Tuesday, December 23, 2008

Stimulus Should Not Depend on Health Care or Alternative Energy Invesments

There have been calls for Universal health care and green energy investments as part of a stimulus package. Universal health care and alternative energy are not going to be the paths that lead us to prosperity. There is no free lunch, if the government mandates the price of health care, then quality or supply must decrease. How many people will want to become doctors if they can only make $50,000 a year? Maybe the dishwasher today, but certainly the quality of the medical staff has to decrease. And why would anyone build hospitals or enter the health care industry with prices capped? They would find more productive uses for their capital, it just doesn't make sense. As for alternative energy, there is a cost, literally since it costs several times more than oil. That means Americans will have to spend more money to heat their homes, run their cars, and watch TV, leaving less for everything else. We will be poorer as a result, the stimulus from building wind and solar plants will be one time events. Plus would people be willing to pay more than double for alternative energy when they can get fossil based energy at less than half of alternatives? No, otherwise we'd be building a lot more wind and solar plants. We aren't because the demand isn't there, they aren't competitive, only government mandates are propping up these investments and that raises energy costs for Americans. You can't have it both ways. It's time to separate leftist dreams from real solutions. If you must, play a computer game where wind and solar are less expensive and no one wants to use oil. Actually, this idea is so ridiculous that I'm not aware of a game that operates under that reality.

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