Friday, July 22, 2005
Energy-Bill Follies
A review of the House and Senate Energy Bills
"In this case, the Senate proposes to subsidize investments that have been unable to attract as much private capital as proponents would like. But what are the chances that 100 senators using other peoples' (taxpayers) money will make better investment decisions than investors using their own money? It's possible that some of the Senate's choices are sound, but in those cases, all that is accomplished is the unnecessary transfer of resources from taxpayers to investors. In short, the Senate isn't subsidizing energy as much as it's subsidizing dubious investments and/or particular investors."
"In this case, the Senate proposes to subsidize investments that have been unable to attract as much private capital as proponents would like. But what are the chances that 100 senators using other peoples' (taxpayers) money will make better investment decisions than investors using their own money? It's possible that some of the Senate's choices are sound, but in those cases, all that is accomplished is the unnecessary transfer of resources from taxpayers to investors. In short, the Senate isn't subsidizing energy as much as it's subsidizing dubious investments and/or particular investors."
