Subsidizing Green Energy is Throwing Good Money After Bad

Another one of the Obama backed green energy companies is sinking fast.  ECOtality Inc. which received $100 million in federal stimulus grants has laid off all it employees and is facing two class action lawsuits, trying to recoup investors’ money by selling the company’s assets.  One hundred million here, half a billion there, a billion over there; pretty soon we are talking about real money being wasted on President Obama’s green energy fantasy.  When will Congress call a halt to these programs?  And how much more will be added to the deficit in the meantime?

Comments (10)

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  1. Lloyd says:

    As long as government thinks they can actively promote their own agenda with positive outcomes, government will keep spending our money and losing it. They may never learn that it is the market that decides what will succeed.

  2. JD says:

    Subsidizing bad industries is a double whammy. First, it distorts the market by making bad companies look good and good companies look bad (in comparison), ultimately resulting in the expansion of bad companies and the shuttering of good. Second, the money comes out of public coffers, making us all poorer.

    • Dewaine says:

      So, we get poorer products and can buy less of them?

    • Sabal says:

      But, how do we know that we’re subsidizing a bad industry? If we keep investing, a “bad” industry could become a good one and provide great benefits.

      • JD says:

        That doesn’t seem likely historically or logically. Subsidization insolates companies from many consequences meaning that there is less “fire to their feet”. A company competing openly will have to work harder to make it.

  3. Tomas says:

    Government acting as a start up investor just doesn’t sound like the best idea.

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