Monday, April 25, 2011
The Carbon Tax Re-Explained (Libertarian Edition) Part 1
In this post I will re-explain why a carbon tax is a good idea, but this time I will refute the arguments of my Libertarian friend. First my friend said that a carbon tax only worked in Sweden, because Sweden is has a very capitalist economy. That isn't completely true. First Sweden has the second largest tax burden in the world, and over 80% of it's workers are unionized. The Government of Sweden doesn't allow the free market to go anywhere without intervention. My Blogger friend also said that Sweden had lower growth then other Scandinavian countries. This isn't true again. When a Carbon tax came in place in Sweden in 1991 the Swedish economy was valued at 258 billion and right before the recession the economy was worth 458 billion the growth of Sweden during these years was 78%! Other Scandinavian countries like Norway grew during the same time period grew by 276%, but Norway was the first country in the 1990's to instate a carbon tax. That only leaves Finland which doesn't have a carbon tax and who's economy at the same time as Sweden and Norway grew about 116%. So clearly even with a carbon tax an economy can still grow.