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  • At Solyndra, More Jobs Lost—and Even More Jobs Lost

    Documents obtained by The Bay Citizen under the Freedom of Information Act revealed that the Solyndra bankruptcy resulted in 1,861 people losing their jobs—over 700 more than the defunct solar company previously reported. In reality, the job loss count is even higher than that. What hasn’t been counted are the jobs that could have been created with that half-billion-dollar government subsidy.

    The subsidized Solyndra received one of the first stimulus loan guarantees, a $535 million loan. That money did not fall straight from the sky to Solyndra’s headquarters. For the Department of Energy to award the handout, the federal government had to borrow that money or raise taxes at a later date. Either way, the government is extracting the money from U.S. taxpayers. It gets back to that quirky saying economists love to use all the time: There is no free lunch. Government “investments” have a cost.

    So with the government dropping half a billion in taxpayer money on Solyndra, there’s the direct loss of nearly 1,900 employees, and there’s the opportunity cost of what the private sector could have done with the labor and capital diverted to Solyndra. When Gabriel Calzada of King Juan Carlos University calculated the government expenditures used to subsidize green jobs in Spain, he found that same amount of expenditure could have been used to support more private-sector jobs. He calculated for every green job created by the government, 2.2. jobs were lost in the private sector.

    If an energy source is not economically competitive, then the government should not artificially prop it up to create a market that wouldn’t exist without the subsidy. Subsidizing inefficient technologies is an economic drain, not an economic stimulator. Even with the subsidy, Solyndra could not stave off bankruptcy and, sadly, had to lay off 1,900 employees. But America lost much more than that.

    Posted in Energy, Featured [slideshow_deploy]

    6 Responses to At Solyndra, More Jobs Lost—and Even More Jobs Lost

    1. Jerry Smith says:

      So it turns out that one of Obama's better known boondoggles is worse than we first thought. The only reason it is "better known" is the alternative media. My hometown paper would never publish the truth since they depend on the AP and the NY Times for their stories and we all know where they stand! Does anyone think Brian Williams will report this on the NBC nightly news?

    2. Norma says:

      Brian Williams would choke to death on the words that it would take to tell the truth!!!!! As with all of the lamestream media, they sensor what their listeners hear pretending that if they don't acknowledge a story, it just doesn't exist!!!! I am waiting for the day when the media actually does its job which is to report the news – good, bad or indifferent – and let the chips fall where they may! I will say I am NOT holding my breath!!!!!

    3. Jeanne Stotler says:

      I long for the "Good Old days" when we had real reporters that actually told you the news without sugar coating it and twisting it around just to make a politician look good. I am a firm believerthat if you choose to be in this proffession you should report truthfully regardless your political beliefs, letthe chips fall where hey may.

    4. Mutantone says:

      perhaps it was not designed to create jobs at all but to wash money for Obama's reelection funds? Just look at how the Executives of Solyndra got paid and the Tax payers were dropped down the list of payees. The Executives all had ties to raising money for Obama's first run I am sure that the Executives made out very well and that money from the Tax payers is making the rounds back into the campaign funds! Am I wrong to think that is more than a coincident?

    5. Bobbie says:

      isn't it really losing a million but focus Presidential credit on the 50,000 saved everywhere else? And people really want to vote for this dangerous man? Obama's policies he wants passed. Matters only got worse with his unconstitutional intervention and dictating ultimatums. He refuses to hold his pets equally accountable to their own, dumping their consequences on people that have nothing to do with it.

      In housing also. Nobody deserves a house that isn't going to carry out the responsibilities it takes to have one. Doesn't matter how "tricky" it was. You sign it, you own it! The people "tricked" take the "tricksters" to the better business bureau and other various sources that keeps Mr. federal Government, OUT so the signer learns his responsibilities to society when he participates in purchasing residence that effects the economy! The President's vision isn't for a better American economy. Or a better people. All his ideas are for Obama and those Americans he works for. Conflicts of America's good will. The clowns of corruption have got to go, yesterday!!

    6. John Christopher says:

      We have all heard "hope and change" my only desire is to change and hope we can rebuild the damage. France 75% income tax! The TSA is going to be busy touching French "junk"

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