Failure to learn = Failure to lead. Michigan Electricity part 1

We found out that along with the Democrats, there were enough Republicans who so quickly forget recent lessons when dealing with energy issues, that Michigan is going to go backwards..  … again.

While I suspect the lobbying arms of the major providers we quite convincing, and insisted we MUST make this step towards the future, it merely illustrates the point that even those who call themselves Republicans cannot possibly understand the nature of the effects of restricting competition.  I would have expected the Democrats to be so, brilliant.  Yeah, I said it. ..well..  maybe just a case of plain intellectual laziness.

OK, again for those of you who failed to look at the results of Government MANDATES.  Lets take a look at the automakers and how they were expected (by law) to abide by congressional rules of emission standards.  Standards which have little market basis, but are the result of a CLAIM that CO2 is warming our atmosphere.  Proponents of such legislation say “If you are wrong the earth is going to go up in a great big ball of flame, and if we are wrong, then no harm done right?”  WRONG.

For anyone who pays attention.. DETROIT IS DYING or is already DEAD!  Not because people don’t want cars, but because they cannot afford them.  Cannot afford because it costs more to make cars and trucks this way, yet guess what?  It doesn’t make a difference.  Emission standards which require reduced CO2 into the atmosphere necessitates the adding of equipment which then REDUCES the output of the automobile, thereby requiring MORE Fuel to do the same work.  Do I have to spell it out further?  In the end, we get the same at a HIGHER cost.

Think I have gone off task? Nope.  My point is that Government, in its “gotta do something now” mentality has NEVER passed the test.  When government makes an attempt to make new rules, and affect what should be left as FREE markets for the public good it more often messes things up horribly.  This, are according to the Free Press:

“A package of three bills dramatically changes the way Michigan utilities are regulated, giving the state’s two largest power generators — DTE Energy and Consumers Energy — near monopolies in the markets they serve and allowing them to raise rates with no oversight until after the fact.

The utilities are guaranteed at least 90% of the state’s electric market under the changes.”

Monopoly.  Remember that little game?  It was probably one of the best demonstrations of what happens when one party holds all the properties and puts little enhancements all over em.  Problem here, however is we arent rolling dice anymore, we are already occupying the space, and free parking is nowhere to be seen.

Stay tuned for part II – WHO WILL PAY MORE?

3 comments for “Failure to learn = Failure to lead. Michigan Electricity part 1

  1. September 22, 2008 at 8:38 am

    The monopoly issue is what bothers me the most… more even than the fact that Lansing effectively just raised our taxes again on the juice those who can least afford it will need to keep warm this winter.

    The prospect for titanic upward shifts in prices post-monopoly are just scary.


  2. jgillman
    September 22, 2008 at 9:42 am

    I have expanded on this in part II

  3. September 22, 2008 at 9:53 am

    Also keep in mind that these monopolies are not due to market forces, but because of GOVERNMENT.

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