My government subsidized solar panel still works
by
shotsie
09/08/2008, 3:02 PM #
..just after 25 years of use. It was made by a private company - Gruman Aircraft, using good quality materials. I think this was the subsidy that Barack Obama is talking about - the government would coordinate power projects and components for alternative energy production, and not design the details.
I saw Friedman talking this morning, and his plan to somehow motivate private industry to create alternative energy components by raising the gas tax is pretty strange - maybe they could use the tax to pay for research, but otherwise the tax would enrich the Fed's budget without providing direction for that money, and would be a regressive tax on the poor and middle class. Taxing gasoline higher would only force the automobile manufacturers to produce autos with higher gas mpg ratings, not create a series of alternative energy products. Building big electricity projects requires government involvement - think TVA, or the Hoover Dam.
I suggest that the government might want to increase the tax on home fuel for mega-homes - maybe subtract the utility bill from the home interest/property tax deduction, after a nominal energy deduction (say, a $200/month energy tax cutoff). Or just boost the tax when the monthly total goes above some basic amount. I'm sure the Friedman's can fund the innovation to invent energy technology to lower their cost. Market forces rule!