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Politics : PRESIDENT GEORGE W. BUSH

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To: Neocon who wrote (38942)9/21/2000 4:04:52 PM
From: Doughboy  Read Replies (2) of 769670
 
No question about it. At some level we all benefit in the short run from a subsidy to the trucking industry by paying less for our lettuce, TVs, and furniture. But there are all sorts of market inefficiencies in the long run that we cannot possibly understand the ramifications of from subsidizing the highway system. Subsidies are bad (and are hated by fiscal conservatives) for the very reason that they don't let the market determine the proper level of demand. For example, the subsidy to trucking and car travel causes additional pollution or an over-consumption of certain goods, such as SUVs. The train system and railroads have fallen into bad times because of the subsidy to the trucking industry. Can you really say that was a good thing or a bad thing? We don't know whether in the long run we would all be paying less for groceries and consumer goods if the trucking industry had vigorous competition from railroads. I think the right solution is seeing that taxes and subsidies reflect true consumer preferences rather than skewing them.
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