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Cake day: July 5th, 2023

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  • Seems like there’s truth to that:

    Following the eruption of the Korean War, US President Harry S. Truman dispatched the United States Seventh Fleet into the Taiwan Strait to prevent hostilities between the ROC and the PRC. The United States also passed the Sino-American Mutual Defense Treaty and the Formosa Resolution of 1955, granting substantial foreign aid to the KMT regime between 1951 and 1965. The US foreign aid stabilized prices in Taiwan by 1952. The KMT government instituted many laws and land reforms that it had never effectively enacted on mainland China. Economic development was encouraged by American aid and programs such as the Joint Commission on Rural Reconstruction, which turned the agricultural sector into the basis for later growth. Under the combined stimulus of the land reform and the agricultural development programs, agricultural production increased at an average annual rate of 4 percent from 1952 to 1959. The government also implemented a policy of import substitution industrialization, attempting to produce imported goods domestically. The policy promoted the development of textile, food, and other labor-intensive industries.

    From: https://en.wikipedia.org/wiki/Taiwan?wprov=sfla1
















  • I think you hit the nail on the head. More and more I think this is exactly the problem. Carbon taxes especially become a problem when the individual has no good alternatives to switch to. One obvious example is commuting by car and public transit. People should feel encouraged to switch to public transit by the policy. Except public transit is so inadequate in most of Canada that it’s simply not a realistic option for many if not most. If you’re an individual in that situation, you’d feel the carbon tax is just punishing you with no action you can take to make it stop. The only lever left to them is the democratic lever and they’re gonna pull it to make it stop. I think you’re right that the focus of the carbon tax should be on industry alone. Companies are much more likely to have ability to do something about their carbon output as well as to be able to act rationally on price signals. In order to address individual-level emissions, other policies should be employed. Create alternative first, then make them irresistible. Build massive public transit then make it cheap to use, procure large supply of heat pumps then subsidise exchanging gas furnaces for them.

    Oh and when economists call it the most efficient way to curb climate change, they are talking specifically about economic efficiency. Its political externalities aren’t factored in even if they are large enough to kill the policy itself.