The Hidden High Cost Of Green Energy

Posted January 27, 2015 by austrianaddict
Categories: Econ. 101, Government and Politics

Tags: , , , , , , ,

Government politicians and bureaucrats have been pushing Green Energy for years. The reason these central planners are pushing this is because as Robert Bradley Jr. has stated, “When Government tries to pick winners and losers, it typically picks losers. Why? Because the free market consumers pick winners to leave the losers for Government.

Even with all the Government regulations on the fossil fuel industry, and with all the subsidies and breaks the green energy sector has received, what’s left of the free market has chosen fossil fuels. Fossil fuels produce the most efficient energy at the lowest cost, which is why the market has chosen them to power our world. At some point in the future there may be a more efficient and lower cost source of energy, but not even Government power can bring this into the future before it’s time. When Government tries to bring the future into the present, which is also what they try to do when they electronically print counterfeit money, they create a misallocation of resources. In other words, they waste scarce resources because economic reality trumps the utopian vision of the world they are trying to impose on us.

No central planner or board of central planners, can produce a better order than the spontaneous order produced by millions of people cooperating and competing in the free market.

Here are some articles that explain why fossil fuels are better than green energy, and will be for the forseeable future.

150 Years Ago, Scholars Knew The Need Of Dense, Not Intermittent Energy, by Robert Bradley Jr. at instituteforenergyresearch.org.

Making The World A Better Place – By Using More Fossil Fuels, by Alex Epstein, at news.nationalpost.com.

Climate Alarmist Turn Back The Clock, by Viv Forbes, at masterresource.org.

Government Mandates Keep Electric Auto Manufacturers In Business, at instituteforenergyresearch.org.

Power Plant Closures, at instituteforenergyresearch.org.

 

THE STORY OF ELECTRICITY

Must Reads For The Week 1/24/15

Posted January 24, 2015 by austrianaddict
Categories: Must Reads For The Week

Tags: , , , , , , , , , , , , , , , ,
The pen is mightier than the sword...

 The pen is mightier than the sword… (Photo credit: mbshane)

Quote Of The Day: “Venezuela Must Deepen Socialism To Improve Economy” – President Maduro, at zerohedge.com. Moving toward socialism has created mile long lines for basic goods like toothpaste, toiled paper, and soap. So the obvious solution is to blame whats left of the private sector, and implement more central planning.

Shortages In Venezuela Have Created A New Profession: Getting Paid To Stand In Line To purchase Things For Other People, at dailymail.co.uk. Standing in line is one way scarce resources are rationed in a centrally planned economy. Who says Government intervention can’t create real jobs?

Did “Stealing From Americans” Just Stop? AG Holder Moves To End Civil Asset Forfeiture, at zerohedge.com. Thank you AG Holder for upholding the constitution, probably for the first time in your career.

What 4th Amendment? Police Across America Are Using Radars To See Inside Peoples Homes, at zerohedge.com. AG Holder, now that your on a roll, do something about this violation of our constitutional rights. Reattach the chains of the constitution around the neck of Government.

Bill Proposed To Allow Voting Without US Citizenship, at zerohedge.com. The 15th amendment says, “The right of citizens of the United States to vote shall not be denied or abridged by the United States or by any State on account of race, color, or previous condition of servitude.” It’s clear that only citizens have the right to vote, it doesn’t mention anything about non citizens right to vote being denied or abridged.

Obama Administration Won’t Let Hobby Lobby Decision Apply To Religious Groups, by John Lott, at johnrlott.blogspot.com. Big Government bureaucrats will not allow anybody to escape their tyrannical mandates without paying a heavy price. These same politicians and bureaucrats don’t have to comply with the Obamacare mandates they forced on us.

Maryland Parents Investigated For Letting Their Children Walk Home Alone, by Hanna Rosin, at slate.com. Whose decision should this be? The parents, who know the children best, or a nanny state bureaucrat who doesn’t.

There’s No Inflation Unless You Eat, Heat Your Home, Get Sick, Travel, Go To School Mail Letters, Or Do Your Taxes, at lewrockwell.com. Look at the price increases on all of the items listed in this article.

