This is a really interesting document and question Stan raises. 
Conservation faces an unfortunate dilemma – funding is often easier to get
during “good” economic times, yet a hypercharged economy does quite a bit of
damage to the systems we’re trying to study/protect/restore.  If you doubt
the damage that economic growth causes, consider the housing boom that
according to most experts has “kept the U.S. economy afloat” for the last 5
years or so following the tech bubble burst – then think about how much
damage to ecosystems, populations, and species across the country this has
caused!  The economic growth in China that Kotlikoff suggests to bail out
the U.S. obviously comes with its own high price, for Chinese citizens,
their environment, and the world (especially through climate change).

Clearly a bankrupt Federal government is not likely to be a good thing for
the environment or the economy, unless it forces radical changes in how and
what the government taxes and spends.  And I’d imagine that most ecologists,
accustomed to thinking on evolutionary vs. business time scales, are
probably more concerned than the average American about the country’s fiscal
as well as environmental health.  So it’s interesting to read Kotlikoff’s
proposed solutions.  One solution that is not mentioned is ecological tax
reform – replacing much of our taxes on income with taxes on pollution and
natural resource depletion – giving business clear incentives to reduce
environmentally harmful behavior.  Taxing consumption as the article
suggests is also an interesting idea, especially if environmentally harmful
products were taxed at a higher rate.  These ideas have been proposed by
ecological economists for years, but are at least occasionally mentioned by
some neoclassical economists as well.  The obvious problem is finding the
political will to reform the U.S. tax system, much less in a beneficial way.

As a side note, it was interesting to read how the 2002 economic report on
this issue was suppressed and Treasury Secretary O’Neill fired following its
completion.  An unexpected, and unfortunate piece of common ground between
climate change scientists, endangered species biologists, and economists who
take the long view of things.

My 2c…

Ken Bagstad
Graduate Research Assistant, University of Vermont
PhD Program, Natural Resources/Ecological Economics
Aiken Center, 81 Carrigan Drive
Burlington, VT 05405

------------------------------

Date:    Tue, 11 Jul 2006 18:31:10 +0000
From:    stan moore <[EMAIL PROTECTED]>
Subject: Questioni:  what would a bankrupt U.S. government mean for wildlife
conservation

The prickly question of U.S. financial condition is tackled in the brand new 
Reserve Bank of St. Louis Review, and can be accessed via the following URL:

http://research.stlouisfed.org/publications/review/06/07/Kotlikoff.pdf


Then a pertinent question becomes:  how high will wildlife conservation be 
as a national fiscal priority if and when the system as we have known it 
collapses?


Stan Moore     San Geronimo, CA      [EMAIL PROTECTED]

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