Something just struck me this morning. Obama and many on the left are all for “investments” in alternative energy. These “investments” would otherwise be referred to as corporate welfare if it was an “investment” in something they didn’t like.
Why is it corporate welfare? Because it is corporation that will be manufacturing the solar panels and wind turbines and all of the other “alternatives” that will benefit from these so-called investments.
The other thing that struck me is that these corporations will be energy companies, because it’s not like organic tomato farmers build large energy projects. These energy companies generally produce a wide portfolio of energy products, of which, evil oil is one of them.
This presents a hilarious irony that while Obama is railing against the windfall profits of the oil companies, he is proposing to subsidize these very same companies.
Only a progressive politician thinks we will benefit from penalizing a revenue generating industry (oil profits generate tremendous tax revenue) and subsidizing a revenue consuming industry (alternatives are not profitable without subsidies and will consume tax revenues).
Chevron - http://www.chevron.com/deliveringenergy/
Exxon-Mobile seems to not benefit because a lack of interest in business that rely on subsidies. They'll change their mind if oil becomes unprofitable.
BP - http://www.bp.com/modularhome.do?categoryId=8050&contentId=7035481
They are even nice enough to provide you a link to the incentives.
Shell - http://www.shell.com/home/content/shellsolar
They don't care what they sell, but whatever it is it will have achieve the acceptable rate of return on the investment. If that profit comses from corporate welfare or the free market, they really don't care.
This scheme is a disaster on all fronts.
Producing oil in America is less competive with foreign oil because of higher tax rates, which will increase our demand for foreign oil.
Reduced production of American oil by American companies will reduce American profits, American jobs, and American tax revenue.
Balancing the budget will be even more challenging as we supress a tax generating industry and replace it with a tax consuming industry, which is going to be a big net hit to the budget deficit.
I hope Obama and Pelosi can save the planet, because they are going to beat the crap out of America in the process.