Questions And Answers On The Individual Shared Responsibility Provision, irs.govaffordablecareact. I love bureaucratic propaganda. “The Individual Shared Responsibility Provision” is a another way of saying a fine or tax (whichever word John Roberts wants to use today), for not having health insurance as mandated by Obamacare. Who thinks a phrase like, “individual shared responsibility provision”? That’s right, someone who is trying to deceive people. Just scan some of the language in this IRS publication, it will make you sick.

Amazing Ambulance Drone, at economicpolicyjournal.com. Ambulance drone gets to an emergency much quicker than an regular ambulance. Another interesting way to use technology.

Elon Musk To Build Hyperlink Track, Likely In Texas, by Jacob Pramuk, at entrepreneur.com. A system that transports people in pods through tubes at 600 mph. You could go from LA to San Fran in 30 minutes. Is this even possible?

NJ Turnpike I-95 Crash Black Ice Trailer Flip, at youtube.com.

Who was luckier, the guy taking the video or the truck driver being filmed?

 

Let’s End The Week With Some Humor

Posted January 22, 2015 by austrianaddict
Categories: Miscellaneous

Tags: , , , , ,

Here are some cartoons to help us get through the week.

Political Cartoons by Lisa Benson

sheep

Here are some more cartoons at theburningplatform.com.

 

Why Stop At Community College? Let’s Make Everything Free!

Posted January 20, 2015 by austrianaddict
Categories: Econ. 101, Government and Politics

Tags: , , , , , , ,

President Obama wants to make tuition free at 2 year community colleges. Here is an excerpt from the White House Fact Sheet: Free Community College For Responsible Students, at whitehouse.gov: “Today the President is unveiling the America’s College Promise proposal to make two years of community college free for responsible students, letting students earn the first half of a bachelor’s degree and earn skills needed in the workforce at no cost.

WHAT IS AN ECONOMIC GOOD

College education can’t have “no cost”, because it is an economic good. No matter how much the Presidents utopian vision of the world tries to tell us it isn’t an economic good, it is. What is an economic good? It is a good that is scarce and/or has to be brought to the market by the use of labor and capital. In other words it has to be produced. Air and sunlight are examples of non economic goods because they exist in abundance without having to be produced by anyone. There are very few non economic goods.

Someone has to pay for an economic good. The producer pays the original cost for the production of an economic good. If the good can’t be exchanged at a price that covers the cost, plus a profit, it tells the producer that there is no market for the good and the producer will cease production and absorb the loss.

I love the phrase “AT NO COST“. There is no such thing as, at no cost, in a world ruled by scarce resources that have alternative uses. Economic goods always have a cost and no amount of rhetoric can escape this reality. Political rhetoric is an attempt to shift the cost to someone else. I suspect we, the tax payers, are going to be forced to pay the cost for this new “free” good. Let’s take a look at this from another angle. Instead of shifting the cost of community college to the tax payers, lets see if we can shift the cost to some other individuals.

LET’S MAKE EVERYTHING FREE!

If educating our children is so important that we need to make it free, let’s make the professors volunteer to teach at no cost. Let’s make the workers at the colleges provide their services at no cost. Let’s make text-book companies provide their books at no cost. Let’s make businesses who support the infrastructure of the college provide their good of service at no cost. This would lower the cost of college significantly or possibly make it free if we went far enough down the chain of production.

What would happen if Government bureaucrats mandated that every good and service was free? Would you continue to work as many hours at your job, or would you spend some of your time doing other things that are now free? Anybody with a degree of common sense knows that this wouldn’t work. No one would provide their good or service for free. People trade their good or service for money, and then exchange this money for other goods (food, clothing, shelter, etc.) that allow them to survive every day. If everything was free they wouldn’t need to work.

When you went to the grocery would you choose the ground beef you’ve always purchased, or would you upgrade to ground sirloin or a T-Bone steak? When it was time to get a new car would you choose a used car like you’ve always chosen or would you get a new car?

