Actually a company going out of business says nothing about economic growth. In a growth environment companies go out of business all the time. What matters is how many new companies are founded at the same time. The foundation that funds my research into developmental economics has found that firm creation, rather than firm destruction, is the most reliable and consistent metric by which one can measure economic health.
In that light, the very low rate of new firm creation under Obama is far more worrying than a promising company going out of business, which is just normal economic activity.
It says a lot about the President’s priorities, ability to create jobs and influence on the renewable energy industry—all of which are fucked.
It’s also worth noting the $535 million loan guarantee, which we will now be footing, would be enough to cover the Federal government’s contributions to NPR for 122 years (at current levels). Instead, we just have 1100 people out of a job.
I think it represents a lot of things.
This loan guarantee would probably have been a wise bet if a cap and trade bill was passed (maybe not).
like Muppetpants, the Administration’s energy policy is a poor one that’s designed to make jobs through stimulus. An energy policy should be designed around the most efficient use of resources to power the nation.
To his supporters, loan guarantees to small businesses to make solar panels or wind turbines are smart bets, but without an adequate policy and infrastructure you will just make a bunch of stuff that won’t sell and it will sit in a warehouse until it can be used, if at all. We also have this big problem called China that makes solar panels cheaper.
The administration has been slow to propose high power line construction- because you have to build it through places that people don’t like and usually with the help of local government. and the price tag is a lot, $1.5M a mile or so, especially through places where wind turbines are going to be really effective. $500M for manufacturers is sexier than $500M for high power lines through the Blue Ridge Mountains.
The Administration has also been all about making the grid ‘smart’ (which is going to be necessary to shift power from region to region making wind and solar cost effective) but there has been little movement on it.
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- notthebarefootcontessa said: shit happens in the free market.