Oil and Water: Obama supports another already subsidized industry

But what we champions of the market often fail to realize is the extent to which the current oil based economy is subsidized by governments. Oil, when it was plentiful and easy to get at built its own market fairly quickly 100 years ago. In the decades since however oil has been subsidized and competitors regulated away by the government. So it is unfair to characterize the current debate over fuel sources as one where oil is the good, free market choice and “alternative energy” as simply an example of another government sponsored boondoggle. Over the years the oil industry has been one of the great beneficiaries of government largess. It is estimated that worldwide the oil industry will enjoy nearly $500,000,000,000 in government subsidies from various countries in 2010 alone. How can alternative energy compete in a marketplace where the main competitor is subsidized to this extent? President Obama has now opened up much of America’s coastline to oil drilling much to the surprise of many on the left. Many of Obama’s traditional opponents have applauded the move. But really this is just an example of the bizarre things that happen in markets that are warped by government intervention. Conservatives and libertarians should be aware of this. The opening up of our coastlines to oil exploration is not a “freeing” of an otherwise freely operating market, it is just an example of the ongoing manipulation of a market that has been anything but “free” for many, many decades...more