Do you see the problem? People will choose to consume more things and different things than they would have when there was a price on goods. People will also produce less because they know they can get what they want for free without any corresponding production. We can’t escape the reality of the world we live in. We live in a world of scarce means that have to be used to satisfy the unlimited ends desired by all individuals. Scarce resources, time, labor, and capital have to be rationed in some way. There are three ways to ration scarce resources: 1) through prices in a free market economy, 2) by bureaucrats in a centrally planned economy, 3) or by fighting over them. Voluntary cooperation in a price coordinated free market economy uses scarce resources in the most efficient, and satisfies the most desires possible out of the unlimited number of desires by individuals. There is no other way of rationing scarce resources, that currently exists, that can come close to what the free market has produced.

Free college isn’t free, the cost is just shifted. This is what Obamacare is attempting to do, shift the cost of healthcare to the taxpayer. This is what welfare and food stamps do. This is what Government subsidies to big businesses do. As more is made free by Government officials, less will be produced in the free market. Central planning ultimately leads to a lower standard of living, or as F.A. Hayek has said, it’s “The Road to Serfdom“.

OTHER OBSERVATIONS ABOUT THE FACT SHEET

Here is another excerpt from the fact sheet; “Responsible.. students who attend at least half-time, maintain a 2.5 GPA while in college, and make steady progress toward completing their program will have their tuition eliminated.

Why is the President going to discriminate against students who, through no fault of their own, are irresponsible. Why should they be made to pay? Why should there be a cut off at a 2.5 GPA? Why not 2.2 or 2.0? What heartless bureaucrat arbitrarily chose 2.5? Shouldn’t it be more like our graduated income tax? Wouldn’t it be “fair” to gradually increase the amount a student would pay at each incremental point they receive below a 2.5 GPA? The President is being mean and unfair, which are the very qualities he paints his political opposition with.

Read the fact sheet. It is a piece of political propaganda that would make Joseph Goebbels blush.

 

Must Reads For The Week 1/17/15

Posted January 17, 2015 by austrianaddict
Categories: Must Reads For The Week

Tags: , , , , , , , , , , , , , , , ,

 

The pen is mightier than the sword...

 The pen is mightier than the sword… (Photo credit: mbshane)

THE HIGH COST OF GREEN

NYC Mayor De Blasio Just Banned Another Common Product, by Phil Hall, at thefederalistpapers.org. He is banning Styrofoam, which is used in such things as Styrofoam containers for food by restaurants and packing peanuts used in shipping and storage. De Blasio said, “…We have better options, better alternatives,……and those alternatives will soon become more plentiful and will cost less.” The Mayor apparently understands the concept that a greater supply reduces the price. But does he understand that if there is a lower cost better product it will be supplied by the market. If you ban something, obviously the next best lower cost alternative will take the banned products place. Oh the cost of being green.

Unrealistic Offshore Wind Project Gets Plug Pulled, by Phil Hall, at thefederalistpapers.org. National Grid and NStar ended contracts with Cape Wind because it missed the Dec. 31 deadline to obtain financing for the project. Even with the Federal Government willing to provide a $150 million loan, backed by your tax dollars, they couldn’t scam the private sector into financing the rest of the project. At least the Government didn’t mandate the wind farm be built. Voluntary exchange in the market just saved the tax payer $150 million. (Read more here, Cape Wind Is Dead at masterresource.com.)

EPA New Methane Regulations Aimed At The Fracking Industry, by Michael Casey, at cbsnews.com. Since shutting down Federal lands to the fracking industry didn’t stop shale oil production, the administration is going to use EPA regulations to try to put the fracking genie back in the bottle. This is just like the administration’s ‘war on coal’. The administration’s war on carbon based energy is really a war on American citizens. Even though economic reality will eventually win against Government central planners, the cost of the interventions will be paid.

THE STATE OF THE ECONOMY?

Yes Some Companies Are Cutting Hours In Response To Obamacare Mandates, at economicpolicyjournal.com. Employers are capping workers hours in response to the Affordable Care Act’s employer mandate. Another example of Government regulations hurting the people it’s trying to help.

