Barack Obama, the handsome, well—spoken first term Senator, who seems to be the Democratic Party's Great Black Hope, is offering policy prescriptions, and they seem to be uninpressive warmed—over discredited leftist boilerplate. Subsidies for corporations to induce them to do what the market will not. Chicago Business reports an AP dispatch:
Obama said the government should provide tax breaks and loan guarantees to show the way toward greater use of environmentally friendlier energy sources.
He cited several pieces of legislation he has introduced in Congress, including one to help defray the auto industry's costs of investment in more fuel—efficient cars. It calls for the federal government to pick up a portion of the costs automakers pay for retiree health care, so long as companies use some of the savings to retool their factories.
Obama said the Big Three domestic automakers spent $6.7 billion on retiree health care costs in 2004.
"It's a win—win proposal for the industry — their retirees will be taken care of, they'll save money on health care and they'll be free to invest in the kind of fuel—efficient cars that are the key to their competitive future," he said of the legislation.
This amounts to taxing average Americans to underwrite the lavish health care benefits enjoyed by semi—skilled assembly line workers, whose unions managed to destroy the competitiveness of their employers. Most of us can't afford the gold—plated health benefits. GM can't afford them either, any more. But Obama thinks the government should force us to pay for them.
The use of corn—based ethanol in fuel should be encouraged, he said, supporting tax breaks for companies to install the necessary tanks on their cars and for consumers who use E85, a blended fuel.
"Unless we free ourselves from a dependence on these fossil fuels and chart a new course on energy in this country, we are condemning future generations to global catastrophe," said the first—term Democrat.
Decatur, IL—based Archer—Daniels—Midland will certainly appreciate this policy. But the energy consumed in manufacturing and distributing ethanol is so expensive that it doesn't really pay off commercially. If it did, the government wouldn't have to "encourage" it by tax—exemptions and other subsidies.
Obama looks like an empty suit.
Thomas Lifson 4 3 06
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