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By: Robert F. Abbott

I see an increasing amount of chatter about carbon taxes that might reach across national boundaries. Tariffs, in other words, that would penalize nations that do not meet environmental goals set by other countries.

The Europeans have been big on this idea for a while, and now I see Americans and Canadians jumping on the bandwagon, too.

Trouble is, this bandwagon is in a parade that features the emperor’s new clothes (if you’ll pardon a mixed metaphor or two).

You see, one of the big targets of these proposed carbon taxes would be China, and to a lesser extent, India. In reality, these proposals have as much to do with protectionism as with environmental protection, but let’s leave that issue for another day.

For now, let’s start with an observation that’s been around a while, but remains critically important: Environmental improvements only come with prosperity.

If our would-be carbon-taxers get their way and impose new tariff hurdles on Chinese goods flowing into developed countries, there will be a problem. China’s environmental stewardship will take a hit, too.

Without prosperity, both at the individual level and at the national level, there will be little or no improvement in environmental practices. If China’s exports are reduced, China’s governments will have less money available for all purposes, including the environment. And, obviously there will be no grassroots push if China’s workers are pessimistic about their economic futures (not that Chinese governments care much about citizen input, anyway).

Yes, China is a major polluter, and will be one for some time. But, as its economy grows and its citizens become more prosperous, we can expect them to take a growing interest in the environment.

On the other hand, pushing back China’s industrial and economic growth at this point would put a green bullet right through its environmental progress. And that would be two tragedies in one: for China’s working people, and for the atmosphere above us all.

You’re reading the commentary section of People, Profits, & Pensions. There’s also a book section, where you can read excerpts from my forthcoming book by the same name, visit http://www.people-profits-pensions.com . In addition to reading, you can also be a book critic and give me your thoughts on what you’ve read.

By: Robert F. Abbott

I see in a news story that the net worth of the average Canadian is now a whopping $165,400, more than ever before. The statisticians got that number by taking the country’s total assets of 5.5-trillion dollars and divided by the number of people in the country - - 30-million and a bit.

We could argue all day, of course, about whether that’s an accurate figure or not. And, people on the left would no doubt raise some sort of convoluted clash of classes argument, and demand more redistribution of wealth.

But, leave all that aside while we reflect on how far we’ve come over the past two hundred years. At least those of us who live in and whose forefathers lived in what has become the developed world.

Few of us know, apparently, that until the beginning of the Industrial Revolution our forefathers had an average net worth that was very near zero. They lived on the edge, so to speak, never sure when a famine or some other catastrophe might literally kill them and their families.

Like residents of poor countries today, there were no social safety nets then, except perhaps the kindness of neighbors. Of course, there’s a good possibility that the neighbors might be suffering through the same catastrophe and unable to help.

It’s also worth noting that before the Industrial Revolution, there was little communication and little transportation between towns just a few miles apart. That meant one town could be undergoing famine while another town a short distance away was enjoying bountiful harvests.

The average net worth of the people in your country may be greater or less than that of the average Canadian, but if you live anywhere in the developed world, you are undoubtedly far wealthier and far more secure than our forefathers of just a few hundred years ago.

You’re reading the commentary section of People, Profits, & Pensions. There’s also a book section, where you can read excerpts from my forthcoming book by the same name, visit http://www.people-profits-pensions.com . In addition to reading, you can also be a book critic and give me your thoughts on what you’ve read.