Would you buy a used car from Barack Obama? Or would you want him managing your 401(k) investment retirement plan at work?
The president, of course, isn’t in that business specifically, but in a larger sense he’s been investing our money, picking the businesses he thinks will fuel economic expansion, new jobs and the technology of the future, and rebuild the nation’s fraying infrastructure.
All it takes is money - ours - he says, and he’s been spending it as fast as he can in a failed attempt to get the economy growing again. The economic policy term for this is “central planning,” wherein the government tries to pick the winners and losers and dumps hundreds of billions of dollars into various business sectors in the belief that it will pay off in the long run.
The government isn’t very good at this business, as we’ve seen in the disastrously ineffective $825 billion spending stimulus plan that President Obama and the Democrats shoved through Congress in 2009.
Much of that money went into the budgets of countless federal departments, agencies and other programs that spent it. Still more went to states, counties, cities and towns for infrastructure programs or to keep public workers employed.
A lot of the money was given to businesses that Mr. Obama thinks will be good for the environment, though his investment decisions didn’t always work out the way he hoped.
Consider the White House-backed solar energy firm Solyndra Inc., which declared bankruptcy this week after pocketing a $535 million loan guarantee from the U.S. Department of Energy. Critics called the deal a “stimulus black hole.”
He was quite proud of his investment, boasting at the time, “Less than a year ago, we were standing on what was an empty lot,” but now here was this shiny, new factory that “is the result of those loans” backed by his administration.
It was later learned that the White House fast-tracked Solyndra’s loan application, rushing Mr. Obama’s pet project through without a lot of serious checking. Federal investigators said that the administration had bypassed procedures to safeguard the taxpayers’ investment.
Mr. Obama is big on the solar-panel industry and under his policies, the government has dumped a lot of our money into it in the past three years. But it turns out that the U.S. industry has not turned out to be the bonanza that he sold to the country. Prices for solar panels have fallen because of strong competition from China, making the fledgling industry precarious at best without heavy federal subsidies.
Evergreen Solar Inc. filed for bankruptcy last month after being forced to close its plant in Massachusetts that was built with state and local government subsidies.
Senate Energy Committee Chairman Jeff Bingaman, New Mexico Democrat, says the loan guarantee program “has not worked as well as we had hoped.” Sounds like a Wall Street investment banker defending a fat bundle of subprime real estate securities that went bad.
The solar-panel industry is not the only “investment” Mr. Obama has sunk a lot of our money into. While the plants build with his loans make for great campaign photo ops, the costly reality is that government is trying to pick the winners and losers in our economy instead of the private sector.
But Mr. Obama thinks he’s good at this investment business and now