Subsidies

(11/19/2009) - One of the main tenants (if not the main tenant) of mainstream “conservative” economics (i.e. those supported by large, pro-business organizations like the Club for Growth of the American Enterprise Institute (AEI), or the Republican Party, but not necessarily all that consider themselves conservatives) is that the world works better when Government stays out of people’s business.

One of my main problems with these organizations is that they tend to be very selective when complaining about government-supported projects.  They are, for instance, usually in favor of increasing military spending.  The programs large conservative groups tend to focus on do have one thing in common – they are issues supported by many economic liberals.  Trains, social welfare, unions, support for bike lanes, the US Postal Service, climate change – these issues and organizations are perennially by conservatives as punching bags. 

The problem is that when “liberal” and free-market economic principles align, the big conservatives groups tend to grow silent because their existence seems dependent on opposition to liberal values.  It’s a shame.  It think the country could be improved greatly if they allied with liberals on common agendas, but that would make Obama and liberals look too good, so I don’t expect to see it happen.

(4/1/2009) - I was at the gym the other day, and on the T.V. they were talking about a so-called Cash for Clunkers program the government was considering.  At first, this struck me as a waste

Here’s how the program that Congress is considering would work.  If you have a car at least eight years old, the government will buy it from you for up to $5,000 (less the older the car is).  

The plan is intended to have at least two effects.  First, the program is designed to have some stimulus effect on the economy and the beleaguered car manufacturers in particular.  Second, taking older, less fuel-efficient cars off the road will reduce the use of gasoline.