TBL: Green Energy and Socialism
Wednesday, October 24, 2012 3:26 PM

The President recently spoke before a $25,000 a plate fundraiser in Los Angeles, assuring his donors that green energy is not part of a "socialist plot".

So what kind of plot is it Mr. President?

“On energy, I’m big on oil and gas, and developing clean coal technology, but I also believe that if we’re ever going to have control of our energy future, then we’ve got to invest in solar and wind and biofuels, and that it does make sense for us to double our fuel-efficiency standards on cars,” the president told an audience that included noted actor George Clooney.

“And that’s not a socialist plot for us to reduce our energy usage,” the president said to laughter, according to the transcript. “It’s the smart thing to do. It’s right for our national energy. It’s right for our economy. It’s right for the environment."

Let's see. Socialism would dictate that everything would be government run, right? Job creation through government intervention is one aspect of socialism. The government, not businesses creating jobs. Didn't we try this already though?

Section 1603 of the American Recovery and Reinvestment Act (i.e. the stimulus package)  offered: “renewable energy project developers a one-time cash payment” to reduce the need for green energy companies “to secure tax equity partners” and also help them to achieve  “ ‘the near term goal of creating and retaining jobs’ in the renewable energy sector.” 

How many jobs did this influx of cash create for Americans seeking work in clean energy? 


So we spent $9.8 million dollars a job for solar and wind projects, about 23,000 to be exact.  This includes Solyndra, I'm sure you remember them. That's the place where the President touted clean energy, and after they shut their doors forever they kicked nearly 1,900 people out of work with them. 

Sounds like it was worth it. 

I guess another degree of socialism would be that certain industries are favored over others, and whoever is in power determines those.

Let's look at the 1,200 coal mining jobs that have been eliminated due to Obama administration regulations. This goes back to a promise that he would "bankrupt" any group who tries to build a coal powered plant. 

The government controlling where the money goes and what groups are favored and which ones get the boot? Doesn't sound like socialism to me.

But it doesn't work.  We are seeing that. How about the $150 million that Compact Power received to produce Volt batteries? They are having to furlough workers, placing them on three week shifts out of every month. What about the michigan assembly plant that makes the Volt, having to idle their work force for four weeks for the second time this  year due to decreased demand for the vehicle. 

And the car itself? Well, let's just say that the profit margin on the Volt is about as far left as the president's ideologies. Reuter's is estimating that Chevy loses $49,000 on every Volt sold, which is about $10,000 more than the sale price for the car itself.

The Bottom Line is this: Green energy sounds great, but giant influxes of cash will not kill the coal and oil giants. And letting the government pick and choose the winners and losers of the energy wars is a socialist move at its very core. We are years away from getting rid of the gas engine, and the government isn't going to help us get there any faster.


Twitter: @afrbottomline