James Pethokoukis

Politics and policy from inside Washington

Solyndra, the logical endpoint of Obamanomics

September 16, 2011

The bankruptcy of solar-panel maker Solyndra neatly encapsulates the economic, political and intellectual bankruptcy of Barack Obama’s Big Idea. It was the president’s intention back in 2009 to begin centrally reorganizing the U.S. economy around the supposed climate-change crisis.

To what end? Well, Obama claimed his election would mark “the moment when the rise of the oceans began to slow and our planet began to heal.” But that was just the cover story. At its core, Obamanomics is about the top-down redistribution of wealth and income. Government spending on various “green” subsidies and programs, along with a cap-and-trade system to limit carbon emissions, would enrich key Democrat constituencies: lawyers, public sector unions, academia and non-profits.

Oh, and Wall Street, too. Who was the exclusive financial adviser to Solyndra when it was trying to secure the $535 million loan from Washington? Goldman Sachs. And had the cap-and-trade scheme been enacted, big banks stood ready to reap billions from the trading of carbon emission credits.

No wonder many Democratic strategists predicted their party’s 2008 landslide win would usher in a generation of political dominance. Obamanomics, essentially, would divert taxpayer dollars to the Green Lobby – and then into the campaign coffers of the Democratic Party. This is what crony capitalism is really all about: politicians enriching favored businesses, who then return the favor. Or maybe it’s the other way around, Who cares, really. It’s an endless, profitable loop for both.

And Obama almost pulled it off. The Great Recession conveniently allowed the president to start the spendathon under the guise of economic stimulus. (“You never want a serious crisis to go to waste. And what I mean by that is an opportunity to do things you think you could not do before.” – White House Chief of Staff Rahm Emanuel, 2009). As it turns out, the $38.6 billion loan program for clean energy firms that Solyndra benefited from has created just 3,545 permanent new jobs after parceling out half its dough. That works out to around $5 million a job.

Unfortunately for the Obamacrats, the financial meltdown also undercut political support for cap-and-trade on Capitol Hill. Voters worried the scheme would slow growth and cost jobs. But without permanently and continually raising the price of carbon-based fuels, many green businesses can’t make the numbers work.

As Peter Lynch, a New York-based solar energy analyst, told ABC News:

It’s very difficult to perceive a company with a model that says, well, I can build something for six dollars and sell it for three dollars. Those numbers don’t generally work. You don’t want to lose three dollars for every unit you make.

Unless, of course, American taxpayers make up the difference — though in the case of Solyndra, even government’s thumb on the scale wasn’t enough to save it. And it often isn’t enough when an investment’s goals are a fat political reward rather than a financial one. Indeed, studies of similar government investment efforts around the world show they’re usually a bad deal for taxpayers. An analysis of Canada’s government-backed venture capital fund, for instance, found the recipient firms “underperform on a variety of criteria, including value-creation, as measured by the likelihood and size of IPOs and M&As, and innovation, as measured by patents.”

Even after getting the loan, Solyndra spent $187,000 on lobbying efforts, according to Bloomberg, including trying to get the White House to push government agencies to install its panels on the rooftops of federal buildings and  extend “buy American” rules that favor U.S. companies. Instead of revenue seeking, Solyndra was “rent seeking,” which means trying to make money by manipulating government .

And when the White House was trying to determine whether to sink another $67 million into Solyndra, its calculus was political not financial (via The Washington Post):

“The optics of a Solyndra default will be bad,” the Office of Management and Budget staff member wrote Jan. 31 in an e-mail to a co-worker. “If Solyndra defaults down the road, the optics will be arguably worse later than they would be today. . . . In addition, the timing will likely coincide with the 2012 campaign season heating up.”

That’s not how the private sector makes investment decision. But it’s routine for government where the stakeholders are politicians, bureaucrats, lobbyists and favored constituencies. The takers, not the makers. That’s whose side Obamanomics is on.

