Topic: Liberal Fascism
Of all the reasons to hand Barack Obama a pink slip in November 2012, my favorite is the green energy/green jobs debacle.
Green energy—supposedly clean, cheap, abundant and a mighty job generator—is one of those fads beloved of progressives that promises to deliver something for nothing. Oh, sure, the taxpayers will be squeezed for the few hundred billion necessary to cover startup costs—but after that, here comes the sun…and the wind…and the ethanol…and the Volt…
One little problem, though: There is no free lunch. But progressives who view the economy through green-colored glasses are dismissive of that bedrock economic law. The idea that all economic decisions involve tradeoffs is anathema to them. If your heart is in the right place, if you’re on the side of trees and whales and the snail darter, the normal rules simply do not apply.
This is the mind-set that gave us Solyndra and a string of other green energy “investments,” all of which cratered at significant cost to the hard-pressed US taxpayer. Now another green energy company is on the ropes: A123 Systems, which makes batteries for electric cars and received a $249 million grant from Obama’s Department of Energy.
As Robert Bryce explains in this article for National Review Online, A123’s problem is fundamental: Its survival depends on sales of all-electric cars, and few people want to buy all-electric cars. (Fun fact: In March, Chevy sold 2,289 Volts at $40,000 a pop, while Toyota sold 28,289 Corollas at $16,000 a pop. Both vehicles get about the same highway mileage. You do the math.)
During A123’s initial public offering in September 2009, the company’s stock sold for $13.50 a share. Last Friday, it was selling for $0.93 a share and Bryce predicts that A123 will file for bankruptcy within eighteen months. Not much to show for $249 million, is it, fellow taxpayers? Thanks, Barry!