I heard this on the Sean Hannity Show this afternoon and I couldn’t believe my ears, so I had to look it up myself. What I found was quite possibly the dumbest piece of legislation ever created.
It supposed to do a little of everything in order to appeal to everyone. And all this is going to do is increase the size of government at the expense of taxpayers. Going through the list of goodies for everyone includes:
- Allowing the drilling on the Outer Continental Shelf (no later than… 2010)
- Drilling in the Arctic National Wildlife Refuge
- Extending the current tax credits for alternative energy (which T. Boone was arguing for in Congress a few days ago)
- Extending the tax credits for energy efficient appliances
- The creation of a new “home energy audit” tax credit
- Creating a new “American Renewable and Alternative Trust Fund” slush fund/piggy bank to be funded out of the proceeds from the off-shore and ANWR lease sales
- The creation of the Prizes that John McCain stumped for on the campaign trail.
Basically, this is an attempt by the Republicans to graft off-shore drilling onto proposals that would pass without a problem. It’s a me-too bill. The new parts are the Trust Fund (which Congress has shown that it cannot handle, see the Highway and Social Security Trust Funds), and the prizes. The prizes have been touted by economists, such as George Mason professor Tyler Cowen. From that post:
One drawback of prizes is that they tend to be awarded in the interests of the prizegiver, and not necessarily to stimulate maximum scientific output… Still, prizes make the most sense when you cannot predict where new innovation is coming from, and thus you do not know who should get the grants. As our world becomes more complex, less hierarchical, and more decentralized, I predict a greater reliance on prizes to stimulate science.
I agree entirely with this, and is an example of why government should not give out prizes. Government knows exactly where the research will come from and that this will not necessarily stimulate scientific output, but manage it to the best of a government bureaucrat. The fact that for at least one of the prizes, the conditions for winning are codified is good, but that can be changed down the road as seen fit, especially if someone offers up a good enough campaign contribution (A couple million for $500 million is a pretty good investment).