Special Interest Spending
Ivanpah in California is the world’s largest solar project. The project is owned by Google and NRG Energy, and is heavily subsidized by taxpayers. Ivanpah originally received a $1.6 billion loan from the Department of Energy (DOE) in 2011. Now the company is asking for another government subsidy to pay off its original loan.
An obituary in the Washington Post for Robert Poli provides a chance to look back at a decisive moment in Ronald Reagan’s presidency. Poli was the head of the militant Professional Air Traffic Controllers Organization (PATCO), which launched an illegal strike in 1981. The Post describes the significance of the action:
One of the policy fissures in the Republican Party is over business subsides, and the current debate about the Export-Import Bank illustrates the conflict. The Ex-Im Bank is one of many corporate welfare or crony capitalist programs that litter the federal budget. The Bank’s authorization runs out in September, and so Congress must act if it wants to extend the operations of this business subsidy machine.
Congressional websites are a useful resource to gain insights into today’s politics. So let’s take a look at the website of Rep. Sean Patrick Maloney (D-NY) to see what we can find out. Maloney was elected just in 2012, but his website reveals that he is a fast learner in the modern ways of Washington.
Political scientist Matt Grossmann discussed the results of his research on federal government growth in the Washington Post last week.
The Washington Post has great reporters, but there may be room for improvement in sharing research and reviewing past stories by colleagues.An article on Sunday discussed how candy factories “had laid off thousands of workers” in a Chicago neighborhood where a new Wal-Mart has located:
One story after another emerges about dysfunctional federal programs plagued by waste, fraud, and abuse. The core problem is that the government has grown so large that trying to make it function with efficiency and soundness has become impossible.
If we did a poll of free market economists about federal programs that are the most wasteful and ridiculous, energy subsidies would be near the top of the list. It’s not just that energy subsidies make no sense in economic theory, but also that there are so many news stories highlighting the folly that it’s hard to see why policymakers persist in wasting our money.
House and Senate negotiators are working out details of a big farm bill that may pass this year. No industry in America is as coddled as farming, and no industry is as centrally planned from Washington. The federal sugar program is perhaps the most Soviet of all. Here’s a sketch of the sugar program, which the supposedly conservative, tea party-dominated lower chamber may soon ratify:
Last week, the Republican-controlled House overwhelmingly passed a water infrastructure bill with only three members (two Republicans and one Democrat) voting against. In what must have been a moving scene for beleaguered supporters of unabated big government, tea party “radicals” joined hands with Democrats to support special interests at the expense of taxpayers.