Why the Bankruptcy of Suntech Matters

MIT Technology Today ^ | 21 Mar 2013 | Kevin Bullis

[docbnj]

The Chinese government helped finance a massive expansion of the solar industry, helping to create a glut of solar panels—and leading to rapidly reducing prices for solar. But now it has let the main subsidiary of its most prominent solar panel manufacturer, Suntech Power, go bankrupt.

That could be a good sign for the solar industry and for innovation.

[docbnj]

Author supposes that the failure of Suntech is good for the future of solar energy, because it will enable the surviving companies to charge more, make money, stay alive, and prepare for the solar future. The economic theory is somewhat shaky, because if all the big companies have failed, and solar prices rise, how will this help solar to catch on? It looks more to me as if the Chicoms, like good capitalists, are letting drop a losing game.

The economic lesson is simple: if a technology needs constant subsidies, it means that it cannot compete. Or if it needs to be forced on people, same thing: it means that it really is not viable (like ethanol for adulterating gasoline).

[catnipman]

Only a Commie fool like a socialist Democrat could believe in claptrap like he wrote. I saw a post on his article that said the following:

“I’m confused. I thought the big promise of solar for the future is that it would continue to get CHEAPER. More affordable, so that MORE people could AFFORD it.

And yet you are saying that making solar MORE expensive is a GOOD thing? That prices need to be driven UP for solar to be successful. Could you please explain why making solar power MORE expensive is a good thing? And if making it more expensive is good, then is even more expensive than that even better?”

[iopscusa]

Another example from the FedReserve’s corrupt MIT School of Economics, home of Helicopter Ben Bernake and a vast reservoir of deadhead Keynesian’s!