Solyndra, Solar Dreams, Bankruptcy and More Government Waste.
How did our federal government grant Solyndra $535 million in Department of Energy loan dollars in support of green energy – a laudable endeavor – and the company go bankrupt and lay off 1,100 “green” jobs in two years (most startups last almost two years)? Well, maybe we should consider why the U.S. federal government guaranteed Solyndra hundreds ofmillions of dollars in loans when they were already closing one of their facilities and consolidating. That is not a good example of a growth business creating jobs and expanding. Where was the due diligence from the U.S. government (were they even qualified to do it) or was this a Washington “Wink and Nod”?
Forget the fact that a million dollars is something that many small US companies could use right now in this muddle through economy. The fact is that there were other companies that were stronger in the solar panel industry that may have been better suited to receive the DOE loans with a higher probability of success. Also, that money could have conservatively built, with less risk, more jobs in industries from which 80% of our energy comes from in the form of coal, natural gas, hydro, and nuclear power. Such an infusion into the existing energy sectors and infrastructure would have long term positive effects by lowering prices for business and consumers.
Furthermore, the U.S. Government could have given $1 million each to 535 companies all over the country and generated more jobs and more GDP with a significantly decreased rate of failure (maybe even some SUCCESS!) instead of the total loss of $535 million. The government could have gone a different direction and funded $5 million in matching dollar funding for 107 small venture capital firms that would have funded more than 1 billion to small business with investors that are seasoned at small company growth and that have “skin in the game”. This is another example of Government spending gone wild, with people who have not built businesses handing out our tax dollars. Now Washington will have to lay off eleven government paid bureaucrats to create the 1100 jobs that were temporarily rented!
For more on this Blog – see http://www.politico.com/news/stories/0811/62423.html