by rockdoc123 » Wed 07 Nov 2012, 19:48:00
$this->bbcode_second_pass_quote('', 'H')eh, imaging that, a site centered on the idea of depletion and depredation of the "commons" that you'd find people more concerned with protection than it's exploitation.
I believe the problem is that there is no means by which a more socialist approach can result in the types of changes that need to occur in order to affect a concerted move to alternatives. With the right kind of incentives I think that your average capitalist business man could achieve this if the right rules were also in place. The government in it’s quasi-socialist approach already tried this with solar companies….huge fail. And precisely how does a socialist approach protect hydrocarbon resources any more than a capitalist one? Are you suggesting that a country full of socialists would no longer consume hydrocarbons and be intent on keeping what is in the ground there? Didn’t work in Russia, doesn’t work in Venezuela either nor mainland China as far as I’ve seen.
Ibon, I may live in Canada now but I have also spent time in Latin America..Colombia, Peru, Argentina etc. I have a pretty good handle on the demographics there. As you say Canada is a completely different environment although the cultural diversity in some of the big cities like Toronto is much more than just Asian and has been for a long time. My point is the disparity between the poor and the rich in the US is much smaller than the disparity you see in Brazil or many other parts of Latin America. In Venezuela you have people living in straw huts in the bush with subsistence economy and billionaires living in Caracas. The poor in big cities such as Chicago would appear as royalty to someone from Amazona who has never owned a pair of shoes. The same in Colombia and Peru. Argentina is probably closer in terms of the income/wealth gap but that country is a great example of a failed socialist economy. There comes a point without an underlying strong economy that social programs can’t work. Let’s look at the example of Venezuela. Here Chavez has taken all the proceeds from the extensive oil and gas fields that he nationalized and distributed those monies into his social programs, seemingly to keep his popularity strong. But to do that he has not been investing back into the oil fields or infrastructure in the country. As a consequence the oil fields are failing badly (I hear this directly from Venezuelans who work for PDVSA) and people who live in the cities are left with closed bridges and roads, hence the discontent you saw going into the recent election there. At some point because of lack of investment the oil fields will not be able to provide the kind of free cash flow needed for the social programs. It just seems to be something that is not self-sustaining. If Chavez, on the other hand had foreign participation where he kept the lions share of the returns but had the foreigners spend all of the required capital it would be a different story…but of course that is capitalism and a no no, apparently.
And vision master the whole idea of capital gains tax deductions and other tax deductions is to attract money that can be invested and hence help to improve the economy through direct and indirect job creation. Example Joe Blog is only taxed at a rate of say 25% on his capital gains but at a rate of 35% on his income. As a consequence Msr. Blog will tend to put his money to work in investments that yield capital gains. Those same investments are companies that when flush with capital will look at growth which creates jobs both directly and indirectly through the trickle down effect. The gains to the country from this reinvestment is much, much larger than the gains from additional taxes, taxes which might not be even collectable if that individual decides to do something else with his money rather than invest in the market (eg. may he would buy some nice propety in Belize...that money is now lost to the American public). This isn't an entitlement for the rich but rather a sound means of creating investment in the country.