I’ve commented on the corruption of the Solyndra scandal, but it’s important to understand this is not just a story of sleaze.
From an economic perspective, the real problem is that green-energy programs cause a misallocation of capital. Simply stated, government intervention diverts resources from more productive uses.
Here are a couple of examples, explained in videos put together by Senator Jim DeMint’s office.
The first video shows how a subsidiary of Coca-Cola used White House favoritism to subsidize its energy costs.
And the second video explains how a Spanish company, thanks to the Obama White House, benefited from industrial policy.
And what’s the economic impact of these forms of crony capitalism? I did a back-of-the-envelope calculation, estimating that there’s about $160,000 of investment for every real job in the private sector.
Click here to listen to the list of green-energy programs that create jobs more efficiently.
[...] (HT: Dan Mitchell) [...]
[...] The Solyndra Scandal Reeks, but the Entire Green-Energy Program Is a Scam [...]
[...] Since I’m fond of these little phrases, I am pleased to see that the ranking member of the Senate Budget Committee has proposed a “Solyndra Rule” that would bar any consideration of higher taxes so long as politicians are squandering money on corrupt scams such as green energy programs. [...]
[...] The notion that bureaucrats and politicians can boost prosperity with some sort of “fund for growth and competitiveness” is hardly worth a rebuttal. I’ll just wish them luck as they create European versions of Solyndra. [...]
[...] let’s not forget examples of sleaze and corruption such as the Solyndra scam and the ethanol [...]
[...] I’m not sure this is humorous. Whether we’re looking at ethanol, Solyndra, or other green-energy scams that promote corruption and undermine the economy, this is not a laughing [...]
[...] I’m not sure, though, why anybody would be shocked by these results. We have a government in Washington that is pervasively corrupt, funneling money to corrupt scams like Solyndra. [...]
[...] I’m not sure, though, why anybody would be shocked by these results. We have a government in Washington that is pervasively corrupt, funneling money to corrupt scams like Solyndra. [...]
[...] I’m not sure, though, why anybody would be shocked by these results. We have a government in Washington that is pervasively corrupt, funneling money to scams like Solyndra. [...]
[...] to be the wrong answer. When politicians try to allocate labor and capital, we get policies like Solyndra. We get Fannie Mae and Freddie Mac. We get TARP, the minimum wage law, and a 72,000-page tax [...]
[...] be the wrong answer. When politicians try to allocate labor and capital, we get policies like Solyndra. We getFannie Mae and Freddie Mac. We get TARP, the minimum wage law, and [...]
[...] be the wrong answer. When politicians try to allocate labor and capital, we get policies like Solyndra. We getFannie Mae and Freddie Mac. We get TARP, the minimum wage law, and [...]
[...] Or what about Government Motors? Or companies like Solyndra that are part of the green energy scam? [...]
[...] I’m not sure, though, why anybody would be shocked by these results. We have a government in Washington that is pervasively corrupt, funneling money to corrupt scams like Solyndra. [...]
[...] Obama, needless to say, is an expert at squandering other people’s money, as illustrated by money pits such as the faux stimulus and the green energy scam. [...]
[...] Obama, needless to say, is an expert at squandering other people’s money, as illustrated by money pits such as the faux stimulus and the green energy scam. [...]
[...] already making similar mistakes in other areas, as evidenced by the green energy scam. Now it’s happening with the Fed. Next thing you know, you’ll wake up one day speaking [...]
[...] This isn’t very prudent or wise since every economic theory agrees that capital formation is key to long-run growth and higher living standards. Even Marxist and socialist theory is based on this notion (they want government to be in charge of investing, so they want to do the right thing in a very wrong way – think Solyndra on steroids). [...]
[...] This isn’t very prudent or wise since every economic theory agrees that capital formation is key to long-run growth and higher living standards. Even Marxist and socialist theory is based on this notion (they want government to be in charge of investing, so they want to do the right thing in a very wrong way – think Solyndra on steroids). [...]
[...] thought Romney’s response about corrupt Solyndra-type preferences was quite [...]
[...] Obama, needless to say, is an expert at squandering other people’s money, as illustrated by money pits such as the faux stimulus and the green energy scam. [...]
[...] Green energy programs lead to Solyndra-style scandals. [...]
[...] when Obama claims that corrupt, pork-barrel projects like Solyndra are “an investment,” I shake my head with disgust but I don’t get overly [...]
[...] talking about TARP bailouts, our loophole-ridden 72,000-page tax code, Obamacare favoritism, or green-energy scams, it seems like the federal government is a giant favor [...]
[...] talking about TARP bailouts, our loophole-ridden 72,000-page tax code, Obamacare favoritism, or green-energy scams, it seems like the federal government is a giant favor [...]
[...] when Obama claims that corrupt, pork-barrel projects like Solyndra are “an investment,” I shake my head with disgust but I don’t get overly [...]
[...] not look at government support for the alternative energy industry.” So Obama’s corrupt “green energy” programs got a free pass. Gee, how [...]
[...] thought Romney’s response about corrupt Solyndra-type preferences was quite [...]
[...] thought Romney’s response about corrupt Solyndra-type preferences was quite [...]