Subsidies Kill Innovation

Subsidies Kill Innovation. www.watchdogonwallstreet.com

Episode Transcript

Speaker 1 (00:00):
The Watchdog on Wall Street podcast explaining the news coming
out of the complex worlds of finance, economics, and politics
and the impact it we'll have on everyday Americans. Author,
investment banker, consumer advocate, analyst, and trader Chris.

Speaker 2 (00:14):
Markowski Subsidies kill innovation. Elon Musk was actually asked about
subsidies and he's like, I don't need this seventy five
dollars credit per car. Again, he didn't want to have
the whole bill bills that were put through, whether it

(00:36):
be the Chips Act, whether it be the Inflation Reduction Act.
He asks is do we need support for gas stations?
We don't, so there's no need for support for a
charging network. He's saying, get rid of all the subsidies,
including subsidies for oil and gas. Actually, Kamala Harris criticized

(01:00):
to House Speaker Mike Johnson because Mike Johnson suggested Republicans
might try to repeal the Chips and Science Act. Wish
they did, Wish they did. But it's the old saying.
Necessity is the mother of antione, right. We don't when
you subsidize something, not only you keep in the price

(01:22):
of that thing at ridiculous levels where they don't need
to be because they're getting subsidized. You carve out industries,
you carve out areas, and what is known as regulatory capture.
You can do it with regulations, and you can also
do it with subsidies, where you keep various different industries

(01:43):
in business. What keeps industries in business should is the
free market and people deciding whether or not they want
to purchase something yay or nay. For example, Ford Motor
announced that they're basically idling their F one fifty lightning

(02:04):
plant because they're not selling the cars. I mean, the
numbers are just they're so bad, it's it's ridiculous. What
they were planning on selling a year is like some
one hundred and eighty thousand they were supposed to sell
a year, one hundred and eighty thousand. They've sold twenty
two thousand this year.

Speaker 3 (02:21):
That's it.

Speaker 2 (02:23):
That's it, twenty two thousand. Do you think Ford would
have made these things if they you know, again, they
weren't promised subsidies hands and they aren't for you know,
it's part of the various different acts that they put
through gain we're going to subsidize this. Maybe if we
didn't subsidize these industries, maybe just maybe not maybe definitely

(02:44):
you would have something superior, you'd have a better product. Again,
necessity being the mother of invention, somebody would come up
with something. I think windmills. You know the stupidity behind windmills.
You subsidize that. The industry doesn't exist without subsidies, solar panels.
Maybe something better might have come along if the government

(03:06):
wasn't taking our tax dollars and handing it out. Now
when it comes to the Chips Act as well, we're.

Speaker 3 (03:10):
Being told, oh, we got to have this need to
have this need to have chips plants here in the
United States, and the United States is taking billions and
billions and billions of our dollars and handing them over
to companies that make billions and billions of dollars.

Speaker 2 (03:23):
You're not getting stock in these companies. You're not getting
a dividend for any of these things. Put yourself here,
You're the CEO of a multi billion dollar chips company,
and the guard went say, hey, here, here's more billions
of dollars. We're going to take this from taxpayers. We're
going to give it to you.

Speaker 3 (03:42):
Again.

Speaker 2 (03:43):
How does that job, How does that make any sense
whatsoever anyway. Subsidies kill innovation. Competition is a great thing.
Let companies battle it out. Let somebody come up with
the better idea. You'll build a better mouse trap. People
be a path to your door. That stuff works. Subsidies
kill that watchdog on Wall street dot com.