Living has risks. Government should not prohibit things that are not proven safe.

The Des Moines Register recently published a report about Madison County Boar of Supervisors considering a requirement that wind turbines be setback 1.5 miles from the nearest home.  Ben Johnson, a cardiologist who lives in Madison County was quoted as saying, “Industrial wind turbines have never been proven to be safe, nor free of adverse health effects,”

It is difficult, if not impossible, to prove that anything is safe or free of adverse health effects.   For example, driving or riding in a car at any speed has never been proven to be safe. No amount of second-hand barbeque smoke has been proven safe.  Eating chocolate has never been proven free of adverse health effects. We live in a risky world. It would be impossible to live our lives if we were prohibited from doing anything that was not proven safe or free from adverse health effects.

We should not have policies that prohibit things until they are proven safe or free of adverse health effects. Unless something is proven to be unreasonably dangerous, it should be allowed.

No need to be energy independent.

In a letter to the Des Moines Register today, 6/24/2015, Jacob Hession advocated for American energy independence and for the renewable energy Production Tax Credit.

We need to be energy independent just like we need to be food independent, clothing independent, pharmaceutical independent, electronics independent… – that is, we don’t need to be independent.

World-wide free market capitalism is a wonderful thing. It gives us a more varied and consistent supply of pretty much everything we need or want. If there is a shortage of anything anywhere around the world, there are people in other parts of the world who will rush to supply what is needed.  Shortages mostly occur where trade is restricted and protected.

Any call for for a certain type of “independence” or “security” is usually cover for special interests who will benefit if we protect them from competition or give them special benefits.

What we really need to do is end special protections and subsidies for all forms of energy.  Free market capitalism has done more to provide for the security and dependability of the supply all types of products than any scheme devised by government.

LInk to Register article: http://www.desmoinesregister.com/story/opinion/readers/2015/06/24/renewable-energy-hession/29196411/

The new welfare dependent class – businesses

If seems as if all businesses now require some type of welfare program.  The definition of economic development is grants or loans or special tax breaks given by our government to businesses.  Banks get their welfare indirectly – from loan guarantees from many government programs.  Of course our farmers must be protected from losses by government – through crop insurance subsidies that not only cover natural disasters, but actually protect against price declines.  All types of energy companies receive special tax credits or tax breaks.  The biggest manufacturers in Iowa receive large tax credits for research.  Now, Mediacom and John Deere want a grant of $800,000 from the federal government to help bring high speed internet to farmers who buy high-tech, internet connected tractors that cost hundreds of thousands of dollars.  We should say no!  We need to reverse the trend of expecting taxpayers to fund all types of economic development.  Just as with with individuals and families, welfare for businesses create dependency.  Our economy will continue to grow sluggishly as long as we look to government to manage our economic development.

Wind energy jobs created?

“Iowa has enjoyed tremendous economic benefits by being a leader in both wind power development and wind manufacturing.”  So wrote Mike Prior, Milford, interim executive director, Iowa Wind Energy Association, in a letter to the editor on 2/4/2012, (“Wind energy is important jobs provider”)  He went on to extol the many benefits that Iowans have enjoyed as a result of the funding that taxpayers have provided to those in the industry.  He urged that we, “… continue to invest in Iowa’s future.”

Good economic analysis must consider both what is seen and what is not seen.  We see the jobs.  We see the payments to farmers.  What we don’t see are the other jobs that would have been created if people had been left to spend or invest their own money.  Other jobs would have been created that would not be dependent on government handouts.  Instead, we hear a never-ending story about how we must continue to provide taxpayer support or the investment and jobs will be lost.  This is very typical when government creates new “incentives” and makes “investments” in what should be left to the private sector.

Welfare for wind energy producers is like all other special interest giveaways: the benefits are large and concentrated among the few who who are politically connected, and and costs are relatively small and disbursed among many taxpayers. This is a classic case in public choice theory.  Those who directly benefit have a great incentive to lobby government to continue the subsidies, and those who pay the taxes don’t have a strong incentive to oppose any specific program.

We need legislators who will stand against political favors for special interest factions who press their political power for their own self interest.

Link to Register article:  http://www.desmoinesregister.com/apps/pbcs.dll/article?AID=2014302040081

Go ahead with Sequestration cuts

Maybe it would be best to let the Sequestration spending cuts to take effect.  It appears that elected politicians are unable to make significant cuts to any specific federal spending items.

