Free Markets, Free People

Daily Archives: June 28, 2013


Damn the facts and costs, full speed ahead

We often talk about how poorly we’re served by our political class.  The examples are legion (just take a gander at the “Gang of 8′s” travesty of an immigration bill).  But most puzzling about what they do is when there are real world examples of why what they propose is doomed to costly failure, they go ahead anyway.  Hubris?  Arrogance?  Ideology? A giant dollop of all?

Take Obama’s latest – his late entry into the climate change nonsense just as everyone else has realized it’s a costly boondoggle and are pulling out.  For example:

In May, Europe’s heads of state and government at the EU Summit promoted shale gas and reduced energy prices. They would rather promote competition than stop global warming.

Obama just returned from Northern Ireland at the G8 meeting where he evidently didn’t ask why the United Kingdom removed climate change from the agenda.

European carbon markets had collapsed with the price of carbon hitting record lows, wrecking the European Union’s trading scheme for industrial CO2 emissions.

British Gas owner Centrica was buying up shale gas drilling rights in Lancashire for fracking operations. Green investors faced bankruptcy as Spain cut subsidies even further.

Large German companies such as Siemens and Bosch abandoned the solar industry, which had lost them billions, while investments in failed solar companies, including Q-Cells and SolarWorld, destroyed 21 billion euros of capital.

In response, German Chancellor Angela Merkel told a June energy conference in Berlin to expect reduced government spending on energy like wind and solar power to keep Germany economically competitive. Europe’s clean energy economy had become a black hole eating euros.

Last week, Merkel’s government warned EU member states that German car makers would shut down production in their countries unless they support more affordable vehicle emissions rules.

At the same time, our oblivious president spoke at Berlin’s Brandenburg Gate, saying, “The United States will “do more,” before it’s “too late” to prevent “dangerous” global warming.

Yeah.  We’ll do “more”.  Meanwhile, everyone else has decided to do much less or … nothing.  And that “more” Obama is talking about?  Well, apparently it’s time to wreck another industry:

Myron Ebell, director of the Center for Energy and Environment at the Competitive Enterprise Institute, told me, “The centerpiece of President Obama’s climate plan is a declaration of all-out war on coal. The only affordable way to reduce emissions from existing coal-fired power plants – which now provide 40 percent of the nation’s electricity – is to close them down.”

Obama’s plan has political implications as well, Ebell said. “Coal dominates the heartland states that tend to vote Republican. Major industries are located there because coal produces cheap electricity. If electric rates go up to California levels in the heartland, where will American manufacturing go?”

Good question, no?  Answer: he doesn’t really care.  Seriously.  This is all about ideology.  Blinders on, facts ignored, examples discarded, it’s about legacy and “saving the world from itself” even if he has to do so autocratically.  Because, you know, that Constitution thingie just get’s in the way of good governance … or something.

~McQ