Subsidies for Home Heating Costs? A Bad Idea.

Oner item missing from the recent Federal budget, a budget that already didn't contain much to begin with, was any mention of subsidies for home heating costs. This was a demand from the NDP.

Subsidies distort the market. Real market prices are what people use to make decisions about how to allocate scarce resources (ie: their money). Every place in the world where subsidies have been used they have failed, whether it's reducing the price of bread or encouraging people to buy houses they can't afford. They are always bad. (And, while we're at it - let's cut subsidies to corporations).

If home heating costs are rising, people will make decisions like adding more insulation, installing a more efficient heating system, lowering the thermostat, and the like.

The NDP is advocating short-term political gain and turning a blind eye to the long-term economic consequences. It doesn't make any sense. Here in BC, the NDP criticized the carbon tax during the last election. They claimed that it was faulty, didn't tax the real polluters, etc, etc...blah, blah, blah. (The carbon tax was probably the best thing that the roundly hated BC "Liberals" did in the past few years). The tax raises the cost of fuel (although not nearly enough) and encourages people to make choices like driving less or buying a smaller car. Imagine what would happen if there was a subsidy on gasoline.

The question has to be: what are these people thinking? Sorry NDP, but you're losing your way on these issues.