Free Markets, Free People
Unfortunately these stories are all too common now:
As U.S. Senate Majority Leader Harry Reid prepares to host his fifth annual National Clean Energy Summit on Aug. 7, a Nevada Journal examination of Nevada’s renewable energy sector shows that over $1.3 billion in federal funds funneled into geothermal, solar and wind projects since 2009 has yielded and is projected to yield just 288 permanent, full-time jobs.
That’s an initial cost of over $4.6 million per job.
So as the Senator from Nevada tries today to justify his profligacy in his home state at your expense via this sham “National Clean Energy Summit”, you can be assured of one thing – No one in government will be held accountable for this, at least not legally.
The performance of many of these “sons of cronyism” is as dismal as the cost per job is outrageous.
Auditors for Nevada Geothermal Power, a federally subsidized green-energy firm in Nevada, are raising questions about whether that firm is going to fail.
As of last October, Nevada Geothermal Power had 22 employees in Nevada, and, according to the New York Times, had received $145 million in federal subsidies — composed of a loan guarantee of nearly $79 million for its Blue Mountain geothermal project and at least $66 million in grants to the company itself.
The Times called the company a “politically connected clean energy start-up that has relied heavily on an Obama administration loan guarantee,” and said it “… is now facing financial turmoil.”
Today, three quarters later, the latest company audit again questions the “company’s ability to continue as a going concern.”
The firm’s survival, wrote auditors on March 31, will depend “on its available cash and its ability to continue to raise funds….”
And that’s not the only example:
The most recent “clean energy” company failure in Nevada occurred three weeks ago when Amonix, a North Las Vegas solar manufacturing plant that had received more than $20 million in federal tax credits and grants, closed after only 14 months of operation.
Hailed upon its opening by Sen. Reid, U.S. Rep. Shelley Berkley and Gov. Brian Sandoval, the 214,000-square-foot Amonix facility had, at its height, employed some 700 individuals. In 2010, even President Barack Obama praised the Amonix plant, saying the “stimulus” tax credits it received had made an “extraordinary impact.”
Today, the company is bankrupt.
The result is something out of an Orwellian nightmare and the ultimate victim? The people of Nevada:
In Nevada, consumer energy rates climb higher and higher. According to the Energy Information Administration (EIA), Nevada now has the highest residential electricity rates in the Intermountain West region.
Moreover, so long as present government policies — such as the state’s Renewable Portfolio Standard — remain in place, rates will continue upward.
While Sen. Reid helped Salazar fast-track government-approved renewable projects in 2009, he also used his influence as Senate majority leader to delay and ultimately kill a coal power plant planned for White Pine County.
Coal-powered plants produce electricity at a much lower price than do renewable-powered plants, according to the EIA and NV Energy.
Currently, NV Energy pays 3 to 5 cents per kilowatt-hour for natural gas and coal-fueled power, 8 to 10 cents per kWh for geothermal energy and for wind energy and 11 to 13 cents per kWh for solar photovoltaic energy. Wind and solar photovoltaic energy also require backup power for “intermittency issues.”
The higher costs from renewable-energy production are passed on to Nevada ratepayers in the form of residential electricity rates that are 26 percent higher than those of other Intermountain West states and 7 percent higher than the national average, says the EIA.
Obviously cronyism isn’t just limited to Democrats. It’s just their turn in the barrel because their cronyism has been such a spectacular disaster here lately.
What none of our elected officials who regularly indulge in cronyism seem to understand is that they call certain things economic principles or economic laws for a reason – they aren’t something you can ignore and expect, for some reason, to be successful in ignoring them.
In this case Richard Epstein of the Hoover Institute again states why what is again being attempted, and failing, is a lesson that the government seems never to learn:
These subsidies programs have failed for mundane but compelling reasons. No government has ever succeeded in trying to shape industrial policy with state subsidies, for the simple reason that it has neither the knowledge nor the incentives to pick which fields make sense to invest in or which firms in these fields have latched onto a viable technology.
No government should, of course, ban investments in solar and wind energy, but the prudent strategy is to let these investments be made by venture capitalists and other entrepreneurs who might actually know what they are doing. And currently, the smart money seems to be steering clear of renewable energy technologies.
And yet we continue to see these sorts of attempts by government to do something it is entirely unequipped (and unneeded) to do.
You know, act like it has better information than … markets. It never has, it never will. The results are just about as predictable as sunrise.
Failure. In some cases epic failure.
In the case of Nevada, government intrusion, at the cost of $1.3 billion of your dollars, has created a whopping 288 jobs and managed to quadruple energy costs for the state’s residents.
And yes, I put that in the epic failure column – but then we’re talking Harry Reid here, so one should be used to epic failure when his name is mentioned.
Sharon Angle might not be anyone’s choice for Senator if she were running against anyone else, but apparently when the opponent is the much loved Senate Majority Leader Harry Reid, she’ll do just fine:
In Reno’s Washoe County and Las Vegas’s Clark County, Republican turnout was disproportionately high over the first three voting days, according to local election officials. The two counties together make up 86 percent of the state’s voter population.
Some 47 percent of early voters in the bellwether Washoe County so far have been Republicans, while 40 percent have been Democrats, according to the Washoe County Registrar. Nearly 11,000 people had voted in Washoe over the first three days of early voting, which began Saturday.
Voter registration in the county is evenly split, 39 percent to 39 percent. The disproportionate turnout is a concrete indication of the Republican enthusiasm that is expected to portend a nationwide GOP wave.
Early voting is often an indicator of how a race will go on election day as it tends to demonstrate which side has, as the article notes, the most enthusiasm about the election. Right now the numbers are pointing to a decided advantage for the GOP.
Well, you say, that’s a heavily Republican county. What about turnout in a heavily Democratic one? The news is pretty much the same:
In Clark County, which is heavily Democratic, more Democrats than Republicans have voted, but Republicans are outperforming their share of the electorate.
Out of the nearly 47,000 votes cast in Clark County, 46 percent were Democrats, 39 percent Republicans, according to the Clark County Election Department. But while Democrats make up 46 percent of the county’s registered voters, Republicans constitute just 33 percent.
Harry Reid, the best argument going for not using seniority as a basis for picking your leaders, may end up being a statistic. Perhaps his loss will push unemployment back up over 10%. It would be a fitting end for a politician who has done much to "lead" us into the mess we now suffer.
I know its early and yes, I know he could eek out a win, but I’m just feeling it in my bones. Angle will be a junior Senator with little power and someone Nevadans can get rid of in 6 years if she turns out like I think she will. But I think they’re realizing that in relative terms, she’s a small price to pay for getting rid of Harry Reid.
I say, “Amen” to that.