The Shining Light. Unintended Consequences.

Politicians often draft policies with bold goals and grandiose promises. They constantly purport messages highlighting the universal good a particular measure will bring while exhaustively undermining or ignoring many of the negative consequences. Innovation is paramount to economic growth. With innovation comes new ideas and products in favor of yesterday's mainstream item. The next big thing is always around the corner. Economists refer to a theory called 'Creative Destruction' when analyzing innovation and its bearing on long-term economic growth. Essentially, the theory states that the short-term and long-term positive effects of a new product replacing an old product far outweigh the negative short-term ramifications. Principally, these consequences tend to reflect the likes of job figures and other business related interests. But the ramifications can also extend to environmental issues and health-related concerns, to name a few. The idea of new replacing old is immediately visible in the world of consumer electronics. Over the past few decades, Americans have seen an explosion of new products. The dominance of VHS wiped out by the release of the DVD format. And more recently with BluRay poised to oust DVD. We have seen traditional tube Television sets overrun by modern Plasma and LCD screens. And certainly generations of music lovers witnessed the transition of music storage from vinyl to tape, then to compact disc, and now on to the digital age. These transitions are good. They are good for economic growth when they are organic and natural. When creative processes and consumer freedom foster new products, everyone usually wins on some level. However, when the Government imposes change upon industries and buyers, it does far more bad than good. So what does this all have to do with the light bulb? Beginning in 2012 the Federal Government plans to completely phase out Incandescent Bulbs in favor of Compact Fluorescent Light Bulbs or CFL's. A somewhat distorted view of basic economic principle coupled with concerns over global warming and public sustainability are being used to drive this new regulation. On the surface, it seems pretty simple. Spend a little more upfront in order to enjoy long-term energy savings. The EPA claims this will create jobs, save consumer's money, provide security, and lessen green house emissions. But what are the unintended consequences? Politicians have overlooked the high levels of mercury vapor found in CFL bulbs and the associated hazard of mercury poisoning. CFL bulbs do not work well in the cold and do not operate well with household dimmers. As for jobs, General Electric has already shut down several major Incandescent factories with hundreds of jobs lost. The new jobs will likely arise overseas in China, the largest manufacturer of CFL bulbs. It seems Washington is poised to ban a perfectly good product on the notion that they know better than the American consumer. If consumers really wanted CFL bulbs over cheaper Incandescent bulbs they would purchase them irregardless of Federal bans. We are on the verge of unnecessarily killing American jobs through market manipulation and special interest agendas. We must preserve consumer freedom and support natural innovation.