AI and Energy Consumption
What to know: AI is eating up so much energy that it’s overwhelming the power grid.
The TPPF take: Reality keeps hijacking the Green New Deal.
“In the realm of artificial intelligence (AI), where data crunching and machine-learning algorithms reign supreme, the demand for energy has emerged as a critical concern,” says TPPF’s Chuck DeVore. “Silicon Valley’s techno-optimism — and business plans — must be fueled by reliable power.”
For more on AI and energy needs, click here.
Health and Well-Being
What to know: The American health care system is “incentivized to reduce payments to providers,” according to the New York Times. Yet health care costs have continued to skyrocket.
The TPPF take: We have destructive incentives embedded in our health care laws. For example, doctors can’t offer free care to patients, in most cases.
“Under current regulations, doctors contracted with Medicare and Medicaid face a $10,000 penalty for each instance they charge a non-government patient substantially less than the government rate,” says TPPF’s Tanner Aliff. “With some exceptions, doctors cannot offer free services out of the goodness of their hearts unless they can substantiate a patient’s financial hardship with detailed documentation.”
For more on health care and financial incentives, click here.
Out of Gas
What to know: A new survey says that nearly half of all electric vehicle owners do not plan to purchase another one; many say they experienced buyer’s remorse and want to return to internal combustion engines.
The TPPF take: The Biden administration can’t order up consumer demand at will.
“As Fortune reports, ‘no one wants to buy used EVs,’ leaving EV used-car values in free fall,” says TPPF’s Mark Mills. “That’s a problem for auto companies because their finance arms have been left holding the bag on fictitious residual values for leased vehicles. According to one industry executive, the situation ‘has the potential to destroy billions’ of dollars in value for auto firms.”
For more on electric vehicles, click here.