And it threatens to distort the new industry in much the way the planned economy distorted other industries in the past, favoring inefficient government-owned ventures over more creative private ones.
Niemann and Simons (2003) show that limiting the corporate tax deductibility of stock option plans can distort the decision to implement such a plan.
Obama wants to eliminate tax deductions that, according to his own budget plan, "distort markets by encouraging more investment in fossil fuel production than would occur under a neutral system".
Paul Krugman, for instance, calls this the "central issue," and argues that because the non-recourse loans are a massive subsidy to investors — which they are — the plan will distort the prices that investors are willing to pay for these assets, and therefore "has nothing to do with letting markets work".
Labor Labor has promised a review of the zoning rules with planning spokesman Brian Tee saying the policy had "distorted growth and planning by forcing intensive high-rise development in some areas, while locking up leafy Liberal suburbs".
There is a real danger the democratic underpinning of the planning system will be distorted," said Neil Sinden, policy director at CPRE.
The recent performance of the 30-year bond has been distorted by Treasury plans to reduce issuance and buy back longer-term Treasury securities with the federal budget surplus.
For 70 years the Soviet Union's borders were closed, and its internal links distorted by central planning.
At one point the developer wanted to move it to the east side of Greenwich Street -- but the new location distorted the overall plan's balance and blocked the symbolic alignment of the Freedom Tower's 1,776-foot spire with the torch of the Statue of Liberty.
Peter Edelman ("The True Purpose of Welfare Reform," Op-Ed, May 29), in a thoughtful evaluation of 1996 welfare reform legislation and Congressional initiatives to refine policy, identifies politicized cosmetic plans that distort what should be our chief goal: how to elevate families out of poverty permanently.
