Spaceport Snake Oil Salesmen: On the Prowl Again
We at the Rio Grande Foundation have written a good deal about the proposed New Mexico Spaceport. Now, the new director of the Spaceport, Steve Landeene, is making the pitch for “tax hikes for billionaires” to justifiably-skeptical voters in Sierra County.
Landeene argued before the Sierra County Commission that the 1/4-cent gross receipts sales tax hike which will be on the ballot on April 22 is “the key to unleashing world history right here in Sierra County.” He went on to claim that “one study estimated the spaceport would generate $1 billion in economic development and 2,250 jobs within the first five years of operation.”
Of course, the question Landeene didn’t answer is why Sierra County residents should be asked to pay higher taxes — on top of an already-onerous 7.25% gross receipts tax rate — in order to pay for millionaires and others to go into space? If this project is really going to generate $1 billion, shouldn’t the investors be able to afford to build the Spaceport themselves?
Renewables or Nukes?
Ned Farquhar has become one of my favorite opponents recently. He can always be counted on to represent and write about the latest energy and environmental issues from the green angle. In today’s Albuquerque Journal, he argues that nuclear power is not safe, not cheap, and will inevitably fall into the hands of terrorists. While there is a nugget of truth in each assertion, his claim that we should transition from nuclear (and just about everything else) to solar and wind, is absurd and based on green fantasies that have no bearing on reality.
First, he sets up a straw man, saying “Anyone who proposes nuclear power as a silver bullet, the single answer to our convoluted energy and security issues, is ignoring huge issues.” Of course, all forms of energy have issues and no one that I know of is arguing that nuclear is the “single answer” to our energy “problems.” Of course, what Farquhar doesn’t mention is that the people who have created what problems we have are the very greens he represents.
The resurgence of nuclear is a response to the hue and cry against greenhouse gases and the supposed “crisis” of global warming. The nuclear waste issue, on the other hand, could easily be handled in a free market, but once the federal government took charge, the issue became politicized and prices went up dramatically. Another red herring cited by Farquhar is the supposed danger of uranium falling into the wrong hands. While it is true that the United States tries to strictly limit access to weapons-grade uranium, the type of uranium used in energy-generating reactors is far different.
Ultimately, all of his problems with nuclear power can be boiled down to the simple fact that nukes are not politically correct. Only wind and solar power are beloved by greenies. Of course, even the two percent number cited by Farquhar as the percentage of our energy supply that comes from these politically correct sources is overblown.
The fact is that wind and solar are inconsistent and expensive. Given the high level of subsidies now handed to these industries, they may grow slightly as a percentage of our energy supply, but even a goal of producing 5% of America’s energy usage is a bit far-fetched. The fact is that we need coal, oil, natural gas, and nuclear. No amount of wishing and hoping is going to change that.
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New Law Increases Regulation of Utility Companies
The New Mexico state legislature has recently passed House Bill 305, sponsored by Speaker Ben Lujan of Santa Fe, which will impose new mandatory regulations on utility companies throughout the state in an attempt to make them more accountable to environmental concerns.
While encouraging commercial, industrial, and residential growth in New Mexico, our state government will simultaneously force utility companies to adhere to new rules that will drive them to eventually decrease the amount of electricity provided to customers. By 2014, utility companies must be providing 5% less electricity to customers than provided in 2005, and by 2020 providing 10% less.
The law is also known as a Utility Customer Demand Management bill. If customers were actively demanding increased energy efficiency, new technologies and business models would develop in a free market that would meet their demands. Instead, government regulations have been adopted which are likely to stifle the very economic growth that our state needs.
In his blog titled A Lonely Vote for Coal and Against Conservation, Governor Richardson has mentioned that state Senator Tim Jennings of Roswell was the first legislator to vote against the proposed bill.
Although, according to Judy Pasternak of the Los Angeles Times, plans for some new coal-fired power plants have been cancelled or delayed nationwide, they “continue to advance in New Mexico, Mississippi and Indiana.” In the same article she mentions that Rick Sergel, head of North American Electric Reliability Corp., has suggested that the “tight conditions” placed on coal-fired plants may cause the nation to have an electricity shortage within 10 years.
It would seem obvious that, with a power crisis possibly imminent, utility companies should be allowed to ensure ample electricity to their customers. Unfortunately, Governor Richardson and the New Mexico Legislature are all too willing to ignore energy consumers in favor of promises of “efficiency.”
Film Industry Touts Windfall: But is it Real?
Regular readers of this know that while economists support business and economic growth, there are right ways and wrong ways to go about it. The right way is low, equitable taxes for all while the wrong way is largesse for a few which often results in higher taxes for others. Over the weekend, the New Mexico Film Office released figures stating that the industry generated $1.5 billion for the state. I’m not going to question that number. It would be impossible to state definitively that it is wrong.
On the other hand, I can also state unequivocally that bribing the film industry to come to the state was not the most efficient use of our tax dollars. That point was proven more than 150 years ago (by a Frenchman no less) Frederic Basiat. Speaking to the primary difference between a good economist and a bad one, Bastiat said, “The bad economist pursues a small present good, which will be followed by a great evil to come, while the true economist pursues a great good to come, – at the risk of a small present evil.”