If cuts could be prioritized, here would be my short list in order of priority:

• The Medicare eligibility age should be coupled with Social Security and they both should be gradually moved to age 70.  The federal government should not be responsible to pay for 15 – 30 years of retirement for healthy adults.  (see below)
• Freeze the dollar amount of federal spending on Medicaid – block grant the money to the states and let States decide on the priorities.  There will always be more demand than there is supply for free medical care.
• Cut military spending, in actual dollars, by at least 5%.  Let the defense department decide on priorities to give us the best defense that the budget can buy.  We would still have greatest defense on Earth.
• Eliminate the Dept. of Education – leave education to the states entirely.
• Limit farm subsidies to $50,000 per farmer maximum, $100,000 per family maximum.  Phase out all subsidies for farmers who have a Adjusted Gross Income between $100,000 and $200,000.  Require 100% of the cost of crop insurance to be charged to the farmers.  Why do we keep paying subsidies to farmers when they have record profits?  Something is wrong.
• Cut the FEMA budget by 50%, and make States pay a 50% co-insurance payment for all federal money that flows into any State.  States would be much more efficient, and there would be much less abuse and fraud.
• Eliminate subsidies and special tax breaks for all forms of energy.  All energy producers fight to protect their subsidies by claiming that the other forms of energy get subsidies and all they want is a fair playing field.  Well, lets make the playing field very fair – no subsidies for anyone.
• Eliminate spending on arts, and humanities, public broadcasting, etc.  Contributions to these kinds of organizations should be left to charitable organizations.

I’m sure the list would be different and much larger if I took enough additional time.

According to data compiled by the Social Security Administration:

• A man reaching age 65 today can expect to live, on average, until age 83.
• A woman turning age 65 today can expect to live, on average, until age 85.

And those are just averages. About one out of every four 65-year-olds today will live past age 90, and one out of 10 will live past age 95.

Will Iowans do their fair share?

As we work to avoid the fiscal cliff and solve our federal budget deficit problem, we need to ask what we Iowans are willing to give up.  We cannot solve our deficit problem by only increasing taxes on other people or by only cutting other people’s benefits.  Here is a partial list of federal expenditures that benefit Iowans: crop insurance subsidies, ethanol subsidies, wind power subsidies, biodiesel subsidies, Medicare, Medicaid, Social Security, National Guard installations, Silos and Smokestacks national park funding, Harkin grants, student loan subsidies, mortgage interest deductions.

Will you do your part?  What cut to your current or future benefits are you willing to accept?  If we don’t solve our deficit spending problem, sooner or later we will end up with a crisis like Greece. Contact your Senators and Representative and tell him which of your benefits you are will to have cut.

Global warming and government.

It appears that our Earth is warming more quickly and is likely due, in part, to human action.  Our climate has always changed and will always continue to change.  The key question is: “What is the role of government?”  I don’t think it is to try to stop climate change.  Government has a proper role in regulating pollution of our common environment.  But our air and water have never been perfectly clean.  As our society has become more affluent, we have done much to clean up our environment.  We still have work to do.

Government’s proper role is to help us adapt to the changes.  Increasing the availability and lowering the cost of energy will improve our lives and our health more than government efforts to reduce carbon emissions to try to slow global warming.   Taxing energy not only makes it less affordable, but Increasing the flow of money to Washington also has its own negative consequences.

We will be best able to adapt to climate changes if we are economically prosperous.  People are more prosperous when energy costs are lower.  Energy costs are lower when there is a truly free market in energy.  Government policies that force us to be “energy independent” raise energy costs.  Government should not prohibit free international trade in energy.  We should stop subsidizing all forms of energy – treat them all equally.  Government should regulate incrementally to continue to reduce pollution, but not make major changes that dramatically increase the cost of energy or that increase the flow of money to Washington.

Wind energy special interest politics.

Joe Baker’s letter supporting wind energy in the Register on 8/16/2011 is a perfect example of special interest politics. He included the following benefits of wind energy: employees of wind energy companies benefit, and farmers and land owners who lease land for wind farms benefit. He wrote, “Iowa politicians know that wind energy is creating benefits here at home.” So it really doesn’t matter that wind energy cannot stand on its own economically, and that taxpayers must pay billions to benefit the special interests. It is exactly this kind of thinking that has gotten us into the huge budget deficit mess that will burden our children and grandchildren for decades to come.