“In its heyday the Canadian Broadcasting Corporation was a bastion of objectivity. However this show revealed nothing but wind apologetics. The absurdities were thick and one-sided without a single thread of verity.”

Recently the Canadian Broadcasting Corporation (CBC) pretended to take on the endless debate around the topic most people know little about – the health problems created by industrial wind turbines. The results were quite disappointing.

The Sunday, October 21st program (two segments) skated around the issues like Barbara Ann Scott.

The first segment was a cut and paste “documentary” by a novice reporter from Kincardine, Ontario about people in her “home town.” Frustratingly, and sadly, this entire set up piece merely touched at the edges of the actual concerns many of which have been reported on CBC by actual CBC reporters.…

“Economics is haunted by more fallacies than any other study known to man. This is no accident. The inherent difficulties of the subject would be great enough in any case, but they are multiplied a thousand fold by a factor that is insignificant in, say, physics, mathematics or medicine – the special pleading of selfish interests.”

– Henry Hazlitt, Economics in One Lesson (1946)

Henry Hazlitt (d. 1993) was born on this day in 1894. As has been done with other great classical liberal thinkers at MasterResource, this post celebrates Hazlitt’s birthday by applying his thinking to the current policy debate.

Specifically, Chapter 14 of Hazlitt’s book Economics in One Lesson, “Saving the X Industry,” despite being published in 1946, enlightens the current discussion about the wind production tax credit, which is set to expire at the end of this year unless Congress extends it.…

“It is well known that Texas is undergoing a major challenge in maintaining resource adequacy due to improper price signals; less well known is that a significant portion of the problem can be laid directly on the doorstep of subsidies for wind generation.”

The federal Production Tax Credit (PTC), which currently provides a $0.022/kWh subsidy to qualifying renewables, is set to expire at year-end. Just the prospect of expiration has dramatically slowed new construction of industrial wind capacity, despite a raft of other subsidies to politically correct energy. [1]

The Texas Public Policy Foundation has released a new paper looking at the effect of the production tax credit both on taxpayers and consumers. Bill Peacock and I found that PTC continuance puts the Texas electricity market at increased risk of price spikes and blackout by discouraging the construction of new reliable, on-peak generating capacity.…

“AWEA says that Congress should provide a tax credit for high-income earners to pay less than their “fair share,” while middle-class taxpayers borrow $12+ billion from China to subsidize an expensive, unreliable, environmentally destructive, alternative energy source, based on unsubstantiated claims, that will actually result in net job losses! Exactly why is that a good idea?”

Last week, head wind lobbyist, Denise Bode (AWEA), waxed eloquently about why extending the wind Production Tax Credit (PTC) is a splendid scheme that some of our legislators are supposedly supporting.

This immediately brings to mind Upton Sinclair’s insightful observation: “A man cannot be expected to understand something when his income depends on his not understanding it.”

Put another way, when a salesperson says their product is the cat’s meow, be careful that you don’t get caught in the claws.…