30 Apr 2014 adminPS
If elected I will propose:
Michigan voters passed a law mandating that 10% of the state’s energy come from renewable sources. I will propose a law requiring the utility companies to add the increased amount to every monthly bill which this mandate has added to utility bills.
The unintended consequences of government subsidies are enormous and almost universally negative for the country. Here are a couple of examples:
Turning corn into gasoline:
Ethanol subsidies are turning 40% of the nation’s corn crop into gasoline. This has caused food costs to skyrocket. It has also exploded the cost of food stamps. Food stamp recipients have tripled in the last decade from 15 million to 45 million. The cost of the food stamp program has increased six-fold-(from $15 billion to $90 billion) which is much faster than inflation. This means the nation is adding $25 billion per year to its deficit because of ethanol subsidies. Projected across all of the nation’s consumers not receiving food stamps-(85% of the population), the cost to all Americans is an additional $166 Billion per year. The total cost to the nation of ethanol subsidies is $191 billion per year—amounts to over $600 per person.
Wind, solar, and electric car subsidies:
The nation has spent about $60 billion on subsidizing these items in the last few years. It is simply trying to do the impossible—pick winners and losers. The only sure winners are the politically connected beneficiaries of these government giveaways.
Technologies move so fast and in such unpredictable ways that government needs to let real winners and losers emerge. There is no better example of the futility of predicting future technology than natural gas. A decade ago oil companies were building terminals to import natural gas. The fracking boom has uncovered so much natural gas that the companies are now spending billions to retrofit the terminals to export natural gas.
I am a skeptic of global warming. Summer temperatures vary significantly according to the amount of humidity in the air. Miami has never hit 100 degrees and Phoenix averages 105 degree high temperatures in the summer. I wanted to be a weatherman growing up and noticed that whenever a summer record high temperature was broken it was almost always broken from the 1930’s. The 1930’s had a severe drought called the dust bowl. In Missouri in 2012, you had to dig six feet into the ground in order to find any moisture in the soil, and St. Louis hit many record highs. The recent winter had a lot of conversation about the percentage of Great Lakes with ice cover. I am attaching a chart showing the last 30 years of maximum Great Lakes ice cover each winter. It shows that the 80’s were cool, the 90’s warm, and the 2000 decade average. I believe looking at winter ice cover is much more accurate than looking at summer high temperatures which are really just a measure of humidity and drought.
What impact is global warming/climate change having on the country?
It has driven the subsidies for ethanol, and wind power described above. It has driven impossible CAFE standards for the auto industry which is a huge threat to Michigan—see more on that under the “CAFE Requirements” tab. It has allowed EPA bureaucrats to write rules which guarantee that America will not build another coal fired electric plant for the foreseeable future. Most Americans support the fact that another nuclear power plant has not been built after the Three Mile Island plant almost blew up thirty years ago.
Contrast that to the “crime” that the coal industry has created that has allowed the EPA to effectively ban future coal plants. The coal industry has reduced the amount of carbon dioxide coming out of its plants by 97% over the last 25 years. America has huge coal reserves-it is the Saudi Arabia of coal. China is building a new coal fired plant every week. Europe has endorsed the green movement so much that its electricity costs are double the US and it is losing manufacturing jobs because of electric costs. Europe has billions of dollars of coal credits being traded. A German utility recently lost $20 billion in one year because of the subsidized alternative energy.
We are a middle class country on the verge of having huge numbers of people knocked out of the middle class. A few people using dubious science are creating very expensive subsidies which increases the countries debt or consumers electric and food bills. The fallout is that more people are forced out of the middle class.
Tags: Government Subsidies