The way our capitalist economy operates necessarily includes subsidies in order for companies to effectively survive in global competition. America is the preeminent world power, due in large part to our innovation while geo-strategically positioned in a region that is resource-poor for the oil sector. In order to utilize oil in other regions of the world, companies must receive subsidies from the federal government in order to properly compete. The price tag of 4 billion dollars not only supports the industry, but also keeps America in a position to maintain hegemony.
Ecologically speaking, this may not turn out to be the best thing for the planet. Of course the energy industry does its part through corporate social responsibility to give back to communities and in some cases invest in our planet's energy future. Subsidies all help do this. As the article clearly articulates, subsidies have remained a constant in the political sphere for decades. In my opinion, subsidies need to reform to match the times. While cutting all subsidies might seem extreme, perhaps if the government restructured them that allowed for these companies to invest and develop so called 'Green' technology, that might provide further incentive.
At the same time, the Obama administration can shift some of those funds to other social programs that are currently in deficit.
No comments:
Post a Comment