The Solution to the Bungling Bureaucracy that gave us Solyndra is to add more Bureaucracy

Posted by PITHOCRATES - February 11th, 2012

Week in Review

Big Government has failed.  So to fix Big Government those in government say the solution is to make government bigger (see Energy Loan Oversight Is Needed, Audit Finds by JOHN M. BRODER posted 2/10/2012 on The New York Times).

The Department of Energy’s loan guarantee program for alternative energy projects, which produced the ill-fated loan to the solar panel maker Solyndra, needs more rigorous financial oversight and stricter performance standards for recipients to reduce the chance of future defaults, according to an audit conducted by the White House and released Friday.

So the way to fix this bureaucratic mess is to add more bureaucracy.  Grow the size of government.  Spend more taxpayer money to provide more oversight on worthless taxpayer-financed investments.  Interesting.  Only in government.  Where they fix failures by doing even more of the same.

But it doesn’t end with Solyndra.

Solyndra and Beacon are not the only loan recipients to find themselves in trouble. Fisker Automotive, an electric car maker in Irvine, Calif., has missed some milestones that were written into its loan agreement, so the Energy Department has cut off credit. As a result, Fisker has stopped work on the conversion of an old General Motors factory in Wilmington, Del., that is supposed to produce an electric sedan, and laid off more than 60 employees and contractors.

Spokesmen for Fisker and the Energy Department both said that the terms of the loan were confidential and they would not say precisely what milestones were missed, but Roger Ormisher, a spokesman for the company, said, “We admitted very openly we were late to market with the Karma,” the company’s $102,000 sporty sedan. Fifteen hundred have been built and “a few hundred” sold, he said. Progress was slowed by a safety recall.

It wasn’t just an electric sedan.  But a sporty sedan.  And a fairly luxurious one at that coming in at $102,000.  But will people buy it?  Probably not.  You see, the biggest problem electric cars have that prevents the masses from buying them is range.  They just don’t go far on a single charge.  Especially if you use the headlights or heater.  And you can’t recharge them quickly.  Which means if you run out of charge you can’t have a friend drive out a gas can full of charge to pour into the tank.  You run out of charge on the road and you’re paying for a tow home. 

And making any car ‘sporty’ just compounds the problem.  Because if you’re accelerating quickly you drain the battery faster.  And this is the car the government is subsidizing.  Of course this is going to be another Solyndra.  No one’s going to buy this car.  Unless the government subsidizes the bejesus out of it to bring that $102,000 down to something closer to $15,000.  Where people may put up with the inconvenience of driving nothing but one short trip a day.  At least, until they get their electric bill.  Because electricity isn’t free.  And if you’re charging up a battery than can make are car zoom sportily along, it’s going to have some big batteries.  And long charge times.  Making big electric bills.

If they are going to add oversight they need to add it at the level where they decide to back these losers.  Before the money goes out.  Or, better yet, they should just stop investing in these losers.  If a company can’t get investment capital there’s a reason.  They don’t have a good idea.  At least, not one anyone will risk their own money on.

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