Showing posts with label tax. Show all posts
Showing posts with label tax. Show all posts

Thursday, 20 October 2022

A relook at global warming/climate change!

FALSE ALARM
How Climate Change Panic Costs Us Trillions, Hurts the Poor, and Fails to Fix the Planet
By Bjorn Lomborg

There is no denying that the world is getting hotter by the day. If we go by our life experiences, we do not remember feeling fearful of staying outdoors in the heat of the afternoon tropical sun. Fans were luxury items, and air conditioning was opulent at its height. 

In the early 1990s, I had the pleasure of meeting some guests from Dubai during a family function. I was surprised when they started complaining about the Malaysian weather, specifically the heat. Living in a desert country, they were complaining about the Malaysian heat. When enquired, they unanimously admitted that because of the architecture and setup of their infrastructure, they were nicely shielded from the blazing desert sun. That carries a significant weightage in how we handle climate change, according to this book which gives a different outlook on how the world should looking this problem. 

True, human activities and fossil fuels are contributing to our degradation of the environment and the loss of the greenhouse effect and all the things we are familiar with. The approach to dealing with it is the author's bone of contention. 

Take the instance of the yellow jacket showdown in Paris. They are the unhappy product of the European carbon tax system. The French ruling party believed it was criminal to use fossil fuel as it polluted the environment at this time and age. The government imposed a high levy on petroleum to discourage people from using private vehicles. It was their wish for the public to use Government-subsidised public transportation. Well, it worked fine for urban dwellers. For the farmers in the outskirts who solely depended on their beaten-up cars and tractors for work and transportation of their produce, it was a hit before the belt. At such challenging times when production costs are already so high, the rise in petrol price is a double whammy. Hence, the uprising. 

Generally, humans tolerate heat better than extreme cold. Around the world, more people die from cold than heat. People have to spend more to keep themselves warm. Coincidentally, fossil fuel is needed for this purpose. If poor people resort to burning wood for cooking and keeping themselves warm, their health will be affected by the emitting soot.

What people need is resources (read finances) to uplift their lives. They must improve their living conditions to keep themselves cool when their living space becomes warmer. They need money to be able to afford air conditioning, fans and other means to make their living area bearable. People at the lower rung of society bear the brunt of the effects of climate change. They can ill-afford houses on higher grounds to avoid the impact of rising sea levels. 

If rising levels of our oceans are going to flood many low-lying areas, it is up to governments to build dykes, like the ones in the Netherlands, to protect the affected people. For that, countries have to prosper. 

If cutting carbon emissions is implemented so strictly, it will prevent newly industrialised countries from catching up with the rest of the developed nations. Wealthy nations handled adversities better than despotic third-world countries. The very nations that need assistance to pull themselves out of poverty will be trapped in the quagmire of poverty.


Chincha Island, Peru.
Pregnant with guano.
Sometimes, the world forgets that the human race is a resilient lot. They would not have become the most dominant species on Earth if not for their resourcefulness. Just see how fast we come up with solutions for any problem. Some time ago, we thought profound starvation would hit the world as the soil gets progressively depleted of its nutrients. The only known nitrogen-based soil fertiliser then was the progressively depleting bat-dropping reservoir on Guano Islands off Peru. In came Haber, who literally plucked nitrogen from thin air to make fertilisers via Haber Reaction. Of course, that led to other disastrous outcomes too. Now, we have malnutrition of the overfed kind.
With time, humanity can come up with ways to combat weather change. They can migrate to temperate countries. Different crops may be grown. In time to come, rice may grow well in Europe, or wheat may grow in what is now tundra land.

The author highlights that the occurrence of natural calamities has not really increased in intensity or number over the years. The publicity highlighted by the mass media makes it appear bigger than life. Fatalities naturally increase as the world population has jumped in leaps and bounds of late anyway.

The world's obsession with preventing temperature rise has diverted money away from what could have been used to develop industries, increase innovation and improve people's standard of living. After all, our civilisation is deeply rooted in energy. Climate change is real but let us be pragmatic about it.



Saturday, 2 February 2019

Bleak future ahead?

Bleak Future Ahead?

