And how to gauge a country with these three factors? (Part 1)
Oil: Is sovereignty, people & wealth meaningless?
Why do countries exist… as separate entities… ? To have their own land & people so that they can produce & control their own wealth - especially through their currency — for the wellbeing of their people. Then why do countries price everyday oil, which goes into everything as energy, in terms of foreign currency (dollar)… subjugating themselves, their land, people, and wealth to a currency that is not theirs… ? Since everything is linked to energy, change in the price of oil hits our savings, stock markets, inflation, currencies… and everything of value we have or we will build… further, worsened by imposing heavy taxes on oil… that are anywhere between 20% to 95% of the cost of the actual oil itself.
Oil continues to be one of the highest hidden tax we all pay… both directly and indirectly as it inflates the cost of most things we consume by 10–50% or more. The taxes on oil are regressive meaning the poor pay proportionately more than the rich, as a percentage of their income. The countries are forced to charge tax that hurts the poor more than the rich… as the tax collections from the rich are often inadequate or under-charged. This not only creates capital concentration & inflation over a period of time…but also institutional dependence on “easy” oil taxes… making it hard for countries to wean from oil… even though oil destabilises the very economy & habitat we need to live & reproduce.
Is electric the future? Is clean coal, nuclear, or hydrogen an answer… ? Maybe, but there are other easy & immediate solutions… that will not need a reinvention of the industry. What are these… ? Has any country actually pulled off a meaningful wean from oil in mankind’s history… ? During the oil shock in the 1970’s, rather than go to war one country built a nationwide ethanol production & distribution network in few years over a landmass equal to the continental US. Today, 73% of 33 million cars in that country run on ethanol… Brazil. It goes unknown that most modern cars can take 20–30% ethanol without any modification and can run on 80% ethanol with minor changes in engine settings. The internal combustion engine was designed on ethanol not gasoline.
Do we know anything else that costs us 10 to 20 times the production cost & may be diminishing our sovereignty, fake inflating economies, eroding our savings, hindering our freedom & destroying our habitat…? With the oil price plummeting rather than talking about benefiting from cheap oil… is this the right time to diversify from oil…? As the tax revenues from oil will anyway be lower due to low base prices & low consumption?
Replacing oil or lowering the taxes on oil, would be the biggest & most effective stimulus & blow to the virus… This will lower country’s cost of supporting their populations, help people build savings… and eventually increase county’s competitiveness. The time to do this is now while the habitat/planet heals & people are convinced compassion & care are the only way forward… from this pandemic.
Part 2 & 3: Taxes and Pleasure to follow. Disclaimer: We are not related to oil & gas or sciences or tax policy in any manner nor such any association is implied. Information not to be used without independent verification by users. Analyses based on publicly available information that is widely accessible on the internet. No accuracy assured. Originally published on Beautiful Presentations | Studio https://www.linkedin.com/feed/update/urn:li:activity:6663080317642948608