jesse
@ July 22, 2011


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(I know I haven't written much lately. Now I return with a completely serious and unfun perspective on politics. You may continue not paying attention to this space. You are welcome.)

We all derive our understanding of the world from our particular perspective. My perspective is as somebody who works in the world of energy. As our demand for power in this country grows, we have two ways that we can respond. We can build more power plants, or we can become more energy efficient. In Texas, each utility has rebate programs where they pay their customers to become more energy efficient. Why would a utility company that makes its money by selling electricity pay its customers to use less of it? Because as demand increases, they have to build power plants, and eventually it actually becomes cheaper to pay your customers to use less than it is to build more capacity. They understand that a megawatt saved is the same as a megawatt produced.

Now think about it in terms of a senior citizen who gets $500 in Social Security every month. If the government cuts her benefits by $100, or levies a tax of $100, what is the difference? If you are a government contractor and your taxes are raised by $1M, or the government cancels a $1M contract, what is the difference? What, exactly, is the difference between a tax increase and a spending cut?

The difference is only in who is affected. If spending is cut on social programs, it is predominantly the poor and disenfranchised who suffer. If marginal tax rates are raised, it is the wealthy and middle class who pay the price. That this is not the rational basis for our national economic policy is due wholly to the influence of money in our politics.

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