COMMENT

The unintelligent way in which the economies of the world are run - to say nothing of dumb decisions in commerce and politics - bring about the easily predictable chaos which we see now developing around us. The push for “growth” while urging economy in the use of resources, recycling and the rest demonstrates the remarkable ability of leaders to look both ways at once. Needless to say, the simple inversion of value added tax (raising identical revenue from consumption rather than production) is no nearer nor are measures of “quality of life” to replace those of “economic growth” by which we are destroying our biosphere.

There can be no “recovery” to former consumption patterns which saw the exploitation of an estimated 7000 years of the Earth’s capital reserves every day. The classic capital - labour polarisation has been increasingly inappropriate in a world led by consumption rather than production and aspiring to the elimination of privilege. We therefore have an opportunity to benefit from the current economic melt-down to ‘invert’ the old left-right politics and emerge with the up-down orientation of environmentally conscious and democratic civilisation.

The Resource Economics Proposition...

... “Inverts” the classic economic production equation - which has been inappropriate for developed nations economics for nearly 60 years - and puts a consumption equation in its place (proof: IJES, 1980, Vol. 15 pp 287 - 292: “The Dynamic Economy” and other publications). It works by replacing all taxes on work, profits and effort, with a single tax (UNITax: unified national indirect taxation) raised on the heat value (NOT the money value) of all primary energy entering the economy. Tax cost is “fiscally neutral” falling on consumption (so saving the planet) and is therefore automatically geared to life-style, income and property without paperwork. Compensations are: (1) a basic income (BIDS: Basic Income Distribution System) phased in as income taxes are ended (also replacing nearly all “social security” and state pensions operations), (2) a UNITtax on the energy content of all imports and a UNITax rebate on the energy content of all exports (SPEC: Statutory Primary Energy content comparable with  present VAT but far simpler) and (3) in the advanced phases, a land duty at the standard unitax rate raised on a registered land factor related to solar potential (SLAD: Solar Land Area Duty). See: Sustainable Taxation etc.etc.

Political bonuses: balanced budget; cuts CO2 emissions, eliminates tax evasion, benefits the environment - all by incentive and cost free.