Category Archives: Moral hazard

Carbon Dividends: A Plan for Earth’s Survival that Can Survive U.S. Politics?

Yves here. Carbon dividends are a way to create support for setting a price for carbon. None other than those starry-eyed granola heads at Financial Times called for setting a price for carbon in 2007. Pigovian taxes (ones meant to discourage activity, like transactions taxes) should typically not be seen as revenue generators, since you […]

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Bank Regulation Can’t Be Heads Banks Win, Tails Taxpayers Lose

At a G20 preparatory meeting, an INET panel analyzed how governments can prevent banks from exploiting taxpayer-funded bailout guarantees. The panelists didn’t mince words.

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Michael Hudson: “Moral Hazard” vs Mutual Aid – How the Bronze Age Saved Itself from Debt Serfdom

Bronze Age societies forgave agricultural debt to keep cultivators working on their land, able to pay taxes and work in the military and on public projects. Lenders were seen as greedy and exploitative.

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