[Grovenet] Remove subsidies from energy sources

[David Morelli]

Mr Riazul Islam wants to remove subsidies from alternative energy  
sources because subsidies skew the market.

http://www.fgnewstimes.com/opinion/story.php?story_id=116482619508208700

Mr Islam is correct that subsidies skew the market.  I can agree that  
we would be better served in our economic dealings if we were to  
remove the subsidies.  I offer some additional points.

Economic principles apply well to economic issues.  They are  
inappropriate when applied to non-economic issues.  When you have to  
work to apply a value to something, like a human life, you are  
outside of the economic realm and should use other, more appropriate  
principles.

Petroleum receives two subisies that dwarf anything given to  
alternative fuels, both of these should end.  First, the war in Iraq  
is a war for oil.  The cost of that war should be reflected in the  
price of petroleum products.  Second,  we have an intentional  
government policy to "keep the dollar strong".  Why?  Because keeping  
the exchange rate artifically high rate keeps foreign oil prices  
artifically low.  Unfortunately, it also makes other foreign goods  
cheap at the expense of American industry and wage earners.  Our  
balance of trade indicates that the dollar should be allowed decline  
so that we achieve balanced trade.  So long as we trade American jobs  
for foreign oil, we are subsidizing petroleum.

David