In response to a Chronicle editorial last week praising President Obama's economic plans concerning government "investment" in so-called "green technologies" and this column by Thomas Friedman, I sent the following letter:

Thomas Friedman and the Chronicle editorial board agree, at least in principle, with President Obama's plan for more government "investment" and incentives for so-called "green" technologies.  This is in spite of the fact that there is no evidence that politicians are any more knowledgeable about how best to implement environmentally sustainable solutions than entrepreneurs and manufacturers in the private sector.

In a free market, capital will flow to technologies that are productive, efficient, and that consumers willingly buy; when the government drives the process, the market is politicized in favor of special interests and regional concerns.  Lobbyists, bureaucrats, and legislators — not consumers — decide where the incentives are directed.

Rather than a centralized, government-directed, special interest-driven, political approach, a better idea is in the other direction:  reduce government interference, regulation, and taxation on investment and profit.  We've seen the effects of government intrusion in finance and banking.  Why should we trust politicians to know what's best for green technology?

Sincerely,
Dave Smith
Houston, TX