Another green energy company is filing for bankruptcy, after receiving backing from taxpayer financed programs. I will let others debate whether the loans were received because of fraud or crony capitalism, or if this was a legitimate attempt to back a winning technology and company. You can read the background in this Washington Post story.
The point is, investing is much different than picking winners at the track, and investments on this scale leave no room for amateurs. Bottom line here folks is that the people granting loan guarantees are amateurs to begin with, even before political pressures are applied. They are working to pick winners and losers from within a failed system.
The following standard should be applied to every loan granted; would you invest your personal money in this company? Maybe, we design a policy where the salaries of employees of departments that recommend and back these loans, are tied to the success of the companies. If this policy was enacted, not one of these loans would ever be made; just as it should be. In a society that has adopted capitalism, private investors risk their own money on the success or failure of the company; they have a personal stake in the decision making process and will apply the highest level of scrutiny to their decision.
In our article, Solyndra Green, dated last September, we made a proposal for revising the incentives for developing green technologies for the country. If alternative energy sources are so important to our country, then turn loose the greatest force imaginable; let innovation fueled by profits lead the way. If you don’t want to invest 5 minutes reading the whole article, here is the basis of our proposal: remove all capital gains and corporate taxes from the earnings of any company that can develop and market workable alternate technologies. This tax advantage will apply also to the investors that made the innovation possible.
The Left will scream about the loss of tax revenue and how unfair it for millionaires and billionaires to get preferential treatment, but I have been told that the loss in tax revenues would be less than the loss from failed loan decisions. Even if there was no financial savings from our plan, the innovated drive, fueled by tax free profits, would successfully expand our energy resources and solutions without the taxpayer ever being at risk of a loss.
Let loose the giant, feed it with profits, and let it risk failure; but get out of its way while it finds a solution.
Wind Energy—-The Electrical grid is forced to buy the electric.
Chevy Volt—-really needs the government to force people to buy one.
Green Energy Government needs to help fund the projects to get started, subsidize it to keep it going and give incentives for the end user to buy it or force end users into buying the energy.