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FRONT PAGE CONTRIBUTOR

The Non-Producers

'How could this happen? I was so careful. I picked the wrong play, the wrong director, the wrong cast. Where did I go right?'

Max Bialystock and Leo Bloom were pikers compared to the Government’s “Green Energy” schemes.

Bialystock and Bloom plotted to make millions with a guaranteed Broadway flop. Against all odds, Springtime for Hitler became a runaway hit, and The Producers went to jail.

But at least Mssrs. Bialystock and Bloom produced something of value – a hit musical.

Our Green Initiative produces flop after flop, but precious little energy. Instead of throwing the perpetrators in the hoosegow, we keep reelecting them.

Case #1, reported by John Hayward at Human Events: Solyndra Wants to Pay Six-Figure Employees Huge Bonuses

So whose sense of job security will be bolstered by these taxpayer-financed bonuses?

The proposed bonus recipients include nine equipment engineers, six general business and finance employees and up to two information technology workers.

The biggest bonus, for $50,000, would go to a Solyndra employee whose job title is listed as a senior director with a base salary of $206,499 per year. Two senior managers stand to receive bonuses of $30,000 and $32,500. [From the Washington Times.- Ed.]

Taxpayers were stiffed for a good $300 million of the money they poured into Solyndra, because late-arriving private investors – lured with promises of “senior debt” by an Administration desperate to keep this boondoggle from becoming a political nightmare – got repaid first. Now you’re going to get stiffed again so an employee in a useless company who makes over $200,000 a year can get his $50,000 bonus. Only three of the employees set to receive these bonuses make less than six figures.

Um, in this crappy economy, a regular paycheck is sufficient to keep most of us working diligently. So what if they leave? Are we going to throw good money after bad because a total debacle might turn into a cataclysm? I’ll take my chances.

On second thought, how ’bout we fire Steven Chu, and divide his paycheck up among the remaining Solyndra stalwarts. This mess has his fingerprints all over it.

Case #2, from The New York Times: Companies Face Fines for Not Using Non-Existent Biofuel

Congress, in its brilliance, mandated quotas for the use of cellulosic ethanol, which is made from stuff like corn cobs, switchgrass and wood chips. Theoretically. What’s the use of a quota without a penalty for not meeting it?

In one fell swoop, Congress can feel good about their support of Green Energy and increase Federal revenues without raising taxes!

WASHINGTON — When the companies that supply motor fuel close the books on 2011, they will pay about $6.8 million in penalties to the Treasury because they failed to mix a special type of biofuel into their gasoline and diesel as required by law.

But there was none to be had. Outside a handful of laboratories and workshops, the ingredient, cellulosic biofuel, does not exist.

In 2012, the oil companies expect to pay even higher penalties for failing to blend in the fuel, which is made from wood chips or the inedible parts of plants like corncobs. Refiners were required to blend 6.6 million gallons into gasoline and diesel in 2011 and face a quota of 8.65 million gallons this year. …

But Cathy Milbourn, an E.P.A. spokeswoman, said that her agency still believed that the 8.65-million-gallon quota for cellulosic ethanol for 2012 was “reasonably attainable.” By setting a quota, she added, “we avoid a situation where real cellulosic biofuel production exceeds the mandated volume,” which would weaken demand.

Wait. What?!

And Mascoma, a company partly owned by General Motors [a company 30% owned by the U.S. Government - Ed.], announced last month that it would get up to $80 million from the Energy Department to help build a plant in Kinross, Mich., that is supposed to make fuel alcohol from wood waste. Valero Energy, the oil company, and the State of Michigan are also providing funds.

With apologies to Mel Brooks, even he could not have concocted such wacky schemes. These policies are straight out of Alice in Wonderland.

Cross-posted at stevemaley.com.

COMMENTS

  • renny

    except a whole new Senate and new business-oriented Rep. in the White House, and then it will take years to untangle some of this nonsense, partly because the MSM is as invested in “green” as it is in MGW, and anything that opposes or wants change in those lefty icons brings out the knives and viral sarcasm.

    • ohiohistorian

      but it would take a Congress with some stones. They would have to pass a bill that effectively says “all laws passed since 1/1/2007 are null and void. All regulations published since 1/1/2007 are null and void.” It is the only way to get rid of all of this mess. Finessing the regulations will NOT work; there is too much insidious claptrap in the regulations.

