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Originally Posted by Number 3
Can't say I disagree with your points. I'm just pointing out that "IF" you feel we need to be free of foreign oil or free from CO2 or whatever, the poplulace as will first always choose the cheap solution, not necessarily the best solution. We have many choices that help those issues, but unless they are subsidized the folks still want the cheap stuff.
I've said all along, we aren't addicted to oil, we're addicted to CHEAP oil.
And the other problem that you don't address is that the price of oil doesn't naturally rise and fall on economics. Political fears, terrorism, speculators etc. can all send it up much more quickly than the "normal" economy.
So again the question is, do you think we need to do it sooner or wait until it's too late. Do you remember 1973? It wasn't a real shortage, but people still couldn't get gas. And that wasn't near enough time to develop cost effective alternatives.
And when you throw in the fact that many other countries are subsidizing the technology development, that puts our country at disadavantage.
I'm just not sure if you are proposing that the government never intervene except in the case of war.
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Economics is a broader field than most give it credit for. Of course political interests effect economic philosophies just look at Keynesianism. However, nearly every "shortage" is the history of the world has been caused by bad government relations and bad economic policies. You take out government influence out of say, oil, then you would see no "shortages."
The better question is that are you proposing following in Japan's footsteps? Ever heard of the Lost Decade? Japan certainly should not be followed in their economic policies; there's a reason why their public debt is nearly 200% of their GDP. Subsidies are no different from any other government expenditure, considering every expenditure must be paid for through taxes. It benefits the corporation, yet it is at the cost of the consumer.
The last sentence is right but not my whole view. I'm a minarchist, which basically means I believe government has three legitimate functions where it must intervene to ensure security and prosperity: enforcement of property rights, national defense, and a system of law.