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The neat thing about prizes is that we spend no money unless someone wins. Now surely it would be worth far more than $300 million to have any capitalist have the battery technology McCain describes. Indeed it would be worth far more, and the only real criticism of the McCain prize might be that it wasn't large enough. On the other hand, how does it harm us to have the $300 million offered? This is a very good move on McCain's part, and makes me a lot happier to support him than I was. It makes him something more than the lesser evil...
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1 comment:
Actually, it amounts to nothing more than silly pandering to the environmental groups. Such an incentive already exists in the marketplace, and has for many years.
Just imagine, if someone developed such battery technology, what would be the potential market payoff? Ultimately, it would probably be in the billions of dollars, as car companies would scramble to incorporate these batteries into either hybrids, or 100% electric vehicles.
The reason such technology doesn't already exist has nothing to do with the fact that the government hasn't subsidized such research by using our tax dollars to offer up silly prize gimmicks. Rather, it's because the technology doesn't yet exist. As soon as it becomes a reality, the market will be all over it, and there are many existing technology firms that are already spending significant R&D resources on it as we speak.
Anything that makes economic sense will be pursued and developed by the free market. If it requires a government subsidy to exist (e.g., ethanol), it doesn't make economic sense, as the market place would have already produced it at a profit.
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