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Activist Group Claims Government Subsidized Green Energy Projects Are Worthwhile
Michigan Capitol Confidential ^ | 1/7/2013 | Tom Gantert

Posted on 01/15/2013 10:44:00 AM PST by MichCapCon

In a recent article in The Christian Science Monitor, two analysts from the Union of Concerned Scientists make the argument that President Obama’s investments in green technology were a good deal.

The Union of Concerned Scientists’ John Rogers, a senior energy analyst in the Climate and Energy Program, and David Friedman, the senior engineer in the Clean Vehicles Program, described the well-publicized bankruptcies of Solyndra and A123 Systems as “a few falling acorns” and call critics “Chicken Littles.”

President Obama’s green energy investments have received a lot of publicity in Michigan because four of the largest nine green companies to go bankrupt had Michigan ties.

The Heritage Foundation did an analysis of 19 bankrupt green energy companies that failed even though the government had promised financial assistance up to $2.6 billion.

Proponents of limited government say the Union of Concerned Scientists is missing the point about government investment in green companies.

“Whether the Obama Administration’s investments in clean technologies succeed or fail, the fundamental problem is that the federal government is risking taxpayer dollars to bet on companies in the first place,” said Heritage Foundation Spokeswoman Rachael Slobodien. “Regardless of their fate, the government should not be ‘investing’ in these technologies or companies, especially in the energy market where there is already ample demand and diverse supply. We should be equally infuriated about the successful companies. These are companies that have profitable products to offer and do not need taxpayer support. There is a phrase for subsidizing successful companies: corporate welfare.

"As Heritage’s Nick Loris has explained many times before, ‘Two kinds of companies seek subsidies: economically uncompetitive companies, which need the subsidy to survive, and potentially competitive companies, which use subsidies to pad their bottom lines. Neither case can be justified.’ “

Veronique de Rugy, senior research fellow at the Mercatus Center at George Mason University, said the Union of Concerned Scientists’ contention that the incentives are working because many companies are still operating is flawed.

“It’s not because the program is working. It’s because they are giving this money to large companies,” de Rugy said.

Well-established wind-farm owning corporations such as NRG ($145.5 million) and NextEra Energy ($955.5 million) received multi-millions in cash from the federal government, de Rugy wrote.

NRG had $27.2 billion in assets in 2012 and NextEra Energy had $60.3 billion in assets in 2012, according to Forbes.com.

“I’m sorry. These are big companies that could get capital without the help of the government,” de Rugy said. “That’s the real scandal.”


TOPICS: Business/Economy
KEYWORDS: energy; green

1 posted on 01/15/2013 10:44:11 AM PST by MichCapCon
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To: MichCapCon
"Worthwhile?"

Sure, to those being subsidized...

2 posted on 01/15/2013 10:47:13 AM PST by gov_bean_ counter (Hope and Change has become Attack and Obfuscate.)
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To: MichCapCon

Sure they do. Who pays their enormous salaries and subsidizes their lazy, science-free lives?


3 posted on 01/15/2013 10:48:17 AM PST by Cicero (Marcus Tullius)
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To: MichCapCon
Solyndra was given $500,000,000. One year to the day later there were locks on the doors and they were belly-up.

That makes absolutely no sense. It would take years to carry out a rational business plan to spend that much money.

The fact that it was gone in a year means it was nothing more than a transfer payment to Obama's accomplices.

4 posted on 01/15/2013 10:57:18 AM PST by E. Pluribus Unum (TYRANNY: When the people fear the politicians. LIBERTY: When the politicians fear the people.)
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To: MichCapCon

Correction Headline should read;

Gov Paid Activist Groups Claim Gov Paid Green Projects Worth Gov Payouts and increase in taxes...by Tom Ganert Michigan Confidential


5 posted on 01/15/2013 11:51:14 AM PST by mosesdapoet ("To punish a province let a professor rule it." Frederick The Great paraphrased)
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To: Springman; Sioux-san; 70th Division; JPG; PGalt; DuncanWaring; taildragger; epluribus_2; Chuck54; ..
They're not.

Most of Michigan is 'Poor' or 'Marginal' For Wind Energy

If anyone wants to be added to the Michigan Cap Con ping list, let me know.
6 posted on 01/15/2013 12:23:39 PM PST by cripplecreek (REMEMBER THE RIVER RAISIN!)
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