Samuel J over at Catallaxy considers the role that climate change policies had in the lead up to the 2008 global financial crisis.
We have a number of reasons that climate change policies have been a key factor leading to a global recession:
- the microeconomic inefficiencies caused by the numerous extremely costly distortions
- the opportunity cost of resources – human and physical capital – being diverted to a considerably less efficient use because of government policies
- the increase in the cost of energy (present and future): affecting the growth of the economy as energy is a fundamental input in the production of goods and services (and the increase in energy prices has damaged the standard of living of many poor people in developing countries), also an increase in the risks of energy shortages and disruptions
- the macroeconomic costs of expensive climate change policies
- the wanton destruction of energy production capacity well before its end of useful life
- the corruption of financial markets with the lure of easy money but actually to a high risk trap
- attacks on the legitimacy of the free market: in the past we could expect this from communists and the Soviets; now many governments are complicit. Indeed there has been the effective brainwashing of our children by the education authorities which has succeeded in taking away from many the power of critical thinking.