As explained in a previous article energy can be used by governments as a taxation choke point.  The short explaination is that there are limited numbers of energy producing companies and energy is needed and used by everyone.  Thus if you tax no where else in an economy its possible to tax everyone.  Well that is a socialists dream! There is a counter trend at work in microenergy. Microenergy investment has been growing rapidly.  50% of all electrical energy produced is lost in transmission over long distances. electric-micropower-investment.gif Producing energy on a small scale is a democratizing force if it can be produced in a way that avoids taxes all together.  If so it will be the opposite of the socialists dream. Which of course is a little ironic because the left are so holding out for this type of thing!

Categories: EconomicsPolitics

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