That's right, I said it!
NOTE: I am not a economist or an environmental scientist. Rather I am expressing what I feel is a logical and well thought out argument. I look forward to any discussion prompted by this "letter".
We must lead the world to produce fewer greenhouse gas emissions, and we must do it in a way that does not undermine economic growth or prevent nations from delivering greater prosperity for their people
So said President George W. Bush at a conference Friday.
Mr Bush: Establishing mandatory caps on greenhouse gases will NOT our economy nor will it "prevent nations from delivering greater prosperity for their people"! In fact, the opposite is true.
Business, our economy, and capitalism in general, is based upon at least one underlying principle: competition. But what exactly is competition and how does it benefit us?
Competition is means by which businesses, and more importantly the products and services they sell, are set to an objective standard. In a free market economy (note that I distinguish a free market economy, in which the government plays an active role in ensuring competition primarily through anti-trust lawsuits, from a laissez-faire economy, in which the government plays no role whatsoever in regulating business) competition provides a standard that is relative. This standard is dynamic in that it changes as the competition changes (usually as a result of advances or changes in products or services, and/or increased or decreased competition). It is this objective standard that makes capitalism work.
Competitors are forced to change and adopt to remain profitable, and therefore stay in business, and more importantly are forced to advance. They must improve the quality of their product(s) and/or service(s) and reduce the price of their product(s) and/or service(s). This in turn forces the competition to do the same thereby creating a never-ending cycle. It is therefore objective standards, or "challenges", which allow businesses flourish.
However, the more we look at the business world, and more we follow this line of argument the more we realize that competition is not the only standard by which business is judged. In order to understand this let us take two examples of businesses that have excelled despite great challenges. First let us take the airline industry, and then the auto industry.
Despite the recent, and justified, complaints against airlines for delays, and to a lesser extent poor customer relations, the airline industry has achieved one astounding success worldwide, safety. Travelling by airplane is still the safest form of travel. This is the case despite the fact that planes are the most complex vehicles [accessible to the public] to produce and maintain, the number of planes in the sky is increasing exponentially, and travelling by air is relatively inexpensive. The best illustration the importance of safety is the collapse of Pan American World Airways (Pan Am) due in no small part to the 1986 hijacking of Pan Am Flight 73 and the 1988 bombing of Pan Am Flight 103.
Next, we turn to the more telling situation in the auto world. Currently, the top United States auto-manufacturers: General Motors, Ford, and Crystler are facing serious economic problems while one notable Japanese auto-manufacturer, Toyota, is the world's largest auto-manufacturer in terms of revenue. This is due largely to the limitations placed on Toyota by Japan, namely its small roads, strict emission standards, and the high price of gasoline.
These two examples illustrate one important point, just as atrophy causes muscles to deteriorate so too does atrophy hinder the growth and strength of business. Let us set a challenge, an objective standard, to businesses. If need be we can invite environmentalist, economists, and business leaders representing both small businesses and large businesses together to work out a compromise on the level of emission standards.
I do, however, agree with you one point, imposing the same standards on developing states, such as China and India, will no doubt hinder their economic development. However, such difficulties can be overcome. Since businesses in America always seek the most effient and cost-efficive methods of business they inevitably develop cheaper and more efficient methods of business, which can in turn provide developing states with the means to reduce their emissions. So it is said, if America leads others will follow.
Thank you.