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Posts Tagged ‘global oil subsidies’

Here is a study by the International Monetary Fund analyzing how large global energy subsidies are. This includes coal, oil and gas. The number is staggering: $5.3 trillion in 2015. That amounts to about 6.5% of the global GDP. About half of that is in emerging Asia, which includes China, and is boosted by the heavy use of coal in that part of the world. In the United States alone, the amount estimated for 2015 is $700 billion.

Subsidies are money that our governments take away from citizens in form of taxes and give to private and nationalized large corporations to do with as they please. Those corporations exist to make money by selling their products. They don’t exist to worry about what air our children breathe in 20 years and our grandchildren in 50. They don’t exist to worry about Pacific islands sinking under the sea. They don’t exist to worry about Miami, New York, and Tokyo being under water by 2100. There is no incentive for them to keep the environment clean, the rivers pristine, and wildlife alive. By definition, corporate organizations exist to make money and worry about nothing else. Yet, we give them the people’s money, every day.

How much is $5.3 trillion?

Oil Subsidies Worldwide

You can read the chart, but the bottom line is the most staggering one: The world’s taxpayers spend $168,000 a second, every second, day and night, year after year, to prop up oil companies. Yes, that’s Shell, Exxon, BP and many others. These are the same companies that make unbelievable profits. Shell’s profit alone in 2012 was $26.8 billion.

We are being brainwashed every day by our very own media and politicians to hate the word “redistribution” since it connotes socialism. The entire food stamps budget in the U.S. for 2015 is $84 billion, and it was cut significantly. Everyone seems to hate food stamps, even though is is an impactful and effective program, and has a surprisingly low fraud rate with more than 99% of benefits going to eligible households. In 2013 alone, it lifted nearly 5 million people above the poverty line, including about 2.1 million children.

We don’t like redistribution of tax dollars of $84 billion to the poor and their children. Yet, we seem to have no problem handing $700 billion to the oil companies in the U.S. alone. That’s almost 10 times as much as the entire food stamp program.

Giving tax money to corporations, any corporations, is wrong. Giving it to oil companies is immoral.

Why don’t we just stop this nonsense? Bernie Sanders has proposed an End Polluter Welfare Act, which he says would cut $135 billion of U.S. subsidies for fossil fuel companies over the next decade. It doesn’t seem like a big enough cut to me, but it’s a start.

I think I’ll donate another $35 to Bernie Sanders right now.

 

 

 

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