      • edintexas

        The best we could expect from any Congress would be riders to appropriation bills prohibiting spending funds for a particular issue. Actually pass a bill rescinding regulations, or (heavens!) pass a bill which repealed the law completely – the chances of either are slim and none. Repeal would tend to indicate they might have made a mistake in passing the law in the first place. Can’t do that.

        Riders are easy. They only have an effect for 1 fiscal year, they leave the law unchanged and ready to be used in any future year, and they can be ignored with Presidential Signing Statements.

  • mustango

    “late-arriving private investors ? lured with promises of ?senior debt? by an Administration desperate to keep this boondoggle from becoming a political nightmare ? got repaid first.”

    And Obama DIDN’T go out and give a speech about how greedy they were and how he “doesn’t stand with them”??

    • funwithknives

      that virtually all of Solyndra’s investors got their’s first, but G M bondholders got zilch/squat/NaDa. {As a Crutch…}
      Then, insult followed injury and the UAW got 16% of *The New GM ! * for their VEBA financing.
      If Barry gets 4 more, how geometric will these scenarios get? Are The American People just a bottomless pit of TakeItAbility, always allowing more and more?
      When is enough ,..enough?

  • Tbone

    instead of a screenwriter, they could have produced a scam wherein the Congress extorts money from the taxpayers and then transfers it to them inclusive of its immunity from prosecution.

    However, let’s not kid ourselves. Republicans can be bought just as easily as Democrats. There is a reason why Congress’ approval rating is 13% and why Obama will win re-election running against Congress on one hand and Chop Shop Mitt on the other.

    • ohiohistorian

      not against the whole Congress. Remember how he jumped out there to support the Senate on the payroll tax?

      As far as “Chop Shop Mitt”, I think you are pretty right. Mr, Romney is just a lot too glib, and uses his SuperPACs to kill off his opposition. They guy with the most money (Obama) will win with HIS SuperPACs. That is why he would like to run against Romney. Mitt is ideally suited to losing at this game. He has neither the stones nor the quickness of thought to take on the Obama machine.

      But, at least if we can get the Senate and retain the House, we can shut down a ton of nonsense for which we are now paying.

  • veritaseequitas

    will plaster The Communist with this garbage. The one thing my sorry excuse for a divorce attorney told me years ago was “if you throw enough mud at something, some of it is bound to stick.” God knows there are enough lawyers that are advising the candidates, can one of them please say something about using this kind of crap to fight The Communist rather than each other?

  • ethos

    Good when the government does it…

    The narrative out there against Romney’s private sector experience is losing potency day by day, whether wielded by Republicans or Democrats.

    Off that topic but staying on Government investment of capital into the economy, I think there is a solid philosophical discussion to be had about the the government’s role in such enterprises. We certainly need high levels of investment into R&D, but where does venture capitalism fit in? Does it? For instance, a strong case can be made that energy is a huge national security issue, and that we need to move towards greater energy independence. That doesn’t even take into account the impact of man’s activity on the environment and the behaviors we’ll need to change to adequately lead the world on that issue. Something tells me that government investing capital in businesses is a mistake, and that basing the activity on a need for green technology business’s to thrive in pursuit of “cleaner” energy production is also a mistake. It isn’t so much venture capitalism when done by the government but instead venture socialism. I’m torn though. The Auto Industry bailout was by all accounts a success after all.

    • http://EasyOpinions.blogspot.com Andrew_M_Garland

      ( http://www.nationalaffairs.com/publications/detail/the-auto-bailout-and-the-rule-of-law )
      The Auto Bailout and the Rule of Law
      Todd Zywicki 03/2011
      === ===
      Of course, this “success narrative” is based on a particular reading of the events surrounding the bailout. According to that reading, the nature of the ’08 financial crisis ? as well as the economic importance of the auto industry ? meant that the government simply could not let GM and Chrysler go under. But at least the unprecedented cooperation between the government and the automakers was undertaken in a deliberate, careful way ? using the government’s special authority to contend with the economic crisis in order to guide the companies through an orderly re-organization (rather than the dreaded chaotic collapse). As a result, the companies were saved, and now they have a chance to thrive again.

      Unfortunately, every part of this reading of events is wrong.
      === ===

  • Michael Dugas

    “CBS News counted 12 clean energy companies that are having trouble after collectively being approved for more than $6.5 billion in federal assistance. Five have filed for bankruptcy: The junk bond-rated Beacon, Evergreen Solar, SpectraWatt, AES? subsidiary Eastern Energy and Solyndra. . .Standard and Poor?s had given the [Beacon] project a rating of ?CCC-plus.?”

