And On The Other Hand

And On The Other Hand

Not the Best Business Model

I am not a fan of government subsidies, but I realize that in the real competitive world, there are many pressures which lead to subsidies

Picture of Barry J. Klazura

Barry J. Klazura

March 22, 2021

I am not a fan of government subsidies, but I realize that in the real competitive world, there are many pressures which lead to subsidies in some start up industries, those involved in international trade, etc. Which raises the question of would you invest in a company that is breaking into a mature market but which requires a subsidy which was 48 times larger than its competition to compete? No? How about one that requires a subsidy 211 times that of its competitor to compete? That is the situation with wind and solar energy according to the Texas Public Policy Foundation. This raises several questions, such as 1) how long will all tax payers be willing to subsidize Tesla drivers and Elon Musk, 2) when the subsidies end, will the average American be able to pay the actual market price of wind and solar power, 3) could there be a better use for the subsidy monies and 4) when reality does descent on us, will those who have lead us along a prime rose path pay any price? I doubt it. This article should make you think about the real price of “free” energy. https://www.wsj.com/articles/texas-blackouts-blew-in-on-the-wind-11616192622?page=1

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Written by Barry J. Klazura

Writer, historian, and financial advisor. I studied Political Science at Loyola University Chicago and have spent a lifetime reading history. I write because the mainstream will not ask the hard questions. 

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