free market

Fri, 2013-08-30 11:53David Ravensbergen
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At the Limits of the Market Part 2: Why Capitalism Hasn't Solved Climate Change

climate change, capitalism, environmental issues in Canada

Read At the Limits of the Market: Why Capitalism Won't Solve Climate Change, Part 1.

One answer to the question of why free market capitalism has failed to generate technological solutions to the crisis of climate change is that green innovation simply isn’t as profitable as speculation. In an era when financial markets generate record profits and investment banks are too big to fail, the long work of investment, research and construction of new energy infrastructure simply isn’t attractive to profit-seeking corporations.

Faced with the clear failure of the free market to respond to the approaching dangers of climate change, politicians have reacted by attempting to coax corporations into serving the needs of people as well as the bottom line. This is typically referred to as finding “market-based solutions.” It sounds good at first: we’ll harness the best minds in the private sector to develop new technology, create new jobs and solve climate change in the process.

But all too often the phrase “market-based solutions” works as a kind of coded communication. In effect, it signals to corporations that the government will not take any measures that could interfere with their business model. Rather than impose meaningful restrictions on emissions or the extraction of fossil fuels, market-based solutions focus on changing behavior by creating the right set of incentives.  

Fri, 2012-07-06 17:11Farron Cousins
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FreedomWorks Fails Basic Math And Economics To Smear Renewable Energy Investments

The corporate funded, Libertarian/Conservative “think tank” FreedomWorks is doing their best to convince Americans that taxpayer-funded energy subsidies and loans are a waste of our resources. Of course, that doesn’t apply to the massive giveaways to the dirty energy industry, only to the federal loan programs established to invest in cleaner, renewable energy companies.

Touting the superiority of the so-called “free market” over the actions of the government, a recent report titled “Free Markets, or Government Knows Best?” by Wesley Coopersmith broke down the amount of money that the federal government has allocated to renewable energy projects, per the American Recovery and Reinvestment Act of 2009, and compared the amount of money given to the number of permanent jobs created by each company. Here’s what Coopersmith had to say:
  

Under the 1705 loan program, taking up half of the funding form the Loan Guarantee Program, 2,378 permanent jobs were claimed to be created. If you do the math right, this works out to costing the taxpayer $6.7 million per job created. I don’t know about you, but if it takes the government $6.7 million to create one permanent job, something is wrong.

The combined amount of money given to alternative energy companies, through the 1705 and 1703 Loan Programs, totals around $19.2 billion. According to the US DOE, 3,498 jobs have been or will be created because of these loans. This comes out to almost $5.5 million in cost per one permanent job created.

Unfortunately, these projected permanent jobs created are an overestimation, if you take away the jobs lost due to six of these companies going bankrupt. Solar Millennium Inc., LSP Energy LP, Ener1 Inc., Beacon Power Corp, Abound Solar, and Solyndra LLC combined have received over $3.5 billion from the Logan Program yet have produced zero jobs and hurt the fragile U.S. economy.
 

Coopersmith also provided a helpful chart that shows exactly how much money each (of a select few) company received and how many permanent jobs were created. For credibility purposes, Coopersmith even linked back to the U.S. government’s official website and used their own numbers on permanent jobs per company, as well as how much each received.

The problem with Coopersmith’s analysis is that he omitted several important numbers in his calculations. For example, he only lists the permanent jobs created by each company, failing to add in the number of construction jobs that would be created by each project. He also used the total amount of money that had been allocated to each company, not the amount that had actually been paid.
  

Wed, 2012-03-07 20:03Farron Cousins
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Republican Claims About Gas Prices Demonstrate Lack Of Knowledge About “Free Market”

As the national average for gas prices pushes closer and closer towards $4 a gallon, Republicans have wasted no time in attempting to convince the public that President Obama and his “hostility” towards the oil industry is the reason we’re feeling the squeeze at the pump.

Fox News recently leant space on their website to let Republican National Committee Chairman Reince Priebus feed debunked talking points to Fox readers in an error-filled op-ed:

Wed, 2011-09-28 16:02Laurel Whitney
Laurel Whitney's picture

New Danish Government Axes Bjorn Lomborg's $1.6 Million In Funding

Finally, a vestigial government-funded program actually worth cutting gets taken out as Denmark's new regime change is opting to excise Bjorn Lomborg's $1.6 million in funding for his Copenhagen Consensus Center.

“It’s been very strange that particular researchers have received special treatment due to ideology. We’re going to run fiscal policy differently,” said Ida Auken from the Socialist People's Party.

Lomborg is notorious for touting economic woes pertaining to the costs of mitigating climate change. He has often suggested that it is either too expensive to tax carbon and cap emissions to solve climate change, except when he was advocating his 1900 robotic ship army idea to spray sea water and ameliorate warming through geoengineering.

Either way, the almighty free market that laissez-faire economists pray to has spoken (Lomborg's movie 'Cool It' raked in all of $62,713 in box office sales), and it's out with excessive climate-denier-mobiles. It's like the irony is killing…off his program. Literally.

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