Yes, once again I trekked over to Treehugger for a post that complained that IF Congress failed to renew the wind and solar tax credits, up to 100,000 jobs would be lost. Well being the Free Marketeer that I am, I could not let that go and waded into the comments. A couple of them here (emphasis mine). For instance, the first one starts off on what seems to be OK – and then tanks:
Distortion is the idea behind subsidies. Never should an industry that is doing well and can continue on their own receive a subsidy. Instead industries that we want to have grow and flourish get subsidies.
And I could not wrap my mind about this next point:
Subsidies distort the market in the same way that antibiotics distort the body. There is a change we want made, but its either not going to happen or it will only slowly happen on its own. We use subsidies and antibiotics to make those changes happen on a better time scale.
I did have an answer to that:
Bad analogy – antibiotics are used to “distort” the disease ravaging the body to make it better. Subsidies only distort the marketplace, making something that is failing to begin with (or can’t launch because there IS no demand for that product at the price the seller is demanding) worse.
If you WANT something, voluntarily BUY it. That’s what makes a free market 1) free from government coercion 2) work and grow larger.
Government subsidies are about the Politics and the Power to move money – and not the marketplace. Politics and marketplaces generally yields Crony Capitalism – the worst distortion period.
And of course, he took me to be quite wrong – he is perfectly fine with those “at the top” steering the ship USS Economic. While I didn’t say it there, the question beggged is “Where is the authorization to do so”?
I see it as quite an accurate analogy.
You and I both know that this is down to fundamental differences in ideology about the role of government. I think that subsidies can be wisely used to stimulate the economy to produce results that need to come about. You think that is government overstepping its bounds.
Ah, roger that!
You think that if we need something, the people will make it happen. I don’t think it necessarily will happen. This discussion is simply a matter of ideals, something no stranger on the Internet can change.
Right – like the Obama “We’re better than real Venture Capitalists” Administration did with Solyndra?
I do see it oversteeping – and you don’t. That’s fine – we can continue the debate. I see your “We” as actually being the individuals that make up the voluntarily deciding what “We” want.
You see Power hungry and unaccountable bureaucrats filling that role. You’re fine with such a small number of people deciding for everyone else simply by the fact that they draw a government check and taking-and-then-spending other peoples’ money as best for all.
I’d rather see individuals spending their own money voluntarily.
Force vs voluntary; it is clear where you side.
This sums it up rather well:
SolarCity – “YAY! for Crony Capitalism” seems to be the watchword for this article. Sorry, the answer is not more or continued govt subsidy to a few paid by all but to cut it off. Period. And that goes for all subsidies to the private sector with perhaps one caveat which is a Constitutional mandate – it makes no sense for those that service the military needs to rely on offshore sources.
All others? Make it in the Free Market or let that capital be used more efficiently elsewhere in the economy. Let people make their own decisions where to put that capital and not government forcing those decisions.
I did leave a couple of other comments – feel free to chime in!
