Crony capitalism

The crony capitalism of electric cars

Eric Peters discusses the crony capitalism of Elon Musk:

If Elon Musk?s various projects are so fabulous, why do they all need government ?help??

Musk will tell you all about the virtues of his Tesla cars. They are sleek and speedy. This is true. But they are also very expensive (the least expensive model, the pending Model X, will reportedly start around $35K, about the same price as a luxury sedan like the Lexus ES350).

The real problem with Tesla cars is that no one actually buys them. Well, not directly.

Their manufacture is heavily subsidized ? and their sale is heavily subsidized. Either way, the taxpayer is the one who gets the bill.

On the manufacturing end, Tesla got $1.3 billion in special ?incentives? from the state of Nevada to build its battery factory there. This includes an exemption from having to pay any property taxes for the next 20 years. Another inducement was $195 million in transferable tax credits, which Tesla could sell for cash. California provides similar incentives, including $15 million to ?create jobs? in the state.

Tesla does not make money by selling cars, either. It makes money by selling ?carbon credits? to real car companies that make functionally and economically viable vehicles that can and do sell on the merits ? but which are not ?zero emissions? vehicles, as the electric Tesla is claimed to be.

Laws in nine states require each car company selling cars in the state to sell a certain number of ?zero emissions? vehicles, else be fined. Since only electric cars qualify under the law as ?zero emissions? vehicles ? and the majority of cars made by the real car companies are not electric cars ? they end up having to ?purchase? these ?carbon credits? from Tesla, subsidizing Tesla?s operations.

The amount Tesla has ?earned? this way is in the neighborhood of $517 million.

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Why are we wasting money on corporate welfare?

? Hawkes Bay Today

Hawke’s Bay companies are leading the way in a high-value programme that has received an $11million government boost and provides opportunities for beef and dairy farmers.

Brownrigg Agriculture Group and marketers Firstlight Foods are producing marbled beef for premium markets in New Zealand and overseas.

Ministry for Primary Industries director-general Wayne McNee yesterday announced funding for the programme through the government’s Primary Growth Partnership.

The partnership has committed $11 million during seven years, for a programme worth $23.7 million.

Hasn?t anyone noticed times are tough? Or thought that National doesn?t believe in subsidies? Or that by giving $11m to some bludging farmers National is open to criticism from the left who can say ?National has $11m for its cronies but wants to make poor solo mums go back to work rather than pay them the benefit??

Crony capitalism is bad. It is worse when the party of free enterprise funds its cronies. And doubly worse when it gives opposition parties a free hit.

The best comment regarding Mediaworks so far

Peter Cresswell sums up perfectly the real situation regarding Mediaworks.

The Government appears to have agreed to a deal to help bail out media company MediaWorks,?reports the Royal NZ Herald.

_QuoteMediaWorks? latest accounts [says the?Herald] show it has essentially received a $43.3 million loan from the Crown to enable it to renew its radio broadcasting licences for the next 20 years.

Except Media Works hasn?t received a loan from the Government at all. What it?has received is?an agreement to defer payment for the use of the Government?s radio airwaves for the next twenty years?for which the Government is charging MediaWorks $43.3 million plus penalties of 11.3%.

It?s nonetheless objected by commentators that this is?capitalism. Or even?crony capitalism. Or just regular old?corruption with a?bailout of the government’s mates.

Frankly, this sounds like children talking. Because not one of the commentators on any side of the aisle has bothered to challenge the most absurd part of this story: that the government owns the airwaves in New Zealand, and not the private broadcasters?and that it charges the broadcasters handsomely for the ?privilege? it grants them for using this nationalised property.

Something that is frankly as absurd with airwaves as it is with foreshore and seabed.

Forget all the absurd?nonsense?that left-wing hate speech blogs are claiming that there is corruption, that it is mates helping out mates. If that was the case then the?frankly?usurious?penalty interest rate wouldn’t be sitting there and if it really was corruption then the money would have actually changed hands.

Everything else is just static, which is what we would be listening to if all the licences reverted to the Crown in unpaid fees. As Barnsley Bill points out that would surely make:

vicars, spinsters and 12 wellington lefties happy it would not please the rest of the country.

He left off Bomber and other assorted Auckland pinkos, but the point is well made.