10-14-15 – Obama and the market

by John McClaughry

In an interview in Rolling Stone two weeks ago President Obama was asked “You recently singled out Charles Koch  – one of the Koch brothers – for fighting subsidies for clean energy, saying, ‘That’s not the American way.’ What did you mean by that?”

Obama replied: “Well, it wasn’t just that they were trying to eliminate solar subsidies — they are actually trying to influence state utilities to make it more expensive for homeowners to install solar panels. And my point was, that’s not how the market works.”

Obama continued “Everybody is very selective when they start talking about free-market principles and innovation and entrepreneurship. I think that this is true for a lot of folks in the traditional energy industries — they’re fine with sweetheart deals and cushy subsidies for their mature, well-established industries, but somehow when it comes to developing clean energy, they’re not simply opposing subsidies, they’re actually actively trying to keep competitors out.”

In my opinion Obama badly needs a lesson in “how the market works”. The free market works when buyers and sellers voluntarily agree on a price for an exchange of goods or services that benefits both.

Where the market doesn’t work, is where the government barges in and puts all kinds of conditions and requirements on the exchange to tip the benefits toward some parties and away from others. Obama favors that intervention, and the Koch brothers strongly do not.

{ 2 comments… read them below or add one }

jim bulmer October 17, 2015 at 1:10 pm

As our beloved former president Ronald Reagan oft said “the ten most frghtening word in the English language are ‘I’m from the government, and I’m here to help you.'”As for Obama, he couldn’t run a lemonade stand much less understand how are economy works.

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Doug Richmond, Underhill October 17, 2015 at 3:00 pm

I hate to agree with a word our Pres. “Steve Urkel” says, but, It is true that established industries have enjoyed gov’t help ever since the railroads,

Not the right thing, but true. Now look at Green Mtn Power, they lood for every gov’t dollar they can lap up, plus whatever gimick they can lay on our electric bill.

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