#freemarket

Bernie’s lesson in free market economics

Well done Bernie Sanders. Where he couldn’t pay his staffers the $15 minimum wage he bangs on about so much, he just cuts hours so the total costs won’t change. His comments from the DesMoines Register reveal the holes in his socialist thinking. Higher minimum wages don’t create prosperity if people’s hours get cut as a result.

Fail

Interesting article on Bloomberg discussing the obvious outcome of Sweden’s plan to get more EVs on the grid. As most hair-brained climate alarmist governments have a desire to outdo each other on the virtue signaling scale it often leads to poorly thought out decisions which end up costing tax payers a fortune.

Bloomberg’s Jesper Starn wrote,

Demand for electricity in Stockholm and other cities is outgrowing capacity in local grids, forcing new charging networks to compete with other projects from housing to subway lines to get hooked up.”

We’ve been here so many times before. Take Germany in bio-fuels.

The German authorities went big for bio-fuels in 2008 forcing gas stands to install E-10 pumps to cut CO2. However as many as 3 million cars at the time weren’t equipped to run on it and as a result consumers abandoned it leaving many gas stands with shortages of the petrol and gluts of E-10 which left the petrol companies liable to huge fines (around $630mn) for not hitting government targets.

Claude Termes, a member of European Parliament from the Green Party in Luxembourg said in 2008 that “legally mandated biofuels were a dead end…the sooner It disappears, the better…my preference is zero…policymakers cannot close their eyes in front of the facts. The European Parliament is increasingly skeptical of biofuels.” Even ADAC told German drivers to avoid using E10 when traveling in other parts of continental Europe.

Spain perhaps provides the strongest evidence of poorly planned subsidy execution. In 2004 the Spanish government wanted to get 1GW of solar under its feed in tariff over 4 years. Instead it got 4GW in 1 year meaning its budget exploded 16x and it had €120bn in tax liabilities over the course of the promise. In the end, the government reneged on the promises it made because it couldn’t afford it. So much for the assurance of government run programs.

Not to mention the overproduction that has often been created by subsidies. When the subsidies are withdrawn, we see fierce cost cutting which buries prices and sends many producers to the wall which was the experience of the last cycle. Take a look at India’s once largest wind power producer Suzlon. At the peak $425 a share. Now $4.35. 90% up in smoke.

To think Bill Shorten wanted 50% EVs by 2030. Clearly Australian voters disagreed.

If governments can’t sustainably raise living wages without regulation, cheaper energy prices act like a tax cut so sticking with coal, gas and nuclear make far more sense than the life experience of sharp price increases thanks to green madness.

Here is betting Sweden doubles down on green madness to remain “woke”

Mercedes – “grant us tech neutrality“

As CM has argued for over two years – let the industry have full technological freedom (point 13, page 15) to hit government vehicle emissions targets. Mercedes Benz is requesting the same as they have no plans to phase out diesel or petrol by 2039 because “no one knows which drivetrain mix will best serve our customers in 20 years”. The free market is a funny thing – it works well.

How many renewables companies were sent to the wall thanks to generous subsidies that brought overproduction to a market the government couldn’t afford to sustain?

NYT hires fab new editor who hates “dumbass f*cking white people”

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Zerohedge reports that The NY Times has hired a fab new addition in Sarah Jeong to the ranks of the board of editors. It has been unearthed that 48 months ago Jeong said some pretty incendiary things about white people. From a personal standpoint as a white person, CM is not in the least bit impacted or offended by her statements. Alas it is just words and free speech. On the contrary the tweets say more about Jeong than any dumbass f*cking white people.

Was Jeong not aware that 8 of the 12 board of editors are currently white? Not that the board’s racial identity should have any bearing on disgraceful bigotry displayed by her.

The only point at stake here is whether The NY Times will defend and maintain consistent standards it would certainly hold if a white editor raged on about people of other colour. This isn’t a rally or #boycott (please no more boycotts) to get Jeong sacked. On the contrary. In free market thinking the question is whether The NY Times exercises rational judgement and sees that from a commercial perspective defending the indefensible might not be good for growing the business or encouraging a shrinking pool of paying advertisers to rent more space?

After the election of Trump, the newspaper changed its slogan to “The truth is more important now than ever.” For someone to espouse such bitter hatred so candidly in social media forums which have a half life of infinity, her truths are for all to see. The truth in The NY Times’ slogan is also on display.

How could The NY Times possibly hope to uphold the highest levels of ethics and moral high ground by defending her? In her press blurb the paper is effusive with praise citing, “Sarah has guided readers through the digital world with verve and erudition, staying ahead of every turn on the vast beat that is the internet.“ It is also quite telling that Twitter didn’t think she broke the very standards that would see conservative voices banned for far less offensive tweets.

CM wonders what the Harvard Law School has to say about its deeply talented alumni who served as Editor of the Journal of Law and Gender? Perhaps she just missed the ethics classes because she was too busy battling to make sure the correct pronouns were used in the articles on identity politics.

Lucky for The NY Times, Jeong will remain in Portland meaning should they choose to uphold the highest levels of integrity the paper won’t be required to fork out her relocation costs. CM had higher hopes for the paper. When it hired a conservative columnist in Bret Stevens there was hope that there was an attempt to seek some balance. He spoke of the vile hatred of the left in his first column. Read it here. The outcome of Jeong will speak more about The NY Times defending the side rather than the principle.