Congress Signals Subsidy for TVs

Comments

1. lovinlivininmississippi says:

   11/14/2005 at 8:02 am

   My message to these looters.. What’s next, subsidies for owners of cars that use steel camshafts so that they can upgrade to a “clean car? ”

   Fascinating what takes place in the U.S. Senate these days, The House as well. So, let me get this straight….here is the essence of the arugment:

   “Consumers paid good money for their TVs with the reasonable expectation that they would receive broadcast signals over their useful electronic life,” the groups wrote. They also said it’s not an argument over a right to watch TV and said the payment does not constitute a subsidy to consumers. “Congress isn’t giving them anything,” they wrote. “It merely holds them harmless from a government mandate that would otherwise make their perfectly good personal property virtually useless.”

   So, let’s assume for the moment that the technology is available today to move to a 42 volt electrical platform for the passenger automobile (in fact, it is ) and let’s assume further the the electification of the drive train is merely two years away. New autos coming off the assembly lines in Japan, Korea, China and the U.S. will be sporting silicon controlled electric actuators (replacing camshafts). Belts, shafts and chains will all be replaced by an elaborate yet highly efficient array of servo motors, sensors, silicon electric drivers and digital power switches. Efficiency, top end speed, everything we equate with quality in the design and manufacture of an automobile will seem to be an advance of light years. The mechanical-hydraulic will shortly be replaced by the digital electric. When congress catches wind of these pending developments it will be a matter of time (very short) until some brainless legislator (probably a Republican) introduces legislation mandating the electic drive train.

   Then what?

   Here’s what, all those people who purchased new cars a year or two before the mandate will need a subsidy to trade in their “dirty cars” for “clean ones.” The very same illogic can be used; after all, this is no different than moving from analog tv to digital tv? We’re simply moving from mechanical-hydraulic to digital electric – shazam, we need a subsidy to speed this up, after all the earth is at the brink of environmental catastrophe!

   The idea that government should be in the business of manipulating business and incentivizing taxpayers to purchase or not purchase goods is bad policy and worse economics. First, it puts the consumer into the category of a mindless sheep who simply cannot know nor should have any risk for his or her purchases. If technology changes, a subsidy is warranted on this premise – it is a slope without friction! Secondly, it is horrible economics, because as a businessman I am now looking to the government as the protector of my profits. Such a policy only reduces innovations and takes money away from other, more desired purchases, and redistributes them to the pet project of the moment for the government. Remember the broken window fallacy? Well, it applies here as well.

   That 3 billion should be completely cut from the budget – it is unnecessary government spending that will take away expenditures from many other areas and focus it into one specific area (and a very small group of manufacturers, many of whom have production facilities outside the United States). I have no problem with producing goods and services overseas, but for our government to be subsidizing such production through this type of redistributive manipulation is bizarre at best. I just wonder if that Senator from Texas has any close connections with the electronics manufacturers who will stand to gain tremendously by this focused subsidy. Oh, and while I am at it, a subsidy does not become something else just because a congressional representative says so… If that were the case, then we could simply argue that taxes really aren’t taxes anymore – why? Because my senator said so…

   “When money ceases to be the tool by which men deal with one another, then men become tools of men. Blood, whips and guns – or dollars. Take your choice – there is no other – and your time is running out” F.D. in A.S.

Leave a Reply

You must be logged in to post a comment.