to pursue life. This is the exact circumstance most of us living in Canada, where for every $1 we make the government takes $1. As government burgeons, there is an exponential increase in cost to the taxpayer. As government grows, so too does its involvement in all exchange. Transaction costs that emanate from government-mandated requirements to utilize other services, the $1000 conveyance fee to transfer a house, the airport fee, the list is frighteningly immense. These represent transaction costs that serve as a drag on the actions of the population – retarding citizens’ ability to provide for themselves and retarding the ability for people to utilize resources for enterprise, leaving the government with a smaller, heavier taxed tax base. This is the vicious downward spiral that causes the government to cave in on itself, like a snake eating its own tail.

As government grows and extends greater control over the human exchange, a policy requiring licensing comes into play. A driver’s licence is a document that indicates competency around the operation of a motor vehicle and is relatively benign as its access is determined by the ability to pay and competency alone. There are other cases, however, where government licensing has other motivations and unintended consequences. In the case of licensing of frequency for broadcasting, licensing was originally required for the management of frequency – to avoid one broadcaster interfering with another. As time progressed licensing progressed under other motivations. Naturally, an incumbent broadcaster wants less, rather than more competition and would lobby the government to preclude new entrants. Government itself openly admits in its literature that it uses licensing to restrict the supply of broadcasting services. When government takes actions which distort the natural ebb and flow of business, the consequences are almost always negative. In the case of broadcasting, lower numbers of people restricted the supply of advertising raising the cost of businesses to promote themselves – ultimately increasing the cost of goods and services as the media spectrum of the offering was limited. People have been forced to consume media content of inferior quality and interest. While it is appropriate for government to seek to offer strategic direction- meddling with distorting micro policy is most inhibiting. The government in this case should seek harmonious utilization of the airways and allow the market to work.                   

Tax policy in Canada is very complex so there is an extreme cost to the citizenry, firstly in negotiating the maze of tax policy to minimize payment and secondly in the actual paying of the tax. Complex taxation policy, in and of itself, increases transaction costs, and worse, is the waste of human capital taken in administering taxes. The complexity of the system takes some of our best minds away from productive contribution to society to attend to the analysis of complex policy to determine the most beneficial “interpretation” of tax legislation, while some more of our other best minds at Revenue Canada are taken away from productive pursuits to devise ways to respond to the interpretations of the first group. All this intellectual capacity is wasted; it is hard to imagine a more destructive way for the government to conduct itself. By simplifying the tax system, this waste is reduced, government requirement for enforcement is reduced and a retraction in government operating costs effects a positive situation by reducing tax requirements – a positive cycle is initiated. Opportunities abound to reduce the complexity of government and hence the cost of government. This is just the tax system; contemplate the legal system and any of the other multitude of government services. Government is too important to allow actions that serve to damage its own long-term standing.

Canada is a resource-rich country, unimaginable wealth is ours to use to build the most advantaged society on earth. An occurrence of grave concern is the liquidation of assets to fund government operations. This is the equivalent of a farmer selling his/her land to buy fertilizer, soon the farmer will run out of land to fertilize. The federal and provincial governments are presiding over the liquidation of non-renewable resources as fast as the market will purchase them. This is fine as long as the revenues this generates go to the establishment of other capital assets, but it is presently going to fund the operations of the government. Sell a million barrels of oil, build a hospital – ok, sell a million barrels of oil and pick up the garbage – not ok. Inherent in this reality are massive structural deficits. Take government revenues from taxation ONLY and if operating expenses exceed that, you've got a structural deficit – presently most governments in Canada see royalties from the sale of raw resources as a legitimate source of funds for funding operations. The funds from royalties should be going toward long-term infrastructure and the development and enhancement of human capital.

There needs to be an apolitical rationing mechanism that limits the growth of government so that government and economy are optimally matched. The challenge we face now is that governments are strongly incentivized to spend more, more as a percentage of GDP, in the quest for public approval. We elect a government on how best to administer public resources and choices related to this task need to reside with elected officials. There are objective means to assess the optimal size of government, within reasonable variance. The size of government is determined by the size of the budget at any given point in time. In the same way that the central bank has a narrow set of parameters to set interbank rates at arm’s length from the government, so too could a “Budgetary Review” official have a narrow set of parameters and function at arm’s length from the government to set the size of the budget.

As stated before, there is a point where the government is an organ supported by the people as an entity unto itself – rather than being the facilitator of human exchange, it becomes the focus of the national endeavour. It is then like the proverbial snake eating its tail – a circumstance that is clearly unsustainable. Canada has a productivity deficit; perhaps we need look no further than the overall transaction cost that is government to find the key contributing factor.  

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