I don’t think I have to remind regular readers here that I’m not a fan of subsidies – any kind of subsidies. That being said, and the fact that despite my desires, we seem bound and determined – or at least our politicians are – to subsidize “green energy”.
Gates lays it out for our big government greenies in a way that at least would send subsidies to the right place vs. how they’re being planned as we speak.
There’s the “right way” (again disclaimer in place) and, as Gates puts it, the cute way (aka the “wrong way”):
If you’re going for cuteness, the stuff in the home is the place to go. It’s really kind of cool to have solar panels on your roof. But if you’re really interested in the energy problem, it’s those big things in the desert….despite often-heard claims to the contrary, ethanol has nothing to do with reducing CO2; it’s just a form of farm subsidy. If you’re using first-class land for biofuels, then you’re competing with the growing of food. And so you’re actually spiking food prices by moving energy production into agriculture. For rich people, this is OK. For poor people, this is a real problem, because their food budget is an extremely high percentage of their income. As we’re pushing these things, poor people are driven from having adequate food to not having adequate food…
You could have the government throw money at the most politically favored guy in the country to go build a battery factory. And there are billions of dollars that have been assigned to that waste…. I think people deeply underestimate what a huge problem this day-night issue is if you’re trying to design an energy system involving solar technology that’s more than just a hobby. You know, the sun shines during the day, and people turn their air conditioners on during the day, so you can catch some of that peaking load, particularly if you get enough subsidies. It’s cute, you know, it’s nice. But the economics are so, so far from making sense. And yet that’s where subsidies are going now. We’re putting 90 percent of the subsidies in deployment—this is true in Europe and the United States—not in R&D. And so unfortunately you get technologies that, no matter how much of them you buy, there’s no path to being economical.
So he’s right – it’s R&D where money should be going, not picking winners and losers all while disrupting markets and punishing poor people because government is economically ignorant of markets.
The unfortunate part about the Gates statement is it accepts subsidies as a good thing even if misdirected.
Apparently how he gained his billions was because government somehow subsidized it in some ways. No markets. No venture capitalists seeing a good idea, visualizing a market for it and funding the research necessary to cash in on it.
Nope, gotta have subsidies and all the negative effects it brings to the markets I guess.
Anyway, he’s right about the meta-picture – if we want to get serious about “green energy” then R&D is where the game is now. Not “deployment” as Gates calls it – the stuff is not ready for prime time.
Oh, and government? Get out of the freakin’ way, will you? The government is so scared that someone will make billions off of a good idea in a free market that they’ve invented this myth that the job is just too big for private markets.
Get out of the way.
I talked about it yesterday, but to reiterate, this is an action blessed by the UN and Arab League – and no one else. But there are those among our leadership who see it as a precedent to pretty much do whatever we want under the principle espoused by the UN – “Right to Protect” or R2P. This new “principle”, according to Ban Ki-Moon, Secretary General of the UN, gives the UN the “right” to go after governments that are killing their own citizens. And not just with aircraft (something Sec. of State Clinton used to differentiate what was happening in Libya and Syria as an excuse not to move on Syria).
To illustrate my point, one only has to go to the Sunday shows for an example:
Sen. Joe Lieberman, a Connecticut independent, said the events transpiring in Libya should send a strong message to the Syrian dictator.
“If he turns his weapons on his own people, he runs the risk,” Mr. Lieberman said on “Fox News Sunday.”
“There is a precedent now. … We’re not going to allow Assad to slaughter his own people.”
Of course my first question is “who is ‘we’, Mr. Lieberman?”
In the case of Libya, certainly not the American people. They were never consulted (though their representatives). If ever there was a unilateral decision to go to war, this provides the example.
Secondly, this is precisely what the Neo-cons were accused of championing – and it now seems it has evolved as a policy of the Obama administration. The irony is incredible. Especially after we saw the same administration pretend like the slaughter of protesters in Iran by the government was something to essentially ignore.
And I can’t help but observe that this smacks of more than anything is international bullying. Pick on a weak country that displeases others for whatever reason, come up with a high sounding reason to intervene and go to war. Who you are backing and what they are or stand for isn’t as much of a priority as establishing the precedent of the “right” to act internationally without worrying about those pesky legal impediments such as Constitutions and such. But if the country is strong militarily or has supporters in the region (Syria and the Arab League), make excuses for not applying the same standard to them. That’s precisely what we’re seeing with Syria.
One of the laugh out loud reasons for not applying the same standard to Syria was Clinton’s contention that the Syrian dictator Assad is a “reformer”.
That had the Syrian protesters shaking their head in wonder.
Ammar Abdulhamid, who has emerged as an unofficial spokesman in the West for the activists organizing the Syrian protests, said, however, that Secretary of State Hillary Rodham Clinton was wrong to refer to Syrian President Bashar Assad as a reformer on CBS News on Sunday.
“It was ridiculous to call Bashar Assad a reformer. She should not have done that,” he said.
I’m reminded of Secretary of Defense Robert Gates recent speech at West Point where he said that any president who committed us to another war in the Middle East should have his head examined.
Frankly, I agree. The unfortunate thing is this “precedent” as Joe Lieberman correctly identifies it, sets us up to commit to an unlimited number of wars in the Middle East and elsewhere – just so we manage to get a sanction of some sort of NGO or another in the process. We’re officially in the “others volunteering our military” business, the “world policeman’s league” with this action – and as I understood it that was something Democrats and left objected too strenuously.
What happened to that?