More on the benefits of an oil-producer export tax

Yesterday, I argued for an oil-producer export tax. Such a tax would be the fastest way to combat global warming, both by reducing Amerikkkan consumption and by increasing reparations to be used for environmentally sustainable development.

Within context, an OPEC + Russia oil export tax would increase revenues without sending a price signal for increased production. As such, the export tax accomplishes goals that speculators might attempt via currency manipulation or investment in futures. These latter two means of boosting oil prices do send a signal for increased output, even if that signal is not dollar for dollar, and hence dimmed.

If done within the political context MIM Thought suggests, the oil export tax is especially affordable to oil-producers. In the first place, a one dollar increase in oil taxes does not displace one dollar’s worth of oil in demand. Bubba driving his pickup truck around five different states each week with hopes of impregnating five different sisters of his will pay more for gasoline and not simply give up driving on a dollar-for-dollar basis.

When such an export tax fails to bite Bubba, it does fail in reducing carbon emissions. However, the less that Bubba changes, the more tax money becomes available for reparations to the Third World including oil producer states that need to diversify in environmentally sustainable ways. We know that it is the national bourgeoisie and proletariat of the oppressed nations that has economic dynamism and those classes can do something with that money.

If Bubba does change, increased demand from the Third World may have made up the difference by that time. Furthermore, since Bubba won’t change on a dollar-for-dollar basis, if we assume 10 cents of downward change in demand for oil for every one dollar increase in taxes, the labor-diversified countries will find it well within their interests to make that 10 cents up to the oil-producer countries. In essence, it is a cheap way for the Third World to buy a long-run reduction in Amerikkkan carbon emissions. The Third World always has plenty of unemployed labor that can go to use making the oil-producer countries politically happy in this transition period of putting U.$. imperialism under control. In the short run, the oil export tax will place OPEC plus Russia at the forefront of environmentalism while gaining ardent support from small minorities of environmentalist activists in the rich countries. The oil-producer states should not miss a chance to tax rural Bubba’s ways.


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