[Ed. note: Milton Friedman’s views are also explored in Part I of this series (worldview) and in Part III (political capitalism).]

“Economists may not know much. But we know one thing very well: how to produce surpluses and shortages. Do you want a surplus? Have the government legislate a minimum price that is above the price that would otherwise prevail…. Do you want a shortage? Have the government legislate a maximum price that is below the price that would otherwise prevail.”

– Milton and Rose Friedman, Free to Choose (New York: Harcourt Brace Jovanovich, 1979), pp. 219.

“It is a mark of how far we have gone on the road to serfdom that government allocation and rationing of oil is the automatic response to the oil crisis.”

– Milton Friedman, “Why Some Prices Should Rise,” Newsweek, November 19, 1973.

“The American Bird Conservancy (ABC) and other experts estimate that well over 500,000 birds and countless bats are being killed annually by turbines. The subsidized slaughter “could easily be over 500” golden eagles a year in western states, Save the Eagles International biologist Jim Wiegand told me. Bald eagles are also being butchered. The body count for the two species could soon reach 1,000 a year.”

Extending the industrial wind production tax credit (PTC), in addition to its other problems, threatens eagles and other majestic birds in consequential ways. Do the Washington, DC environmentalists know this? Do they care?

Back in 1995, Paul Gipe’s book, Wind Power Comes of Age (New York: John Wiley & Sons) forthrightly dealt with the fierce, internal debate within the Sierra Club and other groups about the ‘avian mortality problem.”…

In 2008, Candidate Obama campaigned against Republican-era high gasoline prices. Now that pump prices are high with a presidential election looming, President Obama disclaims responsibility. “We cannot drill our way to lower gas prices,” he says.

Crude oil is a fungible commodity, the argument goes. So why should we Drill, Baby, Drill when any domestic supply we might add is a relative drop in the bucket? Nice argument, except that it could be used against having any new production. (And U.S. CO2 emissions at the margin are a drop in the bucket, right Mr. President? ) And as the economic revolution of the 1870s taught, economic value and thus prices are set at the margin.

Marginal Economics

The United States is the world’s #3 oil producer. Domestic policy decisions in the U.S.…

“Let’s focus on reducing the debt, increasing expenditure for research, and getting rid of the subsidies. Twenty years is long enough for a wind production tax credit for what our distinguished Nobel prize-winning Secretary of Energy says is a ‘mature technology’.”

In a speech last Wednesday on the floor of the United States Senate, Senator Lamar Alexander (R- Tenn.) called on Congress to reject any efforts to add a four-year extension of the Production Tax Credit.

His learned statement brings out a number of facts that contribute to the debate–and explains why ‘subsidy fatigue’ has set in with windpower. Alexander also explains why the future belongs to the energy efficient, not dilute forms of energy that carry a large environmental footprint.

The full transcript of his remarks, published in The Chattanoogan, follows.…