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Paper Companies' Windfall of Unintended Consequences

Posted by kdawson on from the pulp-nonfiction dept.

Jamie found a post on ScienceBlogs that serves as a stark example of the law of unintended consequences, as well as the ability of private industry to game a system of laws to their advantage. It seems that large paper companies stand to reap as much as $8 billion this year by doing the opposite of what an alternative-fuel bill intended. Here is the article from The Nation with more details and a mild reaction from a Congressional staffer. "[T]he United States government stands to pay out as much as $8 billion this year to the ten largest paper companies.... even though the money comes from a transportation bill whose manifest intent was to reduce dependence on fossil fuel, paper mills are adding diesel fuel to a process that requires none in order to qualify for the tax credit. In other words, we are paying the industry — handsomely — to use more fossil fuel. 'Which is,' as a Goldman Sachs report archly noted, the 'opposite of what lawmakers likely had in mind when the tax credit was established.'"

10 of 284 comments (clear)

  1. lawmakers by Anonymous Coward · · Score: 5, Funny

    Incompetent lawmakers are incompetent.

    1. Re:lawmakers by Anonymous Coward · · Score: 1, Funny

      When was the last time a US court looked at the spirit of the law, and not the letter of the law?

    2. Re:lawmakers by RichardJenkins · · Score: 3, Funny

      Corporations and individuals are not free to pursue their own interests in whatever method they want - we create laws specifically to prevent that.

      Are you saying you want a type of anarchy where anyone can do whatever they want, and hope that acting in a way detrimental to society correlates with bankruptcy?

      I agree with what you say about having to make sure the "balance is positive" - but I think copious legislation should be applied to ensure that you can only have achieve this by benefiting society.

    3. Re:lawmakers by yndrd1984 · · Score: 2, Funny

      I wish they had "-1 Libertarian" mod here...

      And I wish they had "+1 Libertarian" mod here....

      Well, as a libertarian would say, "to each his own".

    4. Re:lawmakers by Sponge+Bath · · Score: 2, Funny

      ...to each his own

      From each according to his ability, to each according to his need.

      Apparently the paper companies need 8 billion dollars and the government has the ability to pay it. :-P

  2. The Michael Scott Paper Company by Mr.+Maestro · · Score: 2, Funny

    is all over this!

  3. Re:Laws are used as written, not intended by amrik98 · · Score: 4, Funny

    This is another example where the intention of the law doesn't mean anything, what is actually written and what that can be stretched to mean does.

    This is rather troublesome. If these situations continue our representatives may be forced to actually read the legislation they're passing.

    Instead of thinking of the children?

  4. So the next hole in teh road you hit.... by 3seas · · Score: 2, Funny

    ... call DOT and tell them to fill it with paper.....

  5. Wait, this seems familiar... by dcmoebius · · Score: 3, Funny

    Does anyone else feel like this is an episode of "The Office"?

  6. Re:Well, folks... by Scrameustache · · Score: 3, Funny

    Capitalism seemed to work pretty well until we gave up on it early last century

    Children worked 18 hours a day in coal mines and the liked it!

    --

    You can't take the sky from me...