The public good

Today two things caught my eye (and ear) that relate to what I think of as the public good. First, I read an editorial on the potential sale of the Pittsburg Steelers, a football franchise owned by the Rooney family since 1933. Secondly, I heard an ad on the radio by T Boone Pickens calling for an aggressive move towards wind and solar energy -- he has a website promoting his plan.

The Rooney family is looking to sell because of the looming whammy of the estate tax. With the value of their franchise now nearly 3/4 a billion dollars, the elderly family members who own most of the franchise could be hit with a large tax bill. Even though they own a valuable asset, it doesn't mean they have liquid assets to cover a big bill. As the article notes, the coming election may influence the impact of the tax on the current ownership--whether Congress decides to increase the estate tax or not.

I don't know much about Mr. Pickens except that he has a LOT of money from oil and has given a lot back to things like his alma mater, Oklahoma State. In this current gambit he makes an appeal to wind and solar energy, touting its cleanness along with the economic imperative that we come out of the clutches of foreign oil. Here is the thing--a major plank of his plan is to get Congress to act: "On January 20, 2009, a new President gets sworn in. If we're organized, we can convince Congress to make major changes towards cleaner, cheaper and domestic energy resources." Certainly looking for favorable conditions is the right of any company--including getting favorable laws and subsidies.

The question is whether Congress will make things better. While income redistrution is a popular tactic, it also has unintended consequences. The Steelers are being pursued by a hedge fund, private equity concern, making a family built business vulnerable. In the case of T Boone, he is coming off as a conscientious public citizen looking for help from Congress. The question is should Congress let the market work to determine the viability of wind and solar (in other words, Pickens should convince consumers more than Congress) or does it assist businessmen like Pickens who have now staked themselves to this strategy? While an unfettered market is problematic, I also doubt Congressional wisdom to determine ultimate public goods.