
On one side of the Atlantic: the Inflation Reduction Act (IRA), on the other side: the Green New Deal. The gloves are off, but can the subsidy money be as enormous as indicated without massively stoking inflation? Besides, what possible climate benefit does anyone think they might see?
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Journalists are calling it a subsidy war, says OilPrice.com.
Those involved in it are keen to preserve an image of cooperation and agreement. Whatever you call it, it’s hard to deny the obvious: the United States and Europe are locked in a race—a subsidy race for the energy transition.
When Congress passed the Inflation Reduction Act last summer, many companies had reason to celebrate: they were going to get generous financial support to build or expand their businesses as long as they fell into any “sustainable” category.
The mood was different in Europe. There, business leaders had reason to start worrying about one more thing: the increased competitiveness of U.S. goods thanks to the IRA and the consequent reduced competitiveness of their own goods.


















EU countries can’t agree their best rate of economic decline due to expensive and damaging so-called climate policies that won’t have any measurable effect of the type they seek. Have they considered the possibility that there is no such rate?
No surprise that cranking up the cost of essentials is a greater burden for people on low incomes than for others. But nothing can be allowed to stand in the way of overblown climate obsessions, it seems. Carbon dioxide must be demonised no matter how tenuous the evidence against its tiny 0.04% share of the atmosphere, much of which pre-dates the modern era anyway.
Pointless EU climate ideology is going in the opposite direction to its economic success. Protectionist barriers tend to annoy the victims, with unknown but likely repercussions. Any idea that harmless carbon dioxide is ‘dirty’ is a bad joke, but makes endless work for meddling bureaucrats.
‘All pain for no gain’ springs to mind. Will voters accept this pointless self-harm to their economic welfare indefinitely, or turn against it?