Post by
stebo0728 »
https://forums.nicoclub.com/stebo0728-u126596.html
Sun Jul 22, 2012 1:49 pm
BBB, I'm with you on subsidies. As a conservative, I often rail against welfare, but conservatives also have to realize that subsidies are also a very real form of welfare. When the government decides to subsidize, yes it may have very compelling reasons, but its none the less a manipulation of the free market. The only place where I am in a bit of a boggle on subsidies is farm subsidies, and only because it seems without them, farmers might have a bit of a quarrel with producing enough food for our glutton of a country. But when you stop and thing about it, farm subsidies are sort of a backend form of welfare, they take our tax dollars (those who actually pay taxes) and use them to artifically lower the cost of food production. This really boils down to redistribution of wealth. The tax dollars of the wealthy are used to subsidize food production, so that those who dont pay taxes can benefit. Without the subsidies, the wealthy could take the subsidy component of their tax and use it to bolster their budget to buy the more expensive food, but what would the poor do when they were paying no tax in anyway? Still, Im convinced that the free market could develop ways to improve farming, lower costs, but theres no incentive to do so, since the subsidies are there, and to rip them away now might prove to be dangerous. However, HOWEVER, I do have a huge problem with the fact that we subsidize corn production for the production of ethanol. Corn ethanol is a breakeven technology, and if production efficiency dwindles, it becomes a net loss, because even at peak efficiency, the amount of energy required to produce it is only breaking even with the amount of energy it yields. Now sugar cane ethanol is another story, but corn, thats the biggest sinkhole for subsidy money. The government should just completely exit the market system, save health and safety regulation and oversight. But even there, corruption manipulates the market. An example:
I work in the propane industry. The National Fire Protection Agency (NFPA) regulates this industry, with Pamphlet 58, which is the code book regarding propane system. We are currently battling some new regulation that has ZERO basis in safety, and 100% basis in market manipulation. The regulation in question would require all connection fittings to be both branded by vendor, and marked for UL listing. This was initiated by ONE manufacturer of corrugated stainless tubing and connections, because upon inception of their production line, they set up to brand their fittings this way. Upon noticing that the next to ZERO of the competition does this, they put the pressure on, and snuck the regulation in through committee nonsense, that no one was paying attention to, and it stuck. Now was that a failure of committee? Sure, but the source of the regulation was market manipulation, it had ZERO to do with safety. That sort of nonsense is what has NO place occurring.
Long and short? Yes Im against subsidies, just as Im against government directly influencing the market, by streching and manipulating law to save certain players, REGARDLESS of how big they are. In my opinion, there is no such thing as TOO BIG TO FAIL. Not a car company, not a bank, not a foreign country. Theres always someone or someone(s) just itching for a big player to fail and get out of the way so they can have their chance. They shouldnt be able to use the government to break down the big player, but the big player should not be protected by the government either. Move out of the way and let the market work. If something isnt safe or healthy (really no trumped up) then the government has a say, otherwise stay out!