Here is just one more example of the ineptitude of government.
Remember Fisker? The green energy car company that got a $500 million loan guarantee to create 125 jobs in Michigan?
Just like Solyndra, Fisker couldn’t make a go of their project.
First they determined that they couldn’t be profitable in Michigan, even after our brilliant government bureaucrats issued $192 million in actual dollars to the company. So they moved production to Finland. So long to the American jobs!
Now the bureaucrats have determined that they must exit the loan. They have sold the $192 million dollar loan to a Chinese company for the grand sum of $25 million. Effectively giving the Chinese $167 million!
The net is not quite that bad. Somehow the bureaucrats did recover another $28 million, leaving taxpayers with a loss of only $139 million.
Just how stupid can the government be?
This is another example of the ‘free market’ being completely destroyed by government action. We’ll never know what a ‘free market’ could have done with that $139 million. Instead of being used to innovate and improve, creating jobs, this money was totally wasted by government bureaucrats.
Will we ever learn that government cannot create ‘productive’ jobs that lead to economic growth.
Actually, they don’t claim to create productive jobs, they just claim to create jobs that are supposed to add money for ‘consumption’. What they don’t tell anyone is that the jobs they create are simply created by taking money out of the ‘private’ sector and transferring it to government approved jobs.
It’s just another example of bureaucratic egotism. The bureaucrats think they know better than anyone else what jobs are desirable and how our wealth should be spent.
In truth, wealth is created by increased productivity. That productivity is created in numerous ways, but one key is by employing capital in ways that enhance our ability to produce things. That capital comes from savings. The willingness for consumers to delay a purchase in the hope of being able to purchase something more desirable in the future. (Some may argue that the Fed can inject money into the private sector, as they have been doing in massive amounts for several years. In fact any money created by the Fed is simply stolen from the taxpayers in the form of inflation, which is nothing more than a hidden tax.)
When the government spends (or more frequently, wastes) our money that decision is no longer in the hands of the consumer.
While the free market is driven by the consumer, government interference in that market can only lead to miss-allocation of funds and a reduction in innovation which can only lead to economic stagnation and a likely economic decline with its attendant unemployment and lower standard of living.
A system that removes the consumers choice or limits that choice will ultimately destroy the free market and lead to economic failure.