Wednesday, May 30, 2012

Incentives and Subsidies

The first is good, the second not so much.  The first makes you more efficient, the second makes you less so.  You see, as long as someone else, especially a someone else with a seemingly unlimited supply of money, is willing to pay your bills for you, you have no incentive to save or make money.  You can just do whatever you feel like doing, without worrying about whether it actually makes sense.  When you have to pay the bills yourself, you have to figure out a way to make money, or you'll go out of business.

Without subsidies, the so-called green energy industry will figure out a way to be more efficient and make money.  Or it won't.  In which case it will be an idea whose time has not yet come, if it ever does.

Spain Ejects Clean Power Industry with Europe Precedent: Energy

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