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Thursday, July 28, 2005

Zero-sum game green economics

It is said that the economy is not a zero-sum game. But what if we consider the economy within the ecosystem where it resides? Producing goods always needs energy and natural resources through negative externalities, so it will damage the environment. If the economy wins, the ecosystem loose. Is it always like this?

Well, not always. Information services, like software and culture (what I consider services and not goods to sell and buy; see free software and free culture) require almost no natural resources aside energy for computers, wich can be taken from renewable energy.

So, what is the part of the economy that is a zero-sum game. Mainly, the natural resources? Of course someone can discover a new oil field, but it is still a zero-sum game if you consider the humanity alive now together with future generations.

That's why natural resources must be highly taxed with a Land Value Tax. Those who exploit them are taking their profit from you and me, from our grandsons and granddoughters.

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