The Department of Energy (DOE) announced it is spending $45 million of taxpayer money for 38 different projects for advanced transportation technologies. But private companies should be making these investments on their own to provide the best products available for consumers.
The 38 projects funded by DOE are going to universities, laboratories, and private companiesfor development of more efficient batteries for electric vehicles, advanced fuels and lubricants, efficient heating ventilations and air conditioning systems, and the next generation of lightweight materials to make cars lighter while not compromising safety.
The list of projects come across as innovative, cutting-edge, and perhaps transformative of the transportation industry. But automakers and other manufacturers are not paying for this research themselves; they’re relying on taxpayer money.
If companies believe it is in their best interest to invest in research and development, they should make those investments with their own money. The companies that identify opportunities will capture the economic benefits, and those that don’t will remain stagnant or suffer. When companies have to make those choices with their own money, risk and reward are properly aligned.
In some instances, the DOE spending is blatant corporate welfare. DOE awarded $1.5 million to Caterpillar, $1.75 million to General Electric, $3 million to 3M Company, and $350,000 to Ford Motor Company. If these companies believe it is valuable to work with the DOE laboratories and universities, they should do so, but there is no need for taxpayers to subsidize them.
No comments:
Post a Comment