Friday, March 13, 2015

The solar energy mistake America must avoid

The solar energy mistake America must avoid - Watchdog.org:
"Despite billions of dollars in subsidies and tax incentives, solar energy still accounts for just 0.6 percent of total electrical output in the United States, reports the Taxpayer Protection Alliance. Touted as “as a potential solution to address both environmental concerns and the need for greater domestic energy independence,” solar energy is rather both an illustration of crony capitalism and the broken window fallacy.
...In other words, government authorities deemed solar (and wind) worthy of money they wouldn’t have gotten otherwise.
 Indeed, when a financial corporation believes a loan will be paid back with interest, it will give the loan.
It’s business 101.
But when the government guarantees the loan, the person getting the money incurs virtually no risk should he or she be unable to pay back.
...In addition to wasting taxpayers’ money in these endeavors, the Obama administration has also shown, once more, that government cannot create jobs, nor wealth.
...With the solar nightmare, taxpayers had to cough up over $150 billion in subsidies between 2009 and 2014, in addition to more than $9 billion in various preferential treatments.
...The researchers estimated that every green job created destroyed 2.2 jobs elsewhere (or 4:9 to use whole numbers).
Proportionally for the U.S., this would result in the destruction of as many as 11 million jobs.
And the green jobs that were “created” in Spain came with a hefty price tag of at least 571,000 € (over $618,000). 
Finally, in order to pay back the feed-in tariffs–a subsidy allowing more expensive energy like solar to be produced–electricity rates would have to increase 31 percent.
...Will Americans make the same mistake the Spanish made?"

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