This Bubble Could Go Nuclear

After his State of the Union address, we expected environmental groups to protest President Obama's pledge to advance nuclear power. We're pleased that the outrage spans the political spectrum, with many stops in between. Add us to the complainers.

The new federal budget proposes to triple loan guarantees for new nuclear power plants, from $18.5 billion to $54 billion. This worsens a bad situation. As usual in Washington, it also relies on taxpayers to pay for the grief.

Mr. Obama's push for nuclear power is a payoff to the nuclear lobby to win GOP support for his horrendous energy bill, now stalled in Congress. The legislation was bad enough already, with the crippling economic consequences of its carbon "cap and trade" regulations. His commitment would pile on more federal interference and potential costs. Some critics foresee another multibillion-dollar federal bailout when nuke-plant loans begin to default.

We are on record supporting nuclear development. But we don't want the federal government tipping the scales to favor the alternative-energy source du jour.

Federal loan guarantees no doubt would result in loans made that otherwise wouldn't be.

Does this sound familiar? The housing collapse was partly a result of similar lending practices encouraged by the federal government.

With loan guarantees, the targeted beneficiaries are assured that if they can't make their loan payments, the government will — with taxpayers' money. All taxpayers who aren't in the business of building nuclear power plants will be on the hook for those who are.

Federal loan guarantees may help bring online a handful of new nuclear reactors. But they will also penalize taxpayers and consumers while stifling competition.

The fact that some Republicans are happy with Mr. Obama's proposal shows that compromised integrity is bipartisan. Republicans are against big, coercive government — until big, coercive government cuts a check to them or their friends. They seem oblivious to being bribed with their own money or their neighbors' money. The government lures them shamelessly into a pure money grab.

That's how government plays favorites. It's not just counterproductive. It's wrong.

REPRINTED FROM THE NORTHWEST FLORIDA DAILY NEWS.

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