I’m here from the government, and I am here to take your money!
By Krystle Weeks | Thursday, June 9th, 2011 | Energy independence, PolicySometimes the government just can’t help itself. Apparently, some in Congress are still holding firm to the belief that we can spend our way out of debt. Take for example a recent attempt to provide subsidies for natural gas vehicles in the New Alternative Transportation to Give Americans Solutions Act of 2011 (H.R. 1380). With gas prices rising to record levels, Congress is actually considering getting ahead of the free market to subsidize an industry that is already less expensive than gasoline or diesel.
In addition to transportation purposes, natural gas has many other economic and environmental qualities that would certainly lead to market success without the government’s involvement. Demand for natural gas in electricity generation has increased 42.3 percent since 2000 and 7.2 percent in 2010 alone. And how could we forget the EPA’s efforts to shutdown coal fired power plants with the new Clean Air Act regulations which will almost certainly result in more demand for natural gas. With the increase in demand and an overzealous EPA, natural gas is almost certain to surge in the marketplace.
So let’s review. The government is going to subsidize demand for an industry that by all accounts is already there, causing over inflation in the marketplace which will result in an increase in the price of electricity. We all know when subsidies are created you have winners and losers. In this case, the natural gas industry is the clear winner and the American people along with the free market are they clear losers.
More subsidies is not the solution when it comes to reducing our $14 trillion national debt, it’s the problem. Creating new subsidies, or tax breaks for natural gas further exacerbates the reliance on government and our tax dollars, rather than the marketplace and consumer behavior. It’s time for our Representatives in Washington to be part of the solution and not perpetuate the problem.
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About the author
Growing up in Maryland typically does not yield a Republican. Fortunately, Krystle Weeks was one of the lucky few booted to the Commonwealth for her staunch conservative views. From an early age, she has been debating politics, and since 2006, she has been involved here in the Commonwealth helping Republican candidates to victory. Aside from politics, Krystle is a runner and a dynamite cook. You can email her here. Krystle also blogs at Crystal Clear Conservative and Charm Offensive Cooking.
Comments
7 Responses to "I’m here from the government, and I am here to take your money!"
KW says: We all know when subsidies are created you have winners and losers. It’s time for our Representatives in Washington to be part of the solution and not perpetuate the problem.
If you find a way to clone Calvin Coolidge 535 times let me know. Congress cannot justify itself and its perks when it legislates only when needed since that is an infrequent requirement. Members also can’t maintain their revenue stream if they govern with a light hand. This is why some kind of Constitutional spending restraint regrettably seems to be necessary. At least it would push the decimal point to the left. Or so one hopes.
I haven’t studied him much, but I seem to recall Garfield told some Texans who wanted other peoples’ money a firm no. So maybe you could have him cloned a couple hundred times so you don’t need 535 Coolidge’s. And if the Davy Crocket story (Not Yours to Give) is true, we could use him some too, although in general, his performance as a legislator was subpar and his handling of personal finances very poor.
“Creating new subsidies, or tax breaks for natural gas further exacerbates the reliance on government and our tax dollars”
It does something else: it gets government involved in the industry, sticking its regulatory nose into it and controlling it. “I’m from the government and I’m here to direct every aspect of your life.” The managed economy apparently needs more managers.
We need to broaden the national debate about jobs to include the regulatory state and its mind-numbing, cost-raising, interference-generating, job-destroying aspects.
There is labor cost arbitrage, but there is also regulatory arbitrage, and no one nationally is talking about that.
One of my biggest complaints about some environmentalists is that they are trying to cut the increased natural gas supply pie into too many thin slices solving every problem with this one source of energy by itself. They also will then speak out against the environmental costs of fracking (hydraulic fracturing) which is the process that is responsible for this greatly increased supply of natural gas in the United States.
I will note that the national Sierra Club leadership is slightly more reasonable. While recognizing that fracking comes at an environmental cost, they state the benefits outweigh these costs.
I’ll give an example. As a truck driver, I find T Boone Pickens’ idea to power big trucks with natural interesting. However the biggest obstacle would be in the nationwide distribution needed to provide for the fueling of the trucks which would require significant investment. If natural gas is a long term solution, then it is worth the investment. However if the increased natural gas supply is exploited to solve too many problems, the supply will not last long enough to justify the tremendous capital outlay required for distribution.
Natural gas can be part of the answer, but if too many demands are placed upon the supply with too many hogs at the trough, no one gets enough and all the hogs end up starving.
I’m here from OPEC, and i’m going to bankrupt you!
BIG OIL has a death grip on the American consumer. The grip is so strong than market forces alone will not break it.
BIG OIL has enjoyed decades of government subsidies to gain the unassailable position it now holds in the marketplace. Natural gas is new to the transportation fuel marketplace. I’m a conservative Republican, but I see absolutely nothing inconsistent with the government giving a new market participant, i.e., natural gas, a small “kickstart” to even the playing.
I believe H.R. 1380 is a well crafted piece of legislation to serve just that purpose.
I’m here from OPEC, and i’m going to bankrupt you!
BIG OIL has a death grip on the American consumer. The grip is so strong than market forces alone will not break it.
BIG OIL has enjoyed decades of government subsidies to gain the unassailable position it now holds in the marketplace. Natural gas is new to the transportation fuel marketplace. I’m a conservative Republican, but I see absolutely nothing inconsistent with the government giving a new market participant, i.e., natural gas, a small “kickstart” to even the playing field.
I believe H.R. 1380 is a well crafted piece of legislation to serve just that purpose.
I definitely agree with you. The government leaders should lead this country to get out of this whole mess rather than add to the problems. There are problems in the rising gas prices, increasing unemployment rate, and a whole lot more that needs their immediate attention and thoughtful discretion as to how to find the solutions. May they not delay before it’s going to be too late.
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