Jan 19, 2011

Solved: US Economy, Climate Change, Unemployment ... and China

Do one thing. Implement an Actual Cost of Goods - ACG.

New product cost must include a portion of the cost of the environmental damage created by the lifecycle of the product. The making, transporting, use and recycling/disposal of the product would be considered in the Actual Cost.

I get that this would not be very popular with big business. So! We scale it so it costs US industry nothing, in the early years. Our industries are already cleaner than other countries industries. We make our average industry level the 0$ level. Manufacturers that pollute more than our industry standard are required to pay that extra Actual Cost.

It's fair. Why should a manufacturer in another country, for example, get to use cheaper dirtier energy for their manufacturing? And then use cheap dirty fuel to transport the products half way around the world? Why should clean, more efficient companies be punished in this way. Attach the Actual Cost to these dirtier products. Let's have real competition. Let's level the playing field.

Result: Clean, closer to home industries would flourish. Foreign and domestic polluters would clean up. Countries would be encouraged to manufacture for themselves. Trade deficits would dwindle. Some simple manufacturing could return home. Small businesses would thrive. The environment would have a chance to rebound which benefits everyone, everywhere.

Any questions?

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