Many free-market economists have asked themselves is it possible to grow our own fuel in the United States of America without government subsidies and still compete with the price of gasoline? Is it possible to break the habit and addiction that America has to Middle Eastern foreign oil by growing our own fuel? Some say it is but it will take time. The question is how long will it take? The longer the subsidies and tax incentives stay on such biofuels as; Bio Diesel and Ethanol the harder it will be for those industries to make a profit. The free market must prevail no matter what and growing our own fuel in theory is a great idea however we must consider at what cost. Incentives and subsidies make industry weak, noncompetitive and inefficient, which of course is unacceptable. Can we have profitability in the future without government incentives making them weak? And Ronald Reagan speech he stated; If It Moves Tax It, If It Stops Subsidize It! We need to make sure that we are not making a mistake but rather hedging our back against OPEC and future higher oil prices as China and India demand a more fuel and more of the world's resources for oil. We must be honest with ourselves and make a plan that by 2012 all the subsidies and tax incentives disappear for biofuels. If we can do that we will have won the game. We should not allow ourselves to get into a never-ending trap, which will cost our country money and taxpayers dollars. We have other obligations in our government to protect the American people and that must come first. Please consider this in 2006. |