Business Closures Now Out Number Business Start Ups, by Jim Clifton, at gallop.com. For the first time in 35 years the number of companies going out of business was higher than the number of business start-ups. This is due to economic forces correcting for the interventions into the market by Federal Government regulations, and the Feds artificially low-interest rates and electronically printing counterfeit money.

Labor Participation Rate Drops To 38 Year Low; Record 92.8 Million Americans Not In Labor Force, at zerohedge.com. Production creates wealth and consumption destroys what has been produced (wealth). Is an economy growing when the number of people who are producing is shrinking even though they are still consuming.

THE DYNAMISM OF THE MARKET

3D Printed Model Heart Helps Doctors Save A Little Girls Life, by Anthony Domanico, at cnet.com. This 3D scaled replica of this 4-year-old girl’s heart helped doctors plan for surgical options that may not have been possible without 3D printing technology.

Man Saves Wife’s Sight By 3D Printing Her Tumor, by Sara Breselor, at makezine.com. This husband, with no medical background, used his knowledge of 3D graphics and printing to save his wife after she was misdiagnosed by doctors. He 3D printed a model of his wife’s skull and shopped it around to neurosurgeons until one agreed to try a different kind minimally invasive procedure rather than actually cutting open her skull, lifting the brain, and removing the tumor. He has unknowingly pioneered a new way of medical diagnosis.

The Left’s War On Uber, Sharing, And The Poor, by Andrew Syrios, at mises.org. This article shows some of the new businesses models like Uber, Lyft, RelayRides, FlightCar, Airbnb, Kickstarter, and Prosper, that are competing with status quo business models. The status quo businesses are lobbying Government to get rid of their new competators instead of spending their time trying to provide a better product or service for their customers. Economic forces, not Government, will decide who wins.

LET’S LIGHTEN IT UP A LITTLE BIT

Venus Williams And The Best Ball Boys In The World, at youtube.com.

Top 10 Things That ‘Will” Happen In 2015, at zerohedge.com. I don’t think so.

 

 

 

 

“Must Read” Leftovers From Last Week

Posted January 13, 2015 by austrianaddict
Categories: Leftovers

Tags: , , , , , , , , , ,

 

Price And Currency Controls Result In Venezuela’s McDonald’s Running Out Of French Fries, at economicpolicyjournal.com. Free market prices coordinate supply of, and demand for scarce resources. Venezuela is once again proving that Government price controls lead to shortages. Economic forces always win.

Oh Boy Argentina Faces Tampon Shortages, at economicpolicyjournal.com. Another example of Government restrictions and price controls leading to shortages. Scarce resources can either be rationed by prices in a free market, by Government in a socialist system, or by fighting over them. Do Government bureaucrats have enough knowledge to ration tampons?

Why Recording The Police Is Important, I saw this video at libertypenblog.blogspot.com. Both the police and the public will treat each other with more respect if their contacts with each other are being taped. Watch the video below.

Detained For 19 Days: Immigration Check Refusal Gone Wrong, by Zach Weissmueller, at reason.com. Here is why these contacts need to be filmed. Greg Rosenberg is a naturalized American who immigrated from Armenia 10 years ago. Knowing and exercising his rights at an immigration check point inside the US border, caused the officers to become upset that he challenged them, which led to him being jailed for 19 days for resisting arrest. He wasn’t allowed to see his lawyer for two weeks after requesting a lawyer. After 19 days, the Government dropped its case and dismissed all charges because there was no case to be made against Mr. Rosenberg. This was an obvious case of Government officials abusing their power.

Ethanol Policy Reform – The Rare Case Where Environmentalists And Energy Advocates Agree, by Marita Noon, at cfact.ort. The EPA can’t even tell refiners how much ethanol to put in gasoline supplies as mandated by it’s own Renewable Fuel Standards statute. This is another example of central planning by Government officials being trumped by reality. Central planners utopian visions can’t exist in the real world of scarcity.

