Capitalism is designed to concentrate power in the hands of a very few, who then use this power to benefit themselves and harm others. An example is the coming trade war with China over photovoltaic power.
From the article:
Presiding over a dispute that has fractured the renewable energy industry, federal trade officials could decide within days whether to levy steep tariffs on a flood of low-cost Chinese solar panels.
Why does the government have to get involved, and why are tariffs the solution? Governments pick winners and losers, and in a system that is ordered along the lines of capitalism, the losers are the consumers.
The outcome could have far-reaching consequences for installers and consumers of solar energy systems – who have benefited from plummeting prices – and U.S. solar manufacturers, who have seen their profits pummeled.
Why do we tolerate this? Here is the outrage in question:
The filing claims Chinese rivals – propped up by tens of billions in government subsidies – are “dumping” solar panels in U.S. at below fair value to seize market share and drive out competitors. The Chinese government aid ranges from cash grants to preferential loans to deep discounts on land, water, power and raw materials, the complaint alleges.
Can you say Solyndra? There are 1000 more Solyndras in USA, at various sizes. How come it is a crime for the Chinese to do it, but OK for USA to do it? (Note the objection is Solyndra might be a case of political influence, not that USA gives a half billion in subsidies to USA companies...)
And so what if the Chinese were dumping solar panels: the tactic is stop making what they are giving away, and make what else is still needed. And get those inexpensive, subsidized panels on USA roofs, installed by an army of small business contractors, who will be busy for years with service agreements. This is a works projects that costs the taxpayers not a dime, compliments of our friends in China. It is sad that the only hope for American workers is the Communist Party of the Peoples Republic of China.
The data to support the complaint is compelling. China’s share of the U.S. solar panel market jumped from 8 percent in 2008 to 45 percent last year, and has risen further since. Chinese sales of solar cells and panels rose 135 percent, to $2.8 billion last year. And prices for solar panels in the United States have tumbled as much as 50 percent over the same span, to about $1 a watt.
How come this is ok for computers, but not ok for solar panels?
As a result, domestic solar panel manufacturers have been forced to idle production and slash at least 1,700 jobs – pains that will be more deeply felt unless the federal government levels the playing field, the complaint says.
The only companies that will idle workers are the capitalist companies that do not know how to make money without government protection. This is a distinct advantage democrats have over republicans: there are no republican businesses that do not depend heavily on government subsidies. Although there are democratic biz that take subsidies, most free market businesses tend to be liberals. Such businesses are already listening to the customers, so they know what to do given Chinese dumping. Republicans go straight to emotional blackmail... "help us, or we'll hurt these workers!" With republicans, it is always "hurt the workers."
Under federal trade law, the Commerce Department investigates complaints about dumping and unfair subsidies for imported products. The International Trade Commission, an independent, quasi-judicial federal agency, studies the effects of those goods on U.S. industries.
It is not independent. It is the messenger, when the decision is made as to who wins and who loses. A free market needs no such intervention. With a free market we get more better cheaper faster. But such a beneficial structure might lead people to wonder why they need a state for government. Why, people might start thinking about freedom.
From the article:
Presiding over a dispute that has fractured the renewable energy industry, federal trade officials could decide within days whether to levy steep tariffs on a flood of low-cost Chinese solar panels.
Why does the government have to get involved, and why are tariffs the solution? Governments pick winners and losers, and in a system that is ordered along the lines of capitalism, the losers are the consumers.
The outcome could have far-reaching consequences for installers and consumers of solar energy systems – who have benefited from plummeting prices – and U.S. solar manufacturers, who have seen their profits pummeled.
Why do we tolerate this? Here is the outrage in question:
The filing claims Chinese rivals – propped up by tens of billions in government subsidies – are “dumping” solar panels in U.S. at below fair value to seize market share and drive out competitors. The Chinese government aid ranges from cash grants to preferential loans to deep discounts on land, water, power and raw materials, the complaint alleges.
Can you say Solyndra? There are 1000 more Solyndras in USA, at various sizes. How come it is a crime for the Chinese to do it, but OK for USA to do it? (Note the objection is Solyndra might be a case of political influence, not that USA gives a half billion in subsidies to USA companies...)
And so what if the Chinese were dumping solar panels: the tactic is stop making what they are giving away, and make what else is still needed. And get those inexpensive, subsidized panels on USA roofs, installed by an army of small business contractors, who will be busy for years with service agreements. This is a works projects that costs the taxpayers not a dime, compliments of our friends in China. It is sad that the only hope for American workers is the Communist Party of the Peoples Republic of China.
The data to support the complaint is compelling. China’s share of the U.S. solar panel market jumped from 8 percent in 2008 to 45 percent last year, and has risen further since. Chinese sales of solar cells and panels rose 135 percent, to $2.8 billion last year. And prices for solar panels in the United States have tumbled as much as 50 percent over the same span, to about $1 a watt.
How come this is ok for computers, but not ok for solar panels?
As a result, domestic solar panel manufacturers have been forced to idle production and slash at least 1,700 jobs – pains that will be more deeply felt unless the federal government levels the playing field, the complaint says.
The only companies that will idle workers are the capitalist companies that do not know how to make money without government protection. This is a distinct advantage democrats have over republicans: there are no republican businesses that do not depend heavily on government subsidies. Although there are democratic biz that take subsidies, most free market businesses tend to be liberals. Such businesses are already listening to the customers, so they know what to do given Chinese dumping. Republicans go straight to emotional blackmail... "help us, or we'll hurt these workers!" With republicans, it is always "hurt the workers."
Under federal trade law, the Commerce Department investigates complaints about dumping and unfair subsidies for imported products. The International Trade Commission, an independent, quasi-judicial federal agency, studies the effects of those goods on U.S. industries.
It is not independent. It is the messenger, when the decision is made as to who wins and who loses. A free market needs no such intervention. With a free market we get more better cheaper faster. But such a beneficial structure might lead people to wonder why they need a state for government. Why, people might start thinking about freedom.
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