The Financial Curse (2018, Nicholas Shaxson)
How and Why Global Finance Makes Us All Poorer

Being rich is a curse. When an impoverished third world nation gets a potential windfall, its leaders will become greedy and would want to usurp all the richness fo themselves, their family members and cronies. When a prosperous nation (read former Imperial power) has access to wealth, nothing is ever enough. After living in comfort with a particular lifestyle for all these while, the national coffers are forever in the want. In both cases, the average citizen is at the receiving end. He is the one who has to tighten his belt to meet the demands of the rich and those in power.

The world is ruled by bankers. Ever since banks started functioning and people developed the insatiable appetite for money and megalomaniac industries, these cherubs with horns have been in action. Through slews of business manoeuvres, the creation of shell companies, accounts in tax havens, the evil empire of bankers, auditors, accountants, and politicians have created a smokescreen to hoodwink the general public. Many ventures are proposed to the leaders of nations, both small and big, to invest monies. With legitimate approval of the people, using rhetorics which naturally hide many detrimental clauses, the self-serving leaders dupe their citizens to sign off the national wealth to finance megaprojects. These projects, failing to live up to its expectations, had to be bailed out. Where does the money come from? From the already impoverished people of the state, of course.

The philosophy behind the banking seems to be, "give the people a longer rope, easier for them to hang themselves", meaning lure than more than they can pay. "Heads we win, tails they lose" is another one of their mantras. 

It is a paradox. Amidst the sea of plenty, poverty is widespread. Smart people who are very capable of bringing ground shattering breakthroughs to the society are by lured by the glitz of the financial market. Science and technology which had brought many positive changes to mankind take a backseat whilst they use their intelligence to re-package debts into yet another money-making scheme that is bound to fail. Of course, this would happen after enriching the wealthy and eventually, the taxpayers would end up paying up for the debacle.  The wealthy, however, would have their cash stashed nicely in the numerous countries whose existence is to be a tax-haven to crooks. 

It is an open secret that these shelters are aplenty - the list goes on and on; Bahamas, Panama, Luxemburg, Cayman Islands, St. Kitts, Lichstentein, Jersey and many more. 

The City of London is controlled by a group of businessman, bankers and accountants who primarily run the city like an independent state. They elect their own mayor, Lord Mayor of the City of London. This is an apolitical appointed post. The Lord Mayor represents the city at the Parliament. This post is not to be confused with the Mayor of London. Interestingly, the people who elected the Lord Mayor's position include businesses from Communist China who heavily parked their spare cash to splash into capitalistic ventures elsewhere. Through the City of London, Britain is building its Second British Empire.

We are living in a material world, that more one where everyone lives and spends money that they do not own. And the bank loan money that they do not have; print money that has no value. The financiers of the world control the media, showbiz and telecommunication. They dictate what truth is and what is fake news. People buy their stories and get fascinated with mundane things like what the Kardashians are up to!

Economics as we know it has evolved over the years. We are still trying to understand how it works. It seems that every model introduced by man fails because it cannot satisfy the greed of man. From one where the economy is controlled by the 'invisible hand' - the market to laissez-faire one to one with government supervision, now we have countries competing with multinational companies to thump their invisible fists.

Expansion of businesses made giant mergers inevitable. Unfortunately, it is also accompanied by undercutting rivals through monopoly. It is alright if mergers mean more employment and return of investment through taxes back to the society. Unfortunately, profits find their way to off-shore accounts. Smaller retailers go bust. It is affluence on the outside by poverty of majority.

The state of the economy is pathetic at best. Outsourcing was supposed to cut costs, but it does not. The only beneficiaries seem to be lawyers, bankers and consultants who still get their fat cheque no matter what. Instances of megacompanies going bust with preceding years of a clean bill of financial health endorsed by the infamous big accountancy firms are aplenty.

All these things are nothing new to the average Malaysian. Recent events before the 14th Malaysian General Elections peeled open our eyes of ignorance on the scandalous nature of the union of politicians and businessmen. It is akin to asking Big Bad Wolf to take care of the sheep and Little Red Riding Hood.


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“Be afraid. Be very afraid.”*