Monday, January 14, 2013

Wind Energy Subsidies Discussion

I am taking a wind energy class this semester as an elective in my mechanical engineering degree program. I don't particularly like the class, but it was the only one that fit my schedule because it's online. I would love to write about how this class is a waste of my time, but I'll leave the subject of broken government funded schools and their degree programs for another post.
One of my classmates posted in on of the mandatory discussion forums about wind energy subsidies. My classmate was in favor of the subsidies. Here's my take on the issue, the original post by my classmate, and my response.

My Take on the Issue:

None of these industries should receive federal money. It is morally wrong, and WAY outside the enumerated powers granted the federal government by the states. Subsidies to wind or coal or gas are not authorized by Article 1, Section 8 of the US constitution. If an industry requires the forceful transfer of money from tax payers to survive, it’s a drain on the economy, not a boon. If no one will willfully buy into it at the current size and price, that’s good information! It means there’s not enough value there.
At any rate, the amount of money spent on all the subsidies is a drop in the bucket compared to the total spending of the federal government. It’s not on the top of my list of concerns.

The Original Post by My Classmate:
Wind Energy should continue to get Tax Benefits, the government understands that someday a natural resource such as coal will run out. There will need to be alternate ways to create power in the future, and wind energy is a good response to this problem. Coal is a major industry in places like West Virginia so it will always get huge tax support, as it keeps people employed. The wind turbine industry could also use the fact that constructing wind turbines and keeping them running also creates jobs.Wind turbines also can be set up very fast in many places should we ever decide to stop using coal. For now subsidies will be smaller for wind energy until there is a greater need.
My Response:
“the government understands that someday a natural resource such as coal will run out.” 
Yes, someday in a future so far away that we cannot imagine it. Our great great grandchildren will not be running short on oil. There is not a monopoly on knowledge in Washington. In fact, it’s just the opposite. Check these out.
http://www.youtube.com/watch?v=CPrPB6Mzvoo
http://www.youtube.com/watch?v=LHD4U2q_p4c 

About jobs, we could give everyone a job just like in the Soviet Union, but they would not be productive jobs. We need products and useful services. These things already are rewarded automatically by the market. If one needs to steal from tax payers to keep making things, one probably should stop making those things.

 “Wind turbines also can be set up very fast in many places should we ever decide to stop using coal.” 
Maybe, but power lines and substations take a long time to set up, and they are costly. Wind farms often need to be set up far away from grid connections.

I will post updates if my classmate replies.