Comments

This is *REUTERS* publishing this stuff?

Fantastic piece, but where were you three years ago?

Posted by paul1149 | Report as abusive
 

All true. But the terrible part is that many of us knew this two years ago. Obama is a Marxist, and his real model is Benito Mussolini, who gave up on Socialism and created Fascism.

Posted by JoeFromSidney | Report as abusive
 

No one should be surprised about this, least of all his plan to redistribute the wealth. A good con man considers every angle and plays on the weakness of his mark. A willing dupe, a good line and he was in. Now, how to get rid of him.

Posted by logiculus | Report as abusive
 

Great synopsis James. With the feds trying to regulate farmland dust, CDL’s for combine drivers, cranking up fuel standards for commercial vehicles and continued support for ethonal which diverts food to (impractical) energy production they are showing their support for a few favored mega corps and squashing the hopes of the middle class by raising the cost of everything from fuel to food to housing, let alone our taxes. It is time for government to get out of the way, let Americans do what we do best, pass or fail on our on merits and put a stop to “too big to fail” and “we must pass it now to find out what is in it (the bill).

Posted by rip300rog | Report as abusive
 

I’ve had to rub my eyes at least twice to be certain I was reading a piece from Reuters. One of the other comment contributors was right, “where were you 3+ years ago/” If you and the rest of the Obama Propaganda Machine A.K.A. the “mainstream” media had properly vetted this toad when you should have, we wouldn’t be in near as mess as we presently are and continue to spiral down toward.

Great piece but, day late and a dollar short.

Posted by G2Bruce | Report as abusive
 

……why Paul Krugman’s endless cry for more government spending is delusional.

None of the cash will ever get beyond the shysters who shovel it in their pockets and leave town.

Posted by bobfiden | Report as abusive
 

Waoh, Reuters calling spade a spade. Did Sun rise from west today?

As G2Bruce pointed out, good to see Obama finally being called the toad he is, and his marxist policies being exposed

PS: Reuters, please make it easy to leave comments without going thru hoops

Posted by Ashyan | Report as abusive
 

I have an answer to all the comments to this shocking news story!!! It is not just Reuters! It’s starting be the whole liberal machine media and there is only one reason why they are finally dumping on Obama and that is they are trying to get rid of him to be replace with another candidate for 2012 elections!!!

It is not that they really care what he is doing. No, it’s he’s bring down the whole democratic machine!

More than likely Evan Byed the former democrat senator who resign 2009 can now run successfully against Obama! As if he is blameless!!!!!

Sarah Palin has been an advocate against “corporate crony capitalism” for 20years now. She is a hug threat to the political machine! In her Iowa Indianolia speech Sept 5 she talk about the political esablishment corruption in both parties and of how to get rid of the corruption!

Palin2012!!!

Posted by Capitalist75 | Report as abusive
 

I have an answer to all the comments to this shocking news story!!! It is not just Reuters! It’s starting be the whole liberal machine media and there is only one reason why they are finally dumping on Obama and that is they are trying to get rid of him to be replace with another candidate for 2012 elections!!!

It is not that they really care what he is doing. No, it’s he’s bring down the whole democratic machine!

More than likely Evan Byed the former democrat senator who resign 2009 can now run successfully against Obama! As if he is blameless!!!!!

Sarah Palin has been an advocate against “corporate crony capitalism” for 20years now. She is a hug threat to the political machine! In her Iowa Indianolia speech Sept 5 she talk about the political esablishment corruption in both parties and of how to get rid of the corruption!

Palin2012!!!

Posted by Capitalist75 | Report as abusive
 

I have an answer to all the comments to this shocking news story!!! It is not just Reuters! It’s starting be the whole liberal machine media and there is only one reason why they are finally dumping on Obama and that is they are trying to get rid of him to be replace with another candidate for 2012 elections!!!

It is not that they really care what he is doing. No, it’s he’s bring down the whole democratic machine!

