Among the wind cult, it’s apparently the ‘aesthetics’ of these things that titillate the senses and get their juices flowing: just knowing that they’re out there somewhere (in someone else’s backyard, not their own) gently caressing the breezes, is more than enough for starry-eyed wind worshippers.
Ignore the hundreds of $billions squandered on subsidies for a power generation system, abandoned centuries ago, for pretty obvious reasons; ignore the chaotic, occasional delivery of power which, but for those subsidies, has no commercial value because it can’t be delivered as and when power consumers want it; ignore rocketing retail power prices in places like Denmark, Germany and South Australia (all said to run on sunshine and/or breezes and all paying the highest power prices in the world); and ignore the millions of birds and bats, sliced, diced and belted to Kingdom Come each and…
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Despite a recent order from the Supreme Court lifting lower court injunctions on the travel ban, the United States Court of Appeals for the Ninth Circuit ruled that Travel Ban 3.0 is little more than a bad sequel with the same unconstitutional theme. I have previously written that I view the controlling precedent as favoring President Trump on the travel ban. This opinion did little to change my mind on that legal point.
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Externalities arise out of incomplete property rights. The only externalities that arise from an airport expansion proposed in Wellington is from noise.
There are no externalities from building sports stadiums or hosting mega sports events because all of the effects are transacted through the market. No inputs are used without the permission of the owner, nothing is produced that is not charged for by the venue or event organisers.
As for the use of benefit cost analysis to strengthen the claim for a government subsidy, you use cost benefit analysis when you are too stupid to charge for the good or service such as a road or you are evaluating regulations because they deal with nonmarket effects, effects that are not mediated through the market process.
Sports stadiums and mega sports events should pass the usual market test. Is it profitable for the entrepreneurs backing the project when they are using their own money.
Mario Rizzo has an excellent post on Austrian Business Cycle Theory (ABCT). I think Mario do a good job explaining what ABCT is and what it is not.
At the centre of Mario’s discussion is that monetary policy is not neutral, but that the important think is not inflation, but rather “relative inflation”. Here is Mario:
The Austrian theory rests, not on a catalyzing effect of core inflation or headline inflation, but on changes inrelative prices that cause resources to be allocated in ultimately unsustainable ways. The Great Depression was not preceded by much inflation because productivity improvements allowed for increases in bank credit without increasing (by much) the price level. Hayek said repeatedly that the price level aggregate can hide the distortions basic to the cycle.
This point is especially important in the early stages of recovery when there is so much unused capacity and previous investment pessimism…
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