There’s already a good example of this: Ethanol subsidies. The green movement championed ethanol for years as a ‘green fuel’, despite reams of scientific evidence suggesting that it would do very little, and in fact could have negative consequences for the environment.
But then the big agribusinesses realized they had a gold mine, and started heavily lobbying for it. The greens forgot their antipathy to big business, welcoming the ally. And so, hundreds of millions of dollars per year were allocated to to ethanol subsidies, making Archer Daniels Midland and Monsanto and others very, very happy.
Well, now we have solid evidence that the result has been very bad. Redirection of food crops into ethanol crops drove up food prices for poor people. The deficit is growing faster. Ethanol looks like it is actually a net energy sink. And yet, the subsidies remain.
And what’s worse, once subsidies are in place they are very hard to eliminate, because the market adapts. The markets in the old foodstuffs shifted elsewhere. The mix of equipment and land use today is quite different than it was before. So now if you cut the subsidies, these companies may not be able to recover that easily. It becomes yet another perpetual entitlement.
Let me tell you a story about the National Wool and Mohair Subsidy:
The Wool and Mohair subsidy was put in place to help make military uniforms. Because they were made of wool, wool was declared a strategic asset, and in 1955 the National Wool Act created the wool and mohair subsidy.
Five years later, synthetics replaced wool in uniforms, and the military removed wool from its list of strategic goods. But did the subsidy end? Not on your life. It continued until 1993, consuming about 60 million dollars a year in taxpayer money, until a series of critical articles about it created enough heat for politicians that it was eliminated. But not really - the subsidies were snuck back in the door in subsequent farm bills, no doubt under pressure from the goat industry that didn’t know what to do with all its goats once the gravy train ended.
If you can’t get rid of a Wool and Mohair subsidy when no one needs wool and mohair, you can’t get rid of much.
As another example environmental foolishness, my own province of Alberta is spending 2 billion dollars to build a carbon capture coal plant - a gesture meant to fend off the environmentalists attacking us for our tar sand development. We’re spending this money despite the fact that there is plenty of evidence that carbon capture is unworkable and highly energy inefficient, and so expensive that it probably won’t even be able to compete with wind and solar.
And now the Democrats want cap and trade, despite plenty of evidence that such a program will damage the economy and will do almost nothing for global CO2 consumption. And what’s worse, if it results in energy-intensive manufacturing relocating to China or India, where their factories are much less energy efficient, it could actually result in an increase in global CO2 output. No one’s really sure, because you can’t predict how the market will react when you push it around by fiat. But these concerns aren’t stopping the democrats. They’re charging ahead with the plan.
I’ve been repeating this like a broken record on this board - opponents of cap and trade and other big-government intrusions need to stop debating the basic science of climate change, because that is actually where the greens have their strongest arguments. They WANT to keep the fight there. Because once you get past the basic science and start looking at the economics and practical limitation and long-term predictions and all the rest of the creaky scaffolding of the climate change movement’s plans, it all comes apart.