Is This A Winning Issue?

Andrew Yang is running for President in the Democrat primary. He is currently polling at about 3 percent. He has some interesting ideas on changing the American culture.

Hot Air posted an article today about some of those ideas.

The article reports:

MSNBC held their latest “climate crisis” event for 2020 Democratic hopefuls yesterday and when Andrew Yang took the stage he brought up one possibility that all the candidates should weigh in on. When asked by the host what the world would look like in 2050 after the everyone began dealing with climate change and carbon emissions, he suggested that the end of private car ownership was probably on the horizon.

…Democratic presidential candidate Andrew Yang said the United States may have to eliminate private car ownership to combat climate change during MSNBC’s climate forum at Georgetown University Thursday morning.

He told MSNBC host Ali Velshi that “we might not own our own cars” by 2050 to wean the United States economy off of fossil fuels, describing private car ownership as “really inefficient and bad for the environment.” Privately owned cars would be replaced by a “constant roving fleet of electric cars.”

Somehow I don’t see this happening.

The article concludes:

There are two sides to this proposal, consisting of the practical and the political. Being as we are in the midst of a presidential race, the political may be more important in the short term. The fact is that the Democrats seem to keep coming up with ideas that may look good on paper at liberal cocktail parties but are not at all popular with the voters at large. Eliminating private car ownership is just such a proposal.

People love their cars. Nearly everyone realizes that they are expensive luxuries and account for too much pollution, but we still live in a car culture. It’s a status symbol and a totem of our freedom of movement. No matter how well-intentioned you may be, if you come along and say the government needs to take away all your cars, the public is going to be up on their hind legs. This is the way you lose elections.

On the practical side, I will grudgingly admit that Yang is probably at least partially correct about this. If he was saying there would be nothing but mass transit, that would be nuts. Mass transit simply isn’t practical for most of the country unless you live in a densely populated urban area. But he’s also picturing fleets of electric, driverless vehicles that anyone can summon when they need to go somewhere. Uber and Lyft are working on just such a plan right now and sooner or later it may become our new reality.

But having said that, electric vehicles still need to be powered. Until you answer the question of where you’re going to come up with all of the electricity needed to replace the power currently being generated by gasoline, you’re not going to be doing much for the climate. As I mentioned yesterday when talking about efforts in California to eliminate natural gas usage, the state derives roughly half of their electricity from natural gas plants. If all of the cars are suddenly running on electricity, they’re going to be burning a massively larger amount of natural gas to meet the demand.

Yet again, we’re seeing the Church of Climate Change forcing Democrats to toss out expensive, impractical ideas that most people will rebel against. And they can’t seem to help themselves.

There is a lot more to the relationship between Americans and their cars than transportation. Somehow I can’t see taking away our private cars as a winning idea. We also need to consider that American carbon emissions are only a part of the world’s carbon emissions. We are a small percentage of carbon pollution. Unless the countries that are not concerned about the environment cut their emissions, nothing we do will have much of an impact. Keep in mind that China and India, the world;s biggest polluters, we essentially exempt from the climate treaty for a number of years. Maybe the treaty wasn’t really about climate.

A Really Bad Idea That Sounds Wonderful

Andrew Yang is running for President in 2020.  One issue in his platform is what he calls the Freedom Dividend.

Andrew Yang’s website describes the Freedom Dividend as follows:

Andrew would implement a Universal Basic Income, ‘the Freedom Dividend,’ of $1,000/month, $12,000 a year for every American adult over the age of 18. This is independent of one’s work status or any other factor. This would enable all Americans to pay their bills, educate themselves, start businesses, be more creative, stay healthy, relocate for work, spend time with their children, take care of loved ones, and have a real stake in the future.

Any change to the Freedom Dividend would require a constitutional amendment.

It will be illegal to lend or borrow against one’s Dividend.

A Universal Basic Income at this level would permanently grow the economy by 12.56 to 13.10 percent—or about $2.5 trillion by 2025—and it would increase the labor force by 4.5 to 4.7 million people.  Putting money into people’s hands and keeping it there would be a perpetual boost and support to job growth and the economy.

This proposal reminds me of 1972 Democratic presidential nominee George McGovern’s proposal to write a $1,000 check to every American. That sounded good to me, so I voted for George McGovern. I have learned a little since that time.

The obvious question is, “Where would the money come from?” Mr. Yang’s answer is that it would come from a value added tax that would add equity to the American tax system. Last year Amazon paid no federal tax on its $11 billion profit. A Value Added Tax (VAT) would change that. Other companies that paid no tax last year were Delta, Chevron, IBM, Netflix, General Motors, and John Deere. I am not criticizing those companies–they simply took advantage of the tax laws the way they are written. That is good business practice, and there is nothing illegal about it. However, there is a concept being omitted in this discussion–corporations don’t pay taxes–their customers do.

A value added tax levied on these companies would be passed on to the consumer in the form of higher prices for the goods or services involved. Every taxpayer might get his $1,000 Freedom Dividend, but it would be spent to cover the increases of the cost of the goods the VAT was levied on. Most countries do have VATs, but I am not sure adding any additional tax to American companies is a good idea. In the end, the consumer suffers and the cost of paperwork soars.