Sep
19
Oopsolyndra
Posted by: konrad | September 19, 2011 | Leave a Comment
Image courtesy of thegatewaypundit.com
If spending money on expensive things nobody wants was an olympic sport, the podium would most certainly be reserved for politicians.
Solyndra Inc. was a solar power company producing and selling rooftop panels. According to the company website, Solyndra’s unique cylindrical design “offers the benefit of light weight, low cost and the fastest, easiest installation of any solar technology.” While its innovative product may have caught the attention of politicians, consumers were evidently not as convinced as the company was in financial trouble. The latter, however, seemed not to matter much as “merit based” subsidies for “green energy” became the U.S government’s latest tactic to win the public. Despite warnings from a leading accounting firm about the shape of the company, Solyndra received $535 million in federal loan guarantees in September 2009 before shutting down two years later. This story shows how ineffective and damaging government subsidies can be. As was the case with cell phones, automobiles, and other revolutionary products, solar energy will flourish once it proves itself as a useful and financially viable option to consumers. At the moment, 90 million taxpayers can’t be too pleased.