The Electric Kool-Aid Subsidy Test

The Electric Kool-Aid Subsidy Test https://images.wsj.net/im-45027/social

The Electric Kool-Aid Subsidy Test






President Trump’s recent blowup over General Motors layoffs was largely misdirected, though it may spur at least one good policy result. Killing subsidies for electric cars and trucks would be a victory for taxpayers, the federal fisc and the car industry.

Mr. Trump’s initial response to GM’s plant closure news was to threaten to punish the company by stripping its federal subsidies. White House economic adviser Larry Kudlow later acknowledged that Mr. Trump can’t legally single out GM for subsidy retribution. Instead the...

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