Regular readers in this forum will recall the frequent descriptions of the problems associated with letting government pick economic winners and losers.
That?s one reason why this Business Week article is disturbing:
The Obama Administration is eager to establish a green auto industry and is willing to spend money to make it happen. So far the U.S. Energy Dept. has agreed to lend $8.5 billion to help companies large and small retool plants to make more fuel-efficient cars and develop new technologies. ?
The U.S. government believes in funding companies outside the established industry because it’s important to nurture new ideas. “We’re trying to create competition among technologies in the marketplace,” says Matt Rogers, an Energy Dept. adviser.
Trusting the federal government to decide which industries need ?nurturing? ranks among the least wise decisions we could make. Imagine if the buggy whip industry had fielded a better lobbying team.