    $6.5 BILLION……gone. But lets keep raising the debt ceiling ok?

    http://www.globalwarming.org/2012/01/14/cbs-11-more-solyndras-in-obama-green-energy-program/

    • ashland_avenue

      However, half the people in America don’t pay any income taxes. The true debt per actual taxpayer is probably twice the $39k you show.

  • johnt

    Make no mistake, it’s theft, with a slight cover of legitimacy, slight. Just enough to lull the saps, enough also for the media in need of cover and pretense to pimp for the Democrats and the midget rodent scampering around our WH, and lastly, “progressives”, the semi-humans who never saw a corn cob they didn’t like and never were at a loss find a personal home for it.
    For every criminal state, every statist swamp, every oppressive psychopathological horror there are always those who are on the outside, who stand to lose as much as the Normal People, and who at some semi-conscious level recognize what is going on. Yet they support it.

  • http://EasyOpinions.blogspot.com/ andrew_m_garland

    The very funny 1968 comedy The Producers gives the scheme underlying green energy policy.

    In the film, the Producer (Zero Mostel) tells his accountant that he has sold shares adding up to way more than 100% of his projects. The accountant (Gene Wilder) says that is impossible and illegal. Still, as long as the productions lose money, no one will care about the particular portion that they own.

    Green energy is supported by scientists who want grants, and by a wishful part of the public who care more about saving the world than the cost. However, the reason that all of this has political support is that huge amounts of money can be spent by government and wasted, with flowback political contributions, as long as no one expects those projects to pay for themselves.

    It is exactly the expected failure and expense of green energy which hides the graft.

    The slogan is “Of course these technologies will lose money for 5-10 years. That is the expected cost of a new industry.” Yes, any industry formed by government with public subsidies and mandates.

    Solyndra was supported with loan guarantees. The investors would have owned a successful Solyndra. The government loses and pays back the investors in the failed Solyndra. The government (the taxpayers and public) would lose even if many of these projects succeeded, because we don’t have a share of the winners, only the losers.

    The Political Manual: Adequate Compensation
    - Search for “Create new contracts”.
    === ===
    Encourage new ideas for garbage processing, recycling, green government vehicles, resource management, environmentally sensitive school cafeterias, concrete with recycled content, or biodegradable curtains and furniture.

    You and your family can form a service company FamCo which sells to a preferred company NewContractor. NewContractor can easily win the new government contracts by bidding 70% of the realistic price. It can be expected that the first application of a new technology will have cost overruns.
    === ===

    • http://edgeinducedcohesion.wordpress.com nathanalbright

      ….and also very gloomy. It reminds me of the coin-flipping scam “heads I win, tails you lose.”

  • romeg

    What this country needs is more magical thinking.

    Magical thinking is the solution to ALL our ills, economic and social. Steve, you have the foundation for it. You’re a trained engineer, someone whose profession is devoted to coming up with imaginative solutions to difficult problems. The only drawback to this is that you have been required to abide by the laws of physics. You need to channel your inner Schrodinger; the ability to believe that your cat can be both alive AND dead at the same instant.

    One you have mastered that skill, you too will be able to embrace the ideas espoused by the Greenies and their acolytes in government and believe that solutions can be simple, effective and RIGHT, despite H. L. Mencken’s caution to the contrary; that all the energy we will ever need falls into our yards and onto our roofs every day and is there for the taking if only Government would pour enough money into the pockets of the hucksters and scammers that propound their schemes.

    C’mon now and get on board.

    • http://stevemaley.com Steve Maley

      I now see the wisdom of the 1.6 gpf toilet, CAFE standards and outlawing incandescent bulbs. Also lending trillions of dollars to people who lack the willingness & ability to pay it back.

      Next, I hope Congress takes another look at mandating the value of pi = 3.

      • romeg

        Just keep working at it and you’ll be a pro in no time.

  • http://twitter.com/michael_s_grant msgrant

    as they try to first ‘mandate’ a non-desired commodity like cellulosic biofuel and then worry out loud that over-production will suppress “demand” for it (when there is no demand). What a parade of Marxist fools!! Non-expletive filled speech difficult to maintain when discussing these mindless apparatchiks.