Biden Is Giving Away Billions of Your Money to Help This Market

The first rule of business is that if the government is subsidizing what you do, it probably makes no sense.

It is true that the government has subsidized business ventures since George Washington was president. The State of New York paid for the Erie Canal. The U.S. government gave rights of way to the railroads so they could build lines from coast-to-coast.

The government also gave land grants to states to build the state university system, which today has some of the most advanced research facilities in the world. Wars have produced major technological innovations that were later released to the private sector for commercial and civilian innovation.

Yet, these examples all have one of several characteristics in common. Either the cost to the government was almost zero (for example, the government had more land that it knew what to do with and could give it away for free to more productive uses), or the government incurred a cost but made it back with profits in short order. The Erie Canal paid for itself in less than nine years.

When a government incurs research & development costs in a war, it’s an existential matter; post-war benefits are gravy and can be recouped in licensing fees.

In contrast, the government giveaways described in this article don’t meet any of those beneficial criteria. We’re talking about the government subsidies for electric vehicles (EVs). They are not free, not productive, and they will never be paid back.

A new study shows that total taxpayer subsidies for each EV produced in the U.S. are $50,000. That comes to $22 billion per year, not including the $7,500 per vehicle tax credit for certain EVs.

Not only do EVs make no sense financially, but they are also failures mechanically. The advertised mileage of 300 miles per charge works out to about 130 miles once real-world road conditions are taken into account. The heating system on an internal combustion engine simply distributes engine heat into the car, which costs almost nothing to do. Heat in an EV comes from the battery, which runs the battery down even faster.

The 20-minute “rapid charge” stations turn out to take several hours because you end up being the fifth or sixth car in line. Batteries have to be replaced after about eight years at a cost of $20,000 each, which makes the resale value of the EV zero, because who wants to buy a used car and then write a $20,000 check for a new battery?

The entire effort is a scam driven by elites who know less about real climate science than you and I. I just bought a new car – a 3.0 litre, V-6, 24-valve, turbo-charged, quad exhaust beauty. I plan to keep it for ten or fifteen years while the EVs pile-up on the dealer lots.

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