> What's your desired mix going forward ??
Since energy is strategic I can only speculate on how countries compete. I think our stimulus must be tied to our system of competitive capitalism. Big corporations should not be subsidized. Nor should any corporation. They should all have to compete on their own. However we can still subsidize the PROCESS that creates products and discoveries.
However I would:
1) heavily subsidize university level core research in physics, material science, math, biotech and computers via patents agreements (patent holders split the profits with government), I'd also stop subsidizing lawyers, MBAs, and many other disciplines, but I'd heavily subsidize the education of the first 4 since they are strategic. Why should I subsidize lawyers and MBAs? Why should I subsidize any professionals? There are a few I would subsidize because I, and everyone else, would benefit, like nurses and doctors. Physicists, mathematicians, material scientists and computer researchers give us the core technology we are going to need to stay competitive in a global economy. They are the people who are going to create the products we desperately need to sell to overseas customers.
2) give huge tax breaks to people who invest in conserving energy and heavily tax energy wasters. Cafe standards via tax breaks and heavier taxes. Conservation is far more effective than development. You want to waste strategic assets? Go ahead but pay heavily. This is a life and death matter for the US.
3) subsidize consumers, through tax breaks or feedback tariffs - the Solyndra debacle happened because an ignorant bureaucrat made a bad decision. Split the decision making among millions of consumers and the companies with the competitive edge, best tech, manufacturing and management will emerge. As opposed to giving a giant inefficient corporation a subsidy only because it's best at paperwork/lobbying and giving it an unfair competitive edge against smaller but more efficient companies that concentrate on products instead of bureaucratic expertise.
4) Change the tort system to a system where the loser of any lawsuit has to pay the winner's legal expenses up to the amount they themselves paid to their legal team. For example: If you spent 10K suing EXXON and lost, you'd be liable for 10K reimbursement to EXXON even if they spent a million defending themselves. If they sued you and spend a million they'd be liable for your 10K. Lawsuits are currently subsidized by the taxpayers, this would go a long ways towards making lawsuits financially dangerous without destroying the incentive for someone with a legitimate complaint.
* Although I don't like corporate subsidies, for the time being, temporarily, I'm content that leasing BLM land for less that market to solar and wind farms is a good thing. |
