Friday, September 09, 2005

charity is not the answer

The oil company Shell donated three million dollars to emergency aid from Hurricane Katrina. That represents about one hour's profits. Under land rent, oil fields would be taxed to their full value. All profit would come from extracting oil more efficiently than the competition - there would be no profit from simply owning the fields. Hence oil would still be pumped, but billions would go to the community, and everyone benefits.

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