Monday, April 11, 2011

The Truth About Government Subsidies

Bill Anderson writes:
...the Obama administration continues to insist that granting huge subsidies to corn-based ethanol and electric "wind farms" ("subsidy farms" is the more appropriate term) will help lead us out of the recession. Earth to Obama (and Krugman and the others): it is impossible to subsidize oneself into prosperity. Any benefits accrued to one party MUST be confiscated from another when subsidies are involved. An economy built upon subsidies is an economy that will continue to shrink.


  1. I am told that airlines could not fly without subsidies. Does that mean we should stop flying?

    Doesn't it pay to be prepared for the future of Peak Oil? (by bootstrapping new industries)

  2. @ anon - did an airline exec tell you that?

    A freed market would anticipate and be properly prepared for such contingencies, rather than the State attempting to drive the market to heretofore inefficient "solutions", i.e. solar and wind power.

  3. @Anonymous --

    Do you believe everything you're told?

    Because a demand exists for airlines, they would exist without subsidies. The difference would be that most big airlines, which are currently inefficient because they benefit from corporate welfare and regulations that shield them from competition, would be forced to better satisfy their customers or be driven out of business by superior competitors.

  4. @ anon

    Peak Oil, huh? So I'm guessing you're long on the stuff, right? Even 200 bucks a barrel would be a bargain-buy for you! Heck, you should stockpile it in a warehouse yourself!

    Are you doing any of these things?

  5. Quote from Anonymous: "Doesn't it pay to be prepared for the future of Peak Oil? (by bootstrapping new industries)"

    But doesn't that mean we'll be ignoring the pixie dust shortage?