“We will take the vision for affordable energy, common sense regulation, and safe technology to the American people; then return to Washington D.C. to deliver the message — it’s time to free the American people from costly, unnecessary regulations and bureaucracy. It’s time for Washington to untie the hands of American energy producers and manufacturers, and free these job creators to put our country back to work again.”
Freedom rings! The anti-energy eco-planners used to monopolize the not-for-profit energy dialogue. There was yours truly running the Institute for Energy Research (IER) out of my house, and Jerry Taylor of the Cato Institute carrying the free-market energy torch in Washington, D.C. And then that feisty bunch at the Competitive Enterprise Institute–Marlo Lewis and Chris Horner, et al.–came on the scene.
But now our side has caught up.…
Continue Reading“Perhaps the main failure of rationality is that of the regulators themselves.”
-Ted Gayer and W. Kip Viscusi, authors, Overriding Consumer Preferences with Energy Regulations
In a working paper for the Mercatus Center titled Overriding Consumer Preferences with Energy Regulations, economists Ted Gayer and W. Kip Viscusi examine several energy use regulations and the accompanying Benefit-Cost Analyses (BCAs). They find the regulations would not pass a BCA (provide net benefits) without two assumptions: first, that individuals make systematic and financially significant mistakes in their energy consumption choices, and second, that government policies can correct these mistakes.
The regulations cited in the paper include mileage requirements for vehicles and energy efficiency standards for household appliances and light bulbs. The BCA numbers are telling – the authors show, for example, that the vast majority (about 85 percent) of the estimated benefits of the mileage requirements proposed in 2011 accrue to the individual user, mostly in the form of avoided fuel costs.…
Continue Reading[Ed. note: Milton Friedman’s views are also explored in Part I of this series (worldview) and in Part II (energy).]
“The two greatest enemies of free enterprise in the United States … have been, on the one hand, my fellow intellectuals and, on the other hand, the business corporations of this country.”
– Milton Friedman, “Which Way for Capitalism?” Reason, May 1977, p. 21.
The above quotation is striking, not so much for the ‘fellow intellectual’ part but for ‘business corporations.’ We often think of business in the same breath as ‘free enterprise,’ right?
But on closer inspection, and with the Bush/Obama bailouts, cronyism, or crony capitalism, is in focus. And Friedman’s above Reason quotation from 35 years ago is more understandable.
I have a whole website dedicated to the subject of political capitalism.…
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