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Re: pahtsan post# 121

Monday, 09/26/2011 10:50:08 AM

Monday, September 26, 2011 10:50:08 AM

Post# of 302
"Personally I don't think any private industry should be subsidized..."
I agree, sort of. But the issue is really complex. First, if established industries have enjoyed decades of subsidies, and we want to prime newer technologies (e.g. photovoltaic), then is it fair to expect newer technologies to compete? Even if you could magically remove all subsidies today, older tech has had a huge head start; a huge war chest to fend off new competition. It's like giving the Minnesota Vikings a 20 point lead at half time, then asking the lowly Detroit Lions to make a game of it in the 2nd half. Nearly impossible. Ooops, bad example...

Second, the U.S. can't control how other countries subsidize their businesses. So, do we sit idly by while countries like China eat our lunch? Do we become a country that China mines for raw natural resources, so they can add the value and export finished products to us? The international business scene is hypercompetitive, and certain governments have no qualms about wanting to become the #1 solar (or widget) manufacturer in the world, and will do what it takes to get there.

Third, if we remove all subsidies, we have to account for externalities, and hold companies to high standards. Things like trashing ecosysems; pollution; safety. Coal, for example, is heavily subsidized in the form of Big Coal passing massive external costs on to the public at large. Make them clean up their act, and make them pay for external costs that they haven't yet remedied. This would create a fairer environment for commerce to compete in.

Not saying solar is pollution free -- the recent Jinko Solar debacle proves that manufacturing can be messy. They should be held to a high standard too. Make them clean up their act, or make them pay dearly for the external costs.