More than likely Evan Byed the former democrat senator who resign 2009 can now run successfully against Obama! As if he is blameless!!!!!
Palin2012!!!

Posted by Capitalist75 | Report as abusive
 

Wow! Is this really Reuters? Excellent article! Green energy is a joke, especially in the hard economic times. We have at least 200 years of fossil fuel energy in these United States. That does include off shore drilling for oil and gas. We need Change in Washington, D.C. before liberalism destroys our nation. And we must remember the rhinos who march to the tune of bi-partisan, and rid ourselves of those too.

James, I do look forward to reading and commenting on more articles from you. This is so unlike anything I’ve ever read from Reuters.

Posted by Sherlocktoo | Report as abusive
 

Born with the Milton Friedman gene instead of the Hugo Chavez mutation. Too bad for me…

Posted by nearsited | Report as abusive
 

Actually Jimmy P is the token conservative for Reuters. If you watch CNBC, you’ve probably seen him hundreds of times. He isn’t some squishy conservative either. The guy is very intelligent and articulate in arguing free market ideals. Reuters itself is left leaning but Jimmy P isn’t dissing O so that he can be replaced with Hillary or something like that. I believe he is a Romney backer.

Posted by jim1740 | Report as abusive
 

It would appear that a crime has been committed here……The Subordination of the taxpayers funds. Which is why the W.H. is scrambling to meet the deadline for the 9 billion….Isn’t it just too coincidental that Solyndra filed for Chapter 11 on 9/6 , and Obama announced he would present his ” jobs bill ” after his vacation on 9/8.

Posted by Raspail | Report as abusive
 

It would appear that a crime has been committed here……The Subordination of the taxpayers funds. Which is why the W.H. is scrambling to meet the deadline for the 9 billion….Isn’t it just too coincidental that Solyndra filed for Chapter 11 on 9/6 , and Obama announced he would present his ” jobs bill ” after his vacation on 9/8.

Posted by Raspail | Report as abusive
 

Don’t Leftists understand that government can’t really create jobs? They have no money of their own! They take money from ALL taxpayers and then give it back to SOME taxpayers whom they favor. If they reduced taxes, those people wouldn’t put that extra money in their mattress; they’d put it in a bank or spend it. Either way, it’s put back in the economy! Leftism only makes sense if you believe the collective wisdom of a few thousand in DC is stronger than the collective wisdom of 300M Americans! How arrogant!

Posted by Tim_in_Minn | Report as abusive
 

Obama needs to do a Nixon.

Posted by Raspail | Report as abusive
 

where are my posts?

Posted by Raspail | Report as abusive
 

This is a pay to play scandal. It’s about funneling taxpayer money to campaign contributors at below market rates, putting taxpayers on the hook for their losses, and bullying the reviewers to make it happen. It is not about the viability of solar. It’s about deep and possibly criminal corruption in the Obama administration. There needs to be an investigation and most likely a special prosecutor.

Posted by stljoe | Report as abusive
 

As quoted by Debbie Wasserman in Politico article,

“This is one company,” said Florida Rep. Debbie Wasserman Schultz, chairwoman of the Democratic National Committee. “These are risky propositions whenever you’re dealing with innovation. But it doesn’t mean we shouldn’t take those risks.”

Can we all be independent thinkers for one minute and agree that what was quoted by Debbie has to be one of the most assinine statements ever made!

Without following a single modicum of DUE DILIGENCE on this loan, my God the Bush administration rejected it, Debbie is telling us that throwing over half a billion dollars to the wind is good use of tax payers money all in the name of TAKING A RISK!

Is this the choice we have in Obama! Do you think for a moment that if Debbie’s entire savings were bundled into that loan, that her position would be a little different. Debbie would have REJECTED the loan!

The Chair of the DNC is very clearly telling us the tax payer, and that’s all of us here, that our money is not worthy of the same level of stewardship as her own.