I’m not calling the film industry “evil,” but I do think it is both immoral and bad policy to take money from low and middle income (not to mention wealthy) taxpayers in order to give it to wealthy filmmakers on the possibility that bringing them to the state will generate a few jobs and tax revenue. Across the board cuts in the gross receipts or income tax would have been far more economically efficient (no waste, no special office to distribute the money), not to mention being more just.
I don’t wish the New Mexico film industry any ill will, just that they’d stop taking my money.
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Making Local Government Work
Gil Heredia is running for District 7 in Alamogordo. Unlike so many politicians who feel that the only way to improve city services is to raise taxes, Heredia is advocating private sector solutions that are likely to reduce Alamogordo’s tax burden (which is heavier than other Southeast New Mexico cities) while improving service delivery at the same time. He outlined some of his ideas including privatizing municipal golf courses and the city-owned airport — most of which are applicable in cities large and small — in an article in the Alamogordo Daily-News.
Candidates for local office across New Mexico should be encouraged to borrow Heredia’s ideas on limited government. Heredia should be commended for his efforts and innovative approach to governance.
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Health Care Special Session Ahead
By now, most of you are probably aware that Governor Richardson has called a special session in an attempt to get his health care bill passed. This was no surprise given the Governor’s fixation on health care before the session began, but with little in the way of agreement on the issues, Richardson’s move seems somewhat desperate. After all, even House Speaker Ben Lujan, D-Santa Fe, said of the prospects for a special session, “It won’t be fruitful for the governor to call a special session if there is not mutual agreement.”
This is the rub. The House which Richardson normally counts on for support didn’t even go along with the Governor, but instead gutted the bill. The Senate is even further away from the Governor than that.
Crazy things can happen in a special session, but if legislators seemed skittish about reforming health care in a short, 30-day session, it seems even less likely that they’ll go along with the Governor during a special session that is sure to be unpopular with legislators of both parties, particularly since they’ve already rejected his reforms once. Lashing out at those who don’t go along with his wishes seems to be the Governor’s current mode of operation. Only time will tell whether legislators cow-tow to the Governor.
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How Socialized Health Care Would Really Work
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What’s Wrong with the Governor?
Anyone who regularly reads this blog knows that we do not engage in personal attacks. We may have policy disagreements, but we don’t generally go after people as individuals. That said, I’m not really sure Governor Richardson has been on an even keel since he return from the campaign trail. First was the statement that doctors were being “greedy” for not going along with his health care plan. While I think this statement is false on its face, it is hard to see the political wisdom of publicly attacking the very health care professionals whose mission it is to make us well. Besides, doctors are people we all deal with personally and, while we may associate their presence with both physical and financial pain, they are certainly viewed more favorably than the nameless and faceless insurance companies.
Of course, attacking doctors was only the start for Richardson. Today he essentially told the Legislature — both houses of which are dominated by his fellow Democrats — “bring it on” (subscription required) when some lawmakers suggested he’s entered his lame duck phase as governor.
As if this belligerent attitude were not enough, the Governor topped his rhetoric off by publicly disagreeing with his Attorney General (also a Democrat) regarding what should be a relatively minor bill deadline and then challenging his Lieutenant Governor over whether she is deserving of security or not.
Something is just not right. While it is to be expected that the Governor would disagree with Republicans and veto their projects from the just-signed budget, he seems to be lashing out at anyone and everyone who crosses him, possibly due to his frustrations on the campaign trail.
While we at the Rio Grande Foundation don’t agree with him very often on policy matters, it would seem that the “wounded bear” routine won’t do much for his efforts to pass his health care agenda and other items. Perhaps he’ll shake it off, but until he does, he isn’t doing himself any favors…and that’s probably a good thing for taxpayers.
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RGF and others speak out against ABQ Chamber on Health Care
As you probably know, the Rio Grande Foundation has been among the most prominent organizations opposed to more government intervention in the health care sector and supporting market-based reforms.
While most New Mexico businesses and business organizations have opposed Governor Richardson’s plans for a massive new government-run health system, the Greater Albuquerque Chamber of Commerce came out in support of the Governor’s plan. Recently, a group of businesses and other organizations including the Rio Grande Foundation sent a letter to the Chamber outlining concerns with the Chamber’s support for even more government intervention in health care and the negative impact such policies would have on small businesses. Mario Burgos blogs about the issue here.
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Galisteo Basin Drilling a Boon, not Bane, for New Mexico
The issue of whether or not to drill in the Galisteo Basin has consumed Santa Fe’s local politics over the next several months. Not surprisingly, given Santa Fe’s politics, this has gone over about as well as well as a third term for President Bush would. Governor Richardson has responded to the outcry by the area’s wealthy, well-connected residents by placing a six month moratorium on drilling in the area.
In an opinion piece that was published in the Santa Fe New Mexican over the weekend, James Taylor, a Santa Fe resident and former oil man who is advising the Foundation on oil and gas issues, wrote that if oil and gas are indeed found in the Galisteo Basin, it would be a good thing for the area and the state. After all, we all use oil and all New Mexicans benefit from the largesse it provides. Besides, oil and gas drilling are fine in Farmington and Roswell, is it only OK to drill in less wealthy areas of the state, are there some in New Mexico who are simply too wealthy to tolerate drilling in their general midst?
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