Simply put, the government is picking winners and losers. Or trying to, at least -- the government record on such efforts is, well, a losing one.
We saw it when President Carter was in office. The money he “invested” in a fruitless quest to create synthetic fuels proved an expensive failure. Well, the same dynamic is at work today when President Obama gives taxpayer funds to companies such as Solyndra. But good intentions are no substitute for a sound business plan.
Some will still argue that renewable energy is a worthwhile goal. But it has to be renewable energy that works. And if the potential to make money was there, private funds would follow, no problem. Subsidies wouldn’t be necessary. The fact that they are tells you a lot about the real job-creating potential of renewable energy.
A new report from the House Budget Committee sums up the situation up: “The government-as-investor model distorts markets, weakens the rule of law, wastes taxpayer dollars, and fails to spur sustainable job creation.”
So why are we allowing the green agenda to drive us further into the red?