Thursday, August 7, 2008

Run to the White House

Well the candidates are out trying to make themselves look different so that they will be chosen. Both want to focus on more expensive renewable resources. In order to give these energy sources a chance, they will have to subsidize them. This means they will take money from people who do not want to spend their money on expensive alternate energy sources by force. If the people were willing voluntarily to spend their money for renewable energy, taxes and subsidization would not be necessary. However, people are hurting right now and have less money.

How many jobs will be lost with the taxes required to fund this? Think the government can tax and not kill jobs? Where do you think the tax money comes from? The people who rightfully won this money would have either spent this money or invested it. Either way, it would have gone towards businesses who would have used it to hire more people or invest in more land or capital which goes to create jobs there or moves on to other businesses.

Since the jobs lost are spread through out the economy and the jobs created by the spending are isolated and easy to count, most people do not realize that more jobs are lost by government spending then are created.

So you will spend more on energy and will be worse off financially. But it will be done by taxing or by borrowing, which takes the money that would have been invested into the economy to increase production and reduce prices.

The best solution would be to reduce taxes and end the monopoly on energy. When people have more money and have many energy options, they will choose cleaner energy sources even if they are more expensive.

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