Economics: Carbon Tax

The government’s carbon hatchling has began and the public opinion is taking its stand against the added cost of living. The main point of the tax is to ensure that polluters feel the pinch so that households and firms will adapt lifestyle choices.


However, let us splice this up abit.

1. Since the carbon tax is to allow consumers to feel the pinch, so that they may hopefully reduce the usage of emission technologies, should there not be alternatives first?
For example, if you have a rural dweller and he/she requires a vehicle to travel to transport goods into town on a regular basis;
And no assume that this rural dweller abides by the notion of this tax in that they reduce usage of their vehicle;
What alternative do they have to transport their goods into town? Where are the trains? Large transport companies may be an unsound financial option.

Hence, if the government wants to put a tax, the country’s infrastructure must provide its occupants with alternatives. This tax will not only increase living expenses, it will have ripple effects beyond any tangible accountability.

2. Another goal is to ensure that the global carbon emissions is reduce. And we all know that Australia has one of the biggest coal deposits in the world and Australia supplies the world with numerous amounts of resources.
The government claims that they should do their part as a global society to stop carbon emissions; so why not cap exports of certain resources to the biggest polluters in the world? If their resources to pollute are cut, will that not also not serve the same purpose?
For example, if China, of if the world’s biggest polluters, is capped supply of resources, they will be unable to pollute as much. In a sense, isn’t that a way of Australia helping globally?

3. The ETS is a great theoretical scheme, however, has the theory been fixed for market failures and market externalities? Would it not be possible for the big companies to purchase all the permits and thus monopolize the industries?
The government may step in to stop that, but MNCs will just produce below marginal cost for a period of time and run smaller companies out of business.

A neoclassical model is just here, however to what extent does either school of thought have jurisdiction is unclear.


Information. Interactions. Conditioning. Prediction. Intelligence

Intelligence has a wide spectrum of definitions.

Wikipedia defines it as:
Intelligence has been defined in different ways, including the abilities for abstract thought, understanding, communication, reasoning, learning, planning, emotional intelligence and problem solving.


The depth of how one considers another as intelligent is a subjective matter to which it is subjected to previous experiences and social conditioning.

If one believes the existence of ‘intelligent beings’ outside this world, one must consider the meaning of that term. It may constitute an entity that has one similar attribute that is unique to humans, our conscience and our ability to be aware of it.

A TED talk has subjected me to understand that intelligence is highly related to prediction.
So, what does prediction mean?

Let’s say a scientist; has a theory and creates a thesis to test, that scientist then tests his/her thesis and if it were to be as predicted, that scientist would be explicitly rewarded with something and be referred to as intelligent.

What about a financier? One may put money into a industry because they believe that prices will rise, thus again making a decision for a predicted outcome.

But what makes a prediction happen? I believe only gifted people are born with this skill, the rest of us rely on interactions. Interactions that creates experiences and a level of conditioning of what may or may not occur next. And thus a prediction.

One will interact with their environment and carry out an action, and that action will have a positive , negative or neutral response. Thus that person will use experiences gained from that response to make any future decisions.

But if we take it another step further, that actually really does not lead to prediction. Prediction entails the ability for a person to ‘connect the dots’ of other people’s experiences and predict an outcome that will suit towards one’s own advantage.

So, would you consider yourself intelligent?

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