Posted tagged ‘Solyndra’

Government Investment? Or Government Waste?

December 20, 2012

When you here the warning, “don’t try this at home”, it means leave it to the experts because you might get hurt. This has never been more true than when it comes to Government “investment”, except the difference is the politician, who “try’s this at home” profits politically, and the taxpayers are the people who get hurt. The politician making the investment decisions doesn’t suffer any of the consequences for his failures. If you could “invest” money that wasn’t your own, and do it with no repercussions for failure, and your whole life was incentivized and constrained by politics, wouldn’t you invest in something that produces (more…)

What Comes First, Production Or Consumption.

November 20, 2012
Kindof a visual pun that I've illustrated...

Kindof a visual pun. Which came first?  (Photo credit: Wikipedia)

What drives the economy, supply of or demand for goods and services. Does the economy grow because we consume more or can we consume more because the economy grows. This article by Mark Skousen title, “Consumer Spending Doesn’t Drive The Economy, Investment Does”,   explains the public’s perceived chicken or egg conundrum about production or consumption. This is not a puzzling question at all, the answer is very logical and easy to understand. Consumption happens at the end of the production process. You can’t consume something that does not yet exist, and the only way a consumer’s good can exist is if someone produces it. Production is the act of creating wealth, while consumption is (more…)

Green Energy Proving Venture Capitalists are Smarter Than Government Bureaucrats.

September 30, 2012
President Barack Obama, with Assembly Manager ...

President Barack Obama, with Assembly Manager Teri Quigley, drives a new Chevy Volt, during his tour of the General Motors Auto Plant in Hamtramck, Mich., July 30, 2010. (Official White House Photo by Pete Souza) (Photo credit: Wikipedia)

Robert Bradley Jr. in an article titled Electric Car Verdict: Another Government Subsidized Bust, at masterresource.org writes, “When government tries to pick losers and winners, it typically picks losers. Why? Because in the free market consumers pick winners to leave the losers to Government.”

Another reason Government can’t out perform the free market is because it doesn’t have a tenth of the knowledge that exists in the free market. Also, in the market, the individual who risks knows he takes the loss if he is wrong. When the Government picks a loser (more…)