The Morning Rant: Minimalist Edition

What to do when traditional conservative belief that government should not involve itself in markets, runs smack into national security concerns?

Every time the government tries to pick winners and losers, the taxpayer loses. From sports stadium subsidies to redevelopment zones to ridiculous subsidies for favored industries like "Green Energy" and EVs, the only people who come out better off are the politicians who pushed through the cash grabs and the businesses that took the free money. We taxpayers end up footing the bill, and don't get much for it.

And when there is only a single player in the market, like the production of rare earth metals, it gets even worse. Giving cash to the only player in town raises the barriers to entry into the market, and that makes it more difficult for potential competitors to push prices down and supplies up.

Trump mulls using defense powers to fund rare-Earth projects

The Trump administration is developing a plan to use Cold War-era powers to prioritize and fund rare earth projects it deems critical to national security, people familiar with the matter said.

Officials are discussing using the Defense Production Act to tap financing, loans and other means for rare earths element-related projects, including mining, processing and other downstream technologies to bolster the U.S.'s capability to build a domestic supply chain, the people said. A specific course of action or a timeline have yet to be finalized, the people said.

MP Materials Corp., the sole domestic producer of rare earths, would be a prime beneficiary. Deputy Defense Secretary Steve Feinberg is working to line up funding for the company, people familiar with that matter said. The Nevada-based mineral processor has received millions in funding from the Defense Department. [bolding mine]

The best action by far would be to decrease the regulatory burden on potential competitors, so they can enter the market without having to spend years navigating the byzantine world of environmental and safety regulations, not to mention the watermelons who emerge from their swamps to contest every single mine and oil well and power plant and any other capital project that would improve our lives and bolster our independence from malign players throughout the world.

[Crossposted at CutJibNewsletter and X/Twitter] And the Apple and Spotify feeds for CJN's podcast should be working!

posted by CBD at 11:10 AM

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