The nearly $1 trillion stimulus bill that President Obama pushed after taking office was supposed to revive the economy, but it was really all about installing the Left’s vision to transform America.
A major part of the transformation is an attempt to defy the laws of economics and have politically-connected campaign donors and Washington central planners decide what kind of energy the country should use. The stimulus was packed with giveaways that allowed dozens of so-called “green” energy projects to sap taxpayer funds to advance Obama’s vision. However, they could only ignore market economics for so long and now the projects are starting to collapse.
Who’s left holding the bill? Taxpayers.
First, the Obama administration poured billions of taxpayer dollars into favored green energy companies -- many with ties to big donors. Government picked winners and losers. Predictably, this government cronyism failed and companies like Solyndra went bankrupt.
In late 2010, the Obama Administration asked Solyndra to hold off announcing massive worker layoffs until after the November 2010 elections. Those 1,100 workers had no idea that they would be fired.
Today 90% of those workers remain unemployed.
President Obama spent $535 million of taxpayer stimulus money to prop up Solyndra, a solar panel company connected to campaign donors. Even though Department of Energy and White House staffers warned that the company's business model would never work, the loan was rushed out the door anyway. Now that Solyndra has gone belly up, taxpayers are left holding the bill.
When government steps in to pick winners and losers based on politics it opens the door to even more cronyism. As we've already seen with Solyndra, government betting taxpayer dollars on unproven technologies is a very bad deal. A restrained federal government that doesn't have taxpayer cash to spread around is essential to stopping the cronyism that's ruining our markets.