June 26, 2015

THE HIGH PRICE OF ENVIRONMENTAL REGULATIONS:

Consider Tesla. The purchaser of each Tesla Model S that costs $70,000 or more receives a $7,500 federal tax credit, plus state credits. Within California, for example, purchasers can get a tax rebate of up to $2,500 and opportunity to access special freeway lanes, an important benefit in traffic-clogged California. Few inhabitants of South Central Los Angeles, one of the poorest parts of the city, know about Teslas, its alleged environmental benefits, or what each vehicle costs them. On the other hand, those in wealthier Brentwood and Beverly Hills have a far better sense of what they gain from a Tesla purchase. It is clear that low-income citizens are subsidizing the wealthy in this case, and as more and more state resources are devoted to such policies, the overall economy becomes less vibrant, generating fewer blue collar jobs and other opportunities for those who are struggling the most in the society.

AKA, “The Drawbridge Effect,” as James Delingpole dubbed it: “You’ve made your money. Now the very last thing you want is for all those trashy middle class people below you to have a fair shot at getting as rich as you are. That’s why you want to make energy more expensive by opposing Keystone XL; why you’re all for environmental land sequestration (because you already own your exclusive country property); and Agenda 21 – which will make all Americans poorer, but you not so much, because you’ve enough cash to cushion you from the higher taxes and regulation with which the greenies want to hamstring the economy.”

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