Posted by GrogC | Report as abusive
 

As quoted by Debbie Wasserman,

“This is one company,” said Florida Rep. Debbie Wasserman Schultz, chairwoman of the Democratic National Committee. “These are risky propositions whenever you’re dealing with innovation. But it doesn’t mean we shouldn’t take those risks.”

Can we all be independent thinkers for one minute and agree that what was quoted by Debbie has to be one of the most assinine statements ever made!

Without following a single modicum of DUE DILIGENCE on this loan, my God the Bush administration rejected it, Debbie is telling us that throwing over half a billion dollars to the wind is good use of tax payers money all in the name of TAKING A RISK!

Is this the choice we have in Obama! Do you think for a moment that if Debbie’s entire savings were bundled into that loan, that her position would be a little different. Debbie would have REJECTED the loan!

The Chair of the DNC is very clearly telling us the tax payer, and that’s all of us here, that our money is not worthy of the same level of stewardship as her own.

Posted by GrogC | Report as abusive
 

You have to love the govt speak.
“The optics of a Solyndra default will be bad,”…

Optics? Really? Sounds like a govt worker trying to sound smart, as if he’s engaged in some scientific project.

Posted by azuri | Report as abusive
 

Well done Jimmy P.

I’ll look forward to hearing from you again after you settle in at your new job . . . wherever that may be.

I also want to convey a personal thank you. Now that you’ll no longer be with state-controlled Reuters, I’ll be able to avoid the agony of including them in my daily news sweep. I’m very grateful.

Posted by JDBoone | Report as abusive
 

This article pretty much sums up why the lesser evil is the republican party. It’s not that complicated folks. The media helps the Democrats so they can all do whatever they want. The repubs don’t get the media help, so they’re a little better.

Posted by bigonza | Report as abusive
 

According to TNYT(9/14) DOE said, “Solyndra was well on its way to getting a loan guarantee (2007) during the GWB administration. In fact, by the time BO took office in late Jan, the loan program had already established a loan guarantee for Mar 2009.”

Under both the GWB & Obama administrations, they made 18 conditional commitments for solar, wind & geothermal energy that DOE says they are “confident the portfolio we have will succeed.” Businesses do fail – often losing a lot of money. There are other solar research companies & university researchers working on this and at some point- new solar technology will prove successful. It’s not fair, however, to ‘blame’ Pres. Obama solely for Solyndra’s default -when GWB helped initiate Solyndra’s loan guarantee in 2007.

Posted by acrosebud | Report as abusive
 

Great article James. This loan program is exactly the type of ‘government knows best’ type funding of socialist loved innovation that led to such capitalism destroying things like Google (national science foundation grant) and the internet (DPRA). Keep up the great work – american can’t afford these type of socialist ideas. I hope that soon you’ll address a similar ‘obamanomics’ like program that is run by that socialist governor of texas which is being using to redistribute people’s money to businesses in his state…

Posted by NoVaCRE | Report as abusive
 

It really is surprising to see an article that dissects Obama policy and politics like this. Thank you for telling it like it is.

If you really think about it, the op-ed pieces that tend to favor Obama and Liberal policies seem to be long on theory and short on facts.

In contrast, as is this article, op-ed pieces that point out the huge blunders (and dare I say, the possible fraud and deceit)are usually the ones filled with plenty of specifics and facts.

This is not a coincidence.

Kudos, and thanks for telling the truth about this administration.

