The Wind Turbine Industry about to go the Way of Solar Panel Manufacturers like Solyndra

Posted by PITHOCRATES - April 7th, 2012

Week in Review

Solyndra failed because of the Chinese.  Solyndra was working on a tubular technology to avoid using a silicon-based flat panel design.  At the time of product launch silicon was a costly commodity giving Solyndra a cost advantage.  And that cost advantage lasted until the Chinese brought so much silicon to market that the price for silicon imploded.  As did the price of flat-panel solar panels.  Which the Chinese also flooded the market with.  Good for people wanting to install solar panels.  Bad for people wanting to manufacture solar panels.  And now it’s happening with wind turbines (see Wind power market to lose puff this year by Liu Yiyu posted 4/5/2012 on China Daily USA).

China’s wind market bubble will deflate as the industry enters the worst year in its history, said the Spanish wind turbine maker Gamesa.

“The first half of 2012 is the worst time in the last four years, triggering a faster industry consolidation,” said Jorge Calvet, chairman of the company…

China’s wind industry has excessive capacity, going from 10 to 12 manufacturers in 2005 to more than 85 in 2011, according to Calvet.

Jobs of the future?  I think not.  Installing them, perhaps.  But this technology won’t do a thing for our manufacturing base.  What President Obama was going to revitalize with the technology of the future.  Green technology.  Smart technology.  Instead of those high-paying jobs of the past in the oil industry.  Which, incidentally, is something the Chinese can’t take away from us.  Only our president can.  By pursuing his jobs of the future.  Those manufacturing jobs the Chinese are taking away from us left and right.

Perhaps it would be better to pursue those jobs of the past.  There is a demand for fossil fuels.  We have fossil fuels buried within our American borders.  Which means only Americans can bring these fossil fuels to market.  And build and maintain the infrastructure that bring these fossil fuels to market.  All of those good, high-paying, benefit-laden jobs of the past.  In other words, the jobs people want.  The kind that don’t disappear when the Chinese ramp up protection.  The kind that will improve the employment picture.  Bring the cost of gasoline down.  And make America more energy independent.  All good things for the American people.  And things we should do for the American people.  Especially when it’s your job to look out for the American people.

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Obama Favors Protectionism to Save Manufacturing Jobs that Employ Few while Increasing Costs for Consumers Everywhere

Posted by PITHOCRATES - January 28th, 2012

Week in Review

In full campaign mode, Obama seeks the support of unions in the manufacturing industry (see Why Manufacturing Can’t Solve The Jobs Problem by Roya Wolverson posted 1/27/2012 on Time Business).

Among other things, Obama’s State of the Union speech Tuesday drove home the idea that U.S. industries need more protection. “Over a thousand Americans are working today because we stopped a surge in Chinese tires,” he said in his speech. That’s all fine and good if your goal is to hold on to U.S. manufacturing jobs. But it’s not going to solve the country’s overall unemployment problem. And in the end, it may cost the American consumer more than those jobs are worth.

For one thing, raising trade barriers on imported goods like tires makes tire-buying more expensive for American consumers, which, as Matthew Yglesias points out, only undermines those consumers’ ability to spend elsewhere. It also provokes countries like China to raise trade barriers on U.S. goods, which makes the job of increasing U.S. exports and export-related jobs even harder. Even if protections did save some manufacturing jobs, they wouldn’t be enough to move the needle on unemployment. It’s worth remembering that only 11% of U.S. jobs come from manufacturing, thanks to globalization, which has taken jobs abroad to lower-wage countries, and technological advances that have increased worker productivity. And that percentage has been declining steadily for several decades.

…And since we can’t reverse that process, the biggest gains in the job market can’t come from greater protections, but instead from gains in technology. Standard Chartered’s Gerald Lyons made the point today that, despite the enduring public perception that technology kills jobs, for every one job technology destroys, it creates 2.1 other jobs. Thus, instead of clinging to our past by supporting unproductive industries and erecting trade barriers, the U.S. has to find “the types of jobs that are fit for this country’s future,” argues Diamond.

Once upon a time the whale oil business was booming.  And a lot of people where employed in the whaling industry.  Until John D. Rockefeller came along.  Who created Standard Oil.  Introduced Americans to kerosene.  And put the whale oil business out of business.  Creating far more jobs in the petroleum exploration and refining business than the whale oil business ever did.  Now if President Obama were in office during this time he would have placed a tax on kerosene to protect those whale oil business jobs.  Because although he may talk about the jobs of the future, he wants to protect the jobs of the past.  Especially if they are protected by a strong union.

When only 11% of U.S. jobs are  in manufacturing, this protection of the jobs of the past is also very costly.  Because to save 11% of jobs in the economy he will raise prices on everything in the economy.  Meaning 100% will pay a surtax so the 11% can keep these jobs of the past.  So to sustain a little economic activity he will kill a lot of economic activity.  Which doesn’t make sense.  But it will protect union jobs.  And sustain contributions to Democrat coffers.  Which is the whole point of saving these jobs of the past.

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