California Prop 87 and the new Economy

Some folks in Southern California are starting to try and foment fear and anger over California Prop 87. Sadly, they get it all wrong and use the term “conservative” in vain. In fact, they go so far against the principles of entrepreneurship and individual action that they shamelessly condemn the successful business men who are putting up their own money to fight for 87.

It should be obvious why entrepreneurs would want to remove the partial treatment given to oil companies. The future market is in biofuels and alternative energy, not petroleum. I simply can not understand why the prospect of renewing an ages-old energy source and market (long subdued by the petroleum companies) would make anyone cry “liberal conspiracy”. Of course this situation would not be such a problem if the market had not been broken so badly that the petroleum companies were able to so vigorously attack and blanket alternative fuels.

In terms of the forest for the trees, when every other state has a tax on pumping oil from the earth, why does a California tax suddenly get classified as a disincentive? That’s like saying a company does not have the right to charge for its product because it will create a disincentive related to other companies charging for theirs. Nonsense. This warped perspective is quite telling. Don’t be fooled by people who say that fair treatment of petroleum would be unfair to California. Quite the opposite, Prop 87 removes the unfair incentives given to oil companies and moves the state more in line with a policy against government subsidies to the rich.

And finally, take note that some may try and proclaim that the US government should not be forcing its will on anyone (i.e. tax oil companies) while they also say we are justified to invade foreign countries.

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