Crony Capitalism: Solyndra constrasts to Multistack

US News says Solyndra Is Symptomatic of a Larger Obama Energy Problem

There are lots of people in Washington who have identified Solyndra as part of a regime based on “crony capitalism” that has become the hallmark of the current administration. If that were all there was to it, things would be reasonably simple to sort out. In fact what happened at this one California-based company is only a symptom of a larger problem, one that threatens to grow over the next year and which reflects a fundamental flaw in the Obama energy policy: It is not based on anything reasonable.

The catalog of phenomena that lead to the ‘crony capitalism’ conclusion is summarized. It is the contrast with another ‘green’ entrepreneurial effort that provides emphasis to just how irrational the Solyandra type effort really is.

“Most of the innovation in this country comes from smaller, nimble companies like ours,” Multistack’s Mark Platt told me. “Innovation is what will keep us competitive on the world economic stage, create the jobs we need, and gives hope to the coming generations that America’s future is as bright as ever. The entrepreneurial spirit is America.” … What Platt and Multistack have accomplished, without government subsides and loan guarantees, stands in stark contrast to the failure that is Solyndra. More than that, it may be a model for things moving forward.

As Professor Walter Williams points out, the entrepreneurial capitalist depends upon many millions who put their own money into their decisions. Solyndra is a government putting other people’s money into its decision and that decision was based on ideological fantasies quite separated from reality.

Comments are closed.