Posted by Dlei | Report as abusive
 

Oil-backed conservatives have been absolutely ecstatic over the collapse of American solar-power company Solyndra and the rise of China as the dominant country in green energy, because they think they can turn this into a story that makes President Obama and government look bad. It also gives them a bonus opportunity to attack alternatives to coal and oil. There is no “scandal” behind what happened to Solyndra. This is just one more conservative smear, made up from whole cloth and spread around by the network of conservative bloggers, websites, talk radio and Fox “News”, hoping the “mainstream media” will be tricked into propelling the propaganda out to the public.
Conservatives have developed and refined a “smear machine” technique of making up accusation after accusation after accusation (after accusation after accusation), repeating them endlessly and hysterically in conservative-funded outlets, and working to get major media outlets to pick up and repeat them. Unfortunately they are often successful at driving phony smears into the public arena. Even though the stories are invariably refuted after investigation, by the time each smear is refuted many, many more are circulating. After a while people begin to believe “where there’s smoke there’s fire.”
The right has been trying to push the idea that something bad has happened involving Solyndra. They are calling it a “scandal.” But it is entirely a manufactured scandal. This is what they do. Nothing bad happened. The supposed campaign donor/investor is not an investor. The timing of the loan is not suspect, it followed the proper, transparent, accountable procedures. The loan assisted the development of a promising technology. The green-energy industry stands to create millions of jobs and trillions of dollars for the countries that are smart enough now to make the investments that help them grab a chunk of it. The loan was good for the country, even though one company went bankrupt.
But by the time this smear is refuted, five more will have taken its place.

Posted by GetpIaning | Report as abusive
 

I don’t mind Obama but I can’t stand Greenies. Environmentalism has never been about any environment, neither concerned for humans nor for the ecology as a whole. It is an anti-modern movement, just like Jihadist Islam, seeking to return all (except the activist class I suppose) to a medieval standard of freedom and of living. In fact there is only one Jihad on the other, Enemy, side in the current Fourth World war, for the Anti-modern Jihad has Greenie and Islamic wings, as well as a wing for every other religion or Fascist ideology known to mankind.

Why else do we get so-called environmentalist policy doubling the price of the world’s corn thus starving the poor; poisoning the soil and water of the Corn Belt, and creating an enormous dead zone in the Gulf of Mexico, worse than 1,000 oil spills? And that’s just Ethanol…which also consumes billions in direct and indirect subsidies.

And on a lighter note, we have light bulbs and flush toilets that don’t light and don’t flush. The list is endless.

I think repealing the N.E.E.P.A. and abolishing the EPA would be good starts, plus repeal of the Endangered Species Act and passage of a new statute prohibiting people with merely an ideological interest in a matter from filing any lawsuit. Then perhaps we might discharge all known Environmentalists from employment at any university, college, school, or other publicly funded job of any kind.

These people are enemies of America, as evil as Osama Bin Laden and ten times as dangerous, and they should meet Bin Laden’s fate.

Posted by johnwerneken1 | Report as abusive
 

The Alarmist movement never has had anything to do with science. It’s based on elitist preferences for free parks for themselves, guilt at their outstanding wealth and extravagant toys, and disdain for average folks hope actually see such things as a single family home, a job, and a car to carry one between home, job, and store in to be upgrades in lifestyle. AND the elite has no problem at all grabbing ever more political power or in impoverishing or even starving hundreds of millions of others (i.e. Ethanol and the disappearance of inexpensive food, quite a problem to countries that have famine), so long as the elite’s perks continue to be not only protected, but further expanded through boondoggle subsidies

Posted by johnwerneken1 | Report as abusive
 

Solyndra must have been done in by a Conspiracy including Obama and Bush (since BOTH are equally responsible for this, one signed the law and the appropriation one approved the investment) and either the Communists or the Tea Party (who can tell the difference? Both inhabit an alternate reality and would happily destroy the Government of the United States of America to get what they want).

I mean those highly skilled Green Engineers must be amongst the highest paid and most skilled workers in History: $317,406.00 per job for 538 of them; $82, 058.00 each just to get 719 more job placements, and then there are the NFL-grade workers at Johnson Controls, $2,000,000.00 each for 150. With engineers like that, how could ANY business go broke?

I always heard that there was some reason why we should support more Green Jobs but not until today could anyone give me a clue! Now I know! I’m out of work, where do I apply?

