Old industries die, it is true, but the new replacement industries are typically more efficient, effective, and larger than the old industries and create more prosperity.
If the new industry is in response to, and grows in response to real market demand yes.
If its an attempt at new industry for mostly political reasons, then not so much. Not that it never happens, but their is a long record of past failures at attempts to replace oil for political reasons. It can, for most purposes be done, but in most cases not cost effectively. Which isn't to say that it can never be cost effective, but subsidies and other political interventions distort the signals we would rely on to determine if there was real cost effectiveness.
History shows us that if we really try an all out effect, using government force or distorted incentives, to remake major industries, including the energy industry, for political reasons, the likely outcome is lower overall prosperity. |
