Just read a bit about the massive subsidies the fossil fuels industry receives in the U.S and I was confused. Aren’t these companies one of the most profitable ones in the U.S?
In: Economics
There is a nationalist aspect to oil production. It’s seen as bad by voters if the results of a politician’s actions result in increased use of foreign oil.
It’s seen as bad by voters if the cost of fuel increases.
Politicians are more incentivized to be reelected than they are to declare their principles and take actions towards those principles (such as decreasing oil dependency overall and/or believing in a free market without corporate welfare).
Voters don’t like corporate welfare, but they dislike the consequences of not subsidizing oil even more.
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