Thursday, February 7, 2013

A Primer on Green Energy Failure



The Obama Administration invested billions in "green energy" initiatives championed by donors to his campaign.  As regular readers may recall I refer to this as Social Cronyism - aka Crony Capitalism in a Republican administration - both of which are rampant American politics.  

Under Social Cronyism the government picks winners and losers in the market place, and fails spectacularly when it does so.  For example, of the $20.5 billion guaranteed loan monies paid by the Department of Energy through the so-called 1705 Loan Guarantee Program over $16.4 billion went to companies owned  or backed by major Obama donors.  See, Peter Schwiezer, Throw Them All Out.  

Unfortunately, under the Social Cronyism model owners and backers suck the taxpayer monies from the businesses then cast the spent shells aside.  As a result, by October of 2012 more than half of the 30+ Obama donor backed companies that received billions in federal subsidies - both grants and guaranteed loans - filed bankruptcy and all 30+ are circling the proverbial drain.  List of Failures.  Again, this is because the companies lack a viable business model and depend, entirely, upon the largess of the federal teat to which they've attached themselves for their existence.

I remind readers of these realities, because too many of my liberal friend continued to clamor for a federal teat of their own.  Reliance on government backed subsidies is not a viable long term business model.  Investing in lobbyists in Washington D.C. - which is fast becoming "The Capital" described in The Hunger Games - represents a viable strategy only so long as the people - those in the Twelve Districts in the Hunger Games - remain docile and compliant, or as Margret Thatcher famously put it, the politicians run out of other people's money.  Regardless of the precise failure mechanism Social Cronyism will fail.

Individuals and entities interested in protecting the environment and increasing the efficiency with which planning design and construction services are delivered must not succumb to the Siren Song of federal subsidies.  To remain viable businesses must operate under model the delivers real value to real customers.  The "green economy" is a false enterprise, built on the backs of the taxpayers that is destined to collapse.  If you involved in an enterprise attached to a federal green teat get out from under the teetering structure while you can.


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James L. Salmon, Esq.
Collaborative Construction
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Cincinnati, Ohio 45202

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