One of the most popular arguments against government “intervention” in alternative energies and the green economy is that government regulations are always inefficient, they slow the natural progress of the economy, markets work best when they’re totally unfettered, etc. Stuff like that. The jatropha-in-Myanmar post a couple of days ago might even lend that argument some support.
But the capitalism-loving, -touching, and -squeezing heads of huge companies like BP, GE, and Dow Chemical disagree- they’re urging the government to come up with a coherent energy policy that favors energy efficiency, clean fuels, and even carbon taxes. They contend that the piecemeal regulations the Bush administration half-heartedly doles out are costing America jobs, and US companies the chance to compete internationally. Apparently, since European countries tend to take alternative energies like nuclear and wind seriously, their governments have created favorable investment climates around those technologies- and the clean tech money is settling abroad.
GE’s Chief Executive Jeff Immelt makes a case for government subsidies, carbon trading, and investments in clean technology from a purely business standpoint- and to the free-market crowd, he has a response. From the WSJ’s “Environmental Capitol” blog:
And government largess helps drive progress—like in GE’s aircraft engine division half a century ago. That admission riled free-market types in the audience (and on stage) who took him to task for subsidy-hunting and accused him of—gasp—betraying his capitalist credentials.
“Don’t worship false idols,” he countered. “The government has its hand in every industry. If we have to have them, I’d prefer they were productive rather than destructive.”
Defending the “free” market is quixotic in the most literary sense, as the pure market is the pure Dulcinea: entirely a product of fevered imaginations. I’ve ranted about it here before, but observe that very successful capitalists realize this, and gamely play the market (and government) by the existing rules. There’s money to be made in clean technology (even capitalists who think global warming is a fraud know this and invest accordingly), and there would be even more of it if the US government stopped noodling around.
Last month, BusinessWeek reported on how the Bush Administration’s failure to lead on clean energy policies has left it to the states to invent their own. The magazine pointed out that a sustained federal push was essential for bringing the US up to speed in a clean tech economy already dominated by foreign companies- but not to hope for that push from Mr. Bush.
Maybe next year your dreams will come true, practical capitalists.



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