Who is to Blame for Solyndra's Bankruptcy? Oh, You Won't Believe This One…

| September 19, 2011 | 2 Replies

I’m pretty sure that if someone invented a Gall-O-Meter and pointed it toward Washington, the resulting overload explosion would leave a Chicxulub-sized crater. The Department of Labor, headed by anti-capitalist Hilda Solis, has launched its own investigation into SolyndraScam. It’s not looking toward the White House or the “green jobs” loan program or the board of Solyndra, though. It has its eyes on a different scapegoat entirely.

The inquiry was set in motion in response to a petition filed by Alameda County under the little-known Trade Adjustment Assistance Program, which provides for additional benefits to American workers when their jobs are lost to foreign trade. In the petition, Patti Castro, the interim director of Alameda County’s Workforce Investment Board, said that “Solyndra and other U.S. solar industry manufacturers have been affected by a worldwide plunge in solar cell prices, based in part on huge subsidies Chinese solar manufacturers receive from their government.”

According to the Department of Energy, solar panel prices have dropped 42 percent since January, largely because of $30 billion in Chinese government subsidies to its solar sector. The United States share of the worldwide solar-panel market has fallen from a peak of 43 percent in 1995 to just 7 percent last year.

Take a moment and let that sink in. The Labor Department wants to blame Chinese government subsidies for sinking a company that, so far as we can tell, was propped up by American government subsidies. And it wasn’t just Solyndra that was getting big money from Washington. The entire solar energy industry received more than $1.1 billion in tax incentives and direct payments in 2010.

So, really, the administrations biggest complaint is that China played the big-government game better than we did. That’s no surprise. China is a fully socialist government with what amounts to a slave labor pool of billions while we still bitterly cling to freedom and capitalism.

Drat that Constitution.

 

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Category: The Economy and Your Money, Thinking About Energy

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