Psychiatrists Now Say Non-Conformity Is A Mental Illness: Only The Sheeple Are “Sane”, by Jonathan Benson, at naturalnews.com. This is an attempt to diagnose people who reasonably question Government policies with a mental illness. Characterizing non-conformity as a mental illness is the hallmark of totalitarian government. Here is an excerpt from the article, “Psychiatric incarceration of mentally healthy people is uniformly understood to be a particularly pernicious form of repression, because it uses the powerful modalities of medicine as tools of punishment, and it compounds a deep affront to human rights with deception and fraud,” explains a 2002 analysis and commentary on the abuse of psychiatry in both the Soviet Union and China that was published in the Journal of the American Academy of Psychiatry and the Law”. The State doesn’t like to be challenged. Unfortunately for them you can’t put that Genie back into the bottle.

Must Reads For The Week 1/10/15

Posted January 10, 2015 by austrianaddict
Categories: Must Reads For The Week

Tags: , , , , , , , , , , , , , ,
The pen is mightier than the sword...

 The pen is mightier than the sword… (Photo credit: mbshane)

7 Things The Middle Class Can No Longer Afford, by Elizabeth Allen, at thefederalistpapers.org. This partial list shows the gradual decline in the standard of living for the feudal serfs, although our feudal lords (people in Government, crony capitalists, and wall street banks) are doing quite well thank you.

For The First Time Since Gallop Started Polling, People Say The ‘Biggest Problem’ In America Is ‘The Government‘, at targetliberty.com. We’re starting to crack the bolder about the myth of benevolent Government. Keep swinging the sledge-hammer.

Harvard Professors Are In An Uproar The Healthcare Advice They Gave Us Is Being Applied To Them, at economicpolicyjournal.com. “What! We have to abide by the rules the serfs have to follow! I thought we were a part of the ruling aristocracy!”

Minimum Wage Hike Forces Nonprofit Restaurant To Close, by Michael Saltsman, at economicpolicyjournal.com. I bet the Republican legislators are patting themselves on the back for how charitable they were to minimum wage workers when they raised the minimum wage. I have a math question for them, what’s zero times any number?

The Future Is Changing: South African Man 3D Prints A Working Lawn Mower, at economicpolicyjournal.com. We will not recognize the change that’s coming because we will be living inside the change. It will be incremental and therefore barely recognizable. You don’t notice how you’ve aged if all you do is look in the mirror everyday. But if you look at a picture of yourself from 20 years ago the change is obvious.

2015 Could Finally Be The Year We Can Cut The Cord, by Bryan M. Wolfe, at appadvice.com. Another example of how things are changing. Cable and satellite TV are losing market share because of the advance of technology.

Uber Is Going To Eat Your Children: The Top Tech Trends Of 2015, Kevin Maney, at newsweek.com. The Uber model is being tried in other industries. GlamSquad, BloomThat, and GreenPal are examples.

Towns Close Sledding Hills Because Of Liability Fears, at nydailynews.com. I guess all of us must be held responsible for the actions of particular individuals. This is what happened in the TARP bailout of 2008. Wall street was bailed out of their irresponsible actions by the tax payers.

Acceptance Rates At US Medical  Schools Reveals Discrimination Against Asians And Whites, by Mark J. Perry, at carpediemblog. Acceptance standards for medical school applicants are being lowered. When you lower standards, you get lower quality. As Thomas Sowell says, “Lowering standards for those unable to meet them only endangers the very benefits those standards produce. Standards do not exist for no reason.”

Sharyl Attkisson Sues Administration Over Computer Hacking, by Howard Kurtz, at foxnews.com. Sharyl Attkisson is a journalist who isn’t going to be intimidated by Government officials. This push back against Government encroachments on our freedoms is hopefully gaining momentum.

The Most Powerful Image About “Radical Muslims” And “Radical Christians“, by Steve Straub, at thefedralistpapers.org. The contrast between the two is 180 degrees apart.

Cartoonists React To Charlie Hebdo Massacre With Ink And Pen: by Steve Straub, at thefederalistpapers.org. “The pen is mightier than the sword.” Here are a few examples.

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