Mr Khan said:
Subsidies are exactly for this sort of thing, to correct for stuff that is good, but that the market does not embrace in its current form. Subsidies are often applied too bluntly, to be sure, but green initiatives (as an initially noncompetitive emerging market) are exactly the sort of thing subsidies are there to fix |
Except subsidies don't fix it. Subsidies don't work. All subsidies do is drive up the cost of energy, hurting economic growth, as subsidies have to come from somewhere, and they com from the taxpayers hurting everyones general wealth.
If an emerging market is non competitive, it shouldn't be emerging yet, and instead more of the seed money should be focused on R&D. Rather then spending feed money on instalations and buisnesses that can't survive unless hooked up to a government IV, and whose installations will need to be radically retrofitted whenever (if ever) an actual market competitive technology is found.
While if it ever gets to the point of where government can't afford the subsidies anymore, the buisnesses crash, burn, people are out of money and all we gained out of it was higher prices for energy and slower economic growth.
Basic research grants would be FAR more effective and useful then subsidies. Either that or specific focused government uses of alternative energies. IE alternativly powered military vehicles for times of war and oil shortages with power stations owned by the government. Or really just whenever. The price oil costs the government when is said and done is like 16+ bucks a galon when you consider transportation and the like.
Subsidies do nothing but cultivate complacency. Look at the Ethanol subsidies.
Take the money spent on worthless subsidies, and instead spend it on technology and eventually equipment to change army equipment to non-oil based resources... then you'd have a real market which hopefully would develop technology that would be useful for private companies.
Then you'd have a government program that help. Subsidies, though....
Subsidies are never good. Hell, you'd be better off with tariffs then subsdies.
I mean, I can't even think of a subsidy that actually fufilled it's stated goal, let alone was a positive for a modern country.








