This is CBSI on the world. I'm John Batchel. I welcome Professor Richard Epstein of the Hoover Institution,

teaches law at NYU and the University of Chicago, writing about energy policy, here in these

transition weeks between the Biden administration and the second Trump administration.

As an example, I believe, of Richard's very careful analysis,

I read the headline of an editorial in the Wall Street Journal some days past.

Biden tosses Rivian, a $6 billion lifeline.

The company is losing $107,043 per EV sale,

and taxpayers could end up paying. I learned from this editorial

that the Inflation Reduction Act includes a $7,500 tax credit per vehicle for all EV buyers,

$40,000 credit for commercial EVs. That's significant because Rivian turns out trucks,

which look a whole lot like commercial enterprises.

Despite the fact that Evian is dominated by one owner, Amazon, there's a shallow pocket.

Richard, a very good evening to you. The Inflation Reduction Act shows up in the Rivian editorial,

Rivian now losing $107,000, according to the Wall Street Journal, per EV sale.

This looks like industrial policy gone mad.

How do we understand the Biden people?

What have they gotten this into?

Good evening to you.

Well, I wish I knew. This is not only industrial policy. I would regard this as a form of industrial suicide.

If one goes back to the situation with respect to the Inflation Reduction Act, it was a conceit.

What they said is we're going to impose a set of new taxes, and we're going to give a set of new subsidies.

And magically, of course, since it's the Biden administration, the subsidies will be smaller than the taxes.

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