Right Thinking From The Left Coast
Don't stay in bed, unless you can make money in bed. - George Burns

Friday, November 05, 2010

Why Green Stimulus Doesn’t Work

Read and weep:

Solyndra Inc., the high-flying solar panel maker once touted by President Barack Obama as a model for a green energy future, said Wednesday it has scuttled its factory expansion in Fremont, a move that will stop the company’s plans to hire 1,000 workers.

...

The moves mean that instead of having 2,000 workers in Fremont, Solyndra will cap its work force at 1,000, which is about the current level. Solyndra also will, over the next several weeks, eliminate 155 to 175 jobs in Fremont. That includes 135 contract employees and 20 to 40 full-time workers, said David Miller, a Solyndra spokesman.

The US government sank half a billion dollars into this company.  They might still succeed, but it’s looking bad because of competition from companies that didn’t get government lucre.

This is a perfect illustration of the stupidity of the green jobs initiatives our government is involved in and the double stupidity of the stimulus.  Every liberal commentator and economist has blithered about how green jobs are the future and the government has to invest in them.  But if green jobs are the the future, the government shouldn’t have to invest in them.  The market will invest just fine.  Maybe the government can help with broad-based supply-side tax cuts or the streamlining of regulations or free trade agreements.  But its track record on picking and choosing the winners in any industry, of stimulating the development of industry is simply horrid.  Read the post earlier this week on the railroads—government subsidies produces a nightmare of corruption and influence-peddling that did little to stimulate the economy.

Politicians and bureaucrats do not “invest” stimulus money for scientific or economic reasons; they invest for political reasons.  Solyndra didn’t get half a billion dollars because they were the best company out there; they got it because they caught the ear of the government.  And now our investment is “paying off” the way direct government investments tend to.

Posted by Hal_10000 on 11/05/10 at 09:13 PM in Politics   Law, & Economics  • (0) TrackbacksPermalink
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