Posted by johnwerneken1 | Report as abusive
 

Glad to see China investing money and employee training in unnecessary unprofitable low-wage solar. We will be able to buy solar to power our bus stop and highway lighting more cheaply, and those without wired electricity in the developing world can use it until their communities do have wired electricity. Once most of the world is developed to say Korean levels, the solar industry, or at least the Earth-based version, is toast.

Solar has most of the negatives of nuclear power: unreliable, expensive, not yet perfected, uses poisonous materials which are extracted in ways that place workers and communities at great risk of being poisoned. It ought to get sued and protested!

Posted by johnwerneken1 | Report as abusive
 

Hmmm…In Texas, wind power made up 8 percent of the the electrical capacity last year…But Obama’s a communist…What’s that make Bush and Perry?

Posted by RobertWhitlock | Report as abusive
 

Debbie Wasserman should be taught the difference between “risk” and “gambling.”

When a “risk” fails investors includes that in the learning curve of what not to do in the future.

“Gamblers” on the other hand, are just hoping to hit, big difference.

Posted by TomGenin | Report as abusive
 

How do you spend nearly a trillion dollars and give us 9.1% UNEMPLOYMENT, Record long term UNEMPLOYMENT, a record increase in poverty, the first downgrade of the nation’s AAA credit rating in history, nation destroying levels of debt, and a failing economy? You do it the way Obama did it. Not to stimulous the economy and create jobs, but to funnel hundreds of billions to the special interests that supported your election. Solyndra tell the tale, and its only the tip of a giant iceberg. And now Obama wants to do it again with another $500 billion and “Son of Stimulous”. More disaster, more damage to our nation from Obama! The democratic voters of NY-9 showed the nation the way last Tuesday! They told Obama NO, and sent him a message. That’s what the rest of us have to do!

Posted by valwayne | Report as abusive
 

What started as the great global warming deception and fraud, now known as “climate change,” represents an investment of time and political capital that has built an infrastructure that means to destroy the level playing field of true free enterprise. People must be fully awake to the fact that if they lose economic freedom they lose all other freedoms. Beware of any initiatives or programs named “sustainable” because it is not individual freedom they want sustained at all. If carbon credit trading ever becomes a reality America will cease to be free.

Posted by ROCNewsletter | Report as abusive
 

lol I bet loads of demarxcrats reported this article to that new gestapo website.

Posted by zalzan | Report as abusive
 

This is a shockingly good piece…. by Reuters??? Finally an article providing a clear view of the American Conservative’s skepticism over Big Green. We conservatives are not superstitious Neanderthals; rather conservatives reject the idea that the Obama cure for what ails the globe will be anything other than the same old academic’s ideological utopian tripe that has been plaguing entrepreneurs and creative people since the rise of Marxist Socialist dogma over 100 years ago.

Posted by DrCarmine | Report as abusive
 

This is a shockingly good piece…. by Reuters??? Finally an article providing a clear view of the American Conservative’s skepticism over Big Green. We conservatives are not superstitious Neanderthals; rather conservatives reject the idea that the Obama cure for what ails the globe will be anything other than the same old academic’s ideological utopian tripe that has been plaguing entrepreneurs and creative people since the rise of Marxist Socialist dogma over 100 years ago.

Posted by DrCarmine | Report as abusive
 

Obama is a one trick pony; in his mentality, the redistribution of private wealth solves all problems. Much like the hammer that sees all problems as a nail.

Posted by Cogs | Report as abusive
 

Obama is a one trick pony? As opposed to, say, tax cuts for the “job creators” that have been in place for over ten years now? The anti-tax mantra has become the political/religious symbol of the right that defies logic or common sense. In a time when the nation is beset by enormous financial problems, it is a placebo pill that removes the challenge of finding multi-faceted and inventive solutions to an immensely complex problem. Much like the hammer that sees the world’s problems as a thumb.

Posted by SteveoOOo | Report as abusive
 

Wow! This article is nuts. I suggest the author gets the psychiatric care he so desperately needs before he hurts himself or another. Take your meds, the doctors only want to help you. Paranoid delusions are no laugh in matter.

Posted by todji | Report as abusive
 

Obama cannot be blamed for the loss of our AAA rating. It is the work of John Boehner and associates.

Posted by jsmason | Report as abusive
 

So how do you campare this to Bush lending AIG
150 billion dollars.

Posted by MrUniteUs1 | Report as abusive
 

Kind of foolish to make any policy judgments based
on the results of one company. Other solar companies are doing fine.

Remember all the naysayers that opposed loans to the
Auto industry. The automakers are making money and putting people to work.

Posted by MrUniteUs1 | Report as abusive
 

Well, here we are. Reportedly $100 billion spent on green energy iniatives/job creation. What a fantasy so far. We had hope when it was called NASA. Now NASA’s primary mission from Obama is to reach out to Muslims. Three government agencies were committed, capable and able to truly change technology and provide hope for mankind. They were NASA, Dept of Defense, and the Centers for Disease Control. Now they all get to reach out to Muslims. No mention that Muslim Americans, Mexican Americans, Irish Americans, African Americans, Jewish Americans, all worked together to define ingenuity and progress. So far GREEN ENERGY DOES NOT WORK, nor is it cost saving. Give it to NASA as a sidebar task on their way to Mars. Give green energy research to the DOD to find a way to make smaller nuclear plants to run small towns (like submarines), and CDC to fine cures and vaccines. In my 62 years I have never seen anything so useless as the current method to find a solution to energy needs in the U.S. Only L.A. wants high speed trains in California, to go to Las Vegas, not San Francisco. The rest of California is in dire need of water to irrigate fields to again become a breadbasket. Believe me, CA agriculture has gone the way of Zimbabwe. Californian’s wouldn’t mind high speed cars though.
REPEAL OBAMACARE, REPEAL THE PATRIOT ACT, Fire Eric Holder. My Hispanic brothers and sisters, Eric Holder, U.S. Attorney General is going to get more of us killed through his malfeasance and using law enforcement as his own personal army, i.e. Fast and Furious, Gunwalker, Gibson Guitars, murder of U.S. Agents.

Gotta love the DOJ cartels under their own czars.

Posted by MyAlibi | Report as abusive
 

This author (and most of the above comments) completely miss the importance of working toward sustainability, which is a global collective problem by definition. Call it ‘socialism’ or whatever else you want, but when it comes to climate change, we’re all in the same boat together. Anyone who studies economics knows about the tragedy of the commons, which implies that the free market will not protect limited natural resources. “Obanomics,” i.e., subsidizing green energy technologies, is necessary to stimulate the development of sustainable energy alternatives because the private sector in America has largely abdicated that responsibility to solar manufacturers in China. Most conservatives agree with subsidizing infant industries–for a time–in order to build competitiveness. We need to get over this self-destructive partisanship and focus on the big picture; scalable and economical solar energy is needed for the viability of the planet, not for a political party.

Posted by C.Brownfield | Report as abusive
 

The tragedy of the Commons was the control and regulation of what was a prior “free market resource that the townspeople used under free association agreements. Today, the Federal Corporation of the United States of America seeks to dominate all resources, natural and economic, and dictate all commerce with the help of the complicitous, who justify it in the name of saving the earth. A planned economy will not make the best use of limited natural resources, because it wastes them. Tyranny has no justification, especially for something as ill conceived as Chicken Little’s “climate change.” Carbon Dioxide guilt is the hobgoblin of little minds in light of the CO¬2 just belching out from volcanoes across the world. “Green energy” needs funding only by people who believe in it and want to risk their own money. For this lame “investment” excuse, this administration has squandered taxpayers’ funds, especially when it has been proven to be the crony capitalists in the Democratic Party squandering tax money for their personal and their party’s exclusive benefit. Also, conservatives don’t endorse profligacy lest they become known as liberals.

Posted by Greenfire | Report as abusive
 

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