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When the Government Runs a Business, Part III

The lead editorial in today's WaPo entitled, "Low Voltage" is carping about the massive government subsidies steering folks toward electric cars, specifically that electric cars will be a drop in the energy bucket and a windfall to the rich to boot.

Aside from the fact that Uncle Sam put up some $150 million to create some 350 jobs (you do the math), the rush to electric cars ignores two basic facts:

First, you can't un-do the law of supply and demand. If by some miracle the country switched to electric cars, then the price of gas would plummet and the price of electricity would soar. This, of course, would send people stampeding back to gas-powered cars.

Second, where do people think the electricity comes from that will power all these electric cars? From coal-powered plants, of course. So while enviros' consciences may be clear as they quietly putter down the highway in the slow lane, praying that the battery lasts 'til the next outlet, they will likely leave a carbon footprint behind that that wold exceed even Al Gore's.

As the Obama Administration continues its social engineering - chasing the latest "it" technology - they should keep in mind that when it comes to energy, there's no free lunch - or free ride.

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This page contains a single entry from the blog posted on August 1, 2010 11:51 AM.

The previous post in this blog was Tax Increases vs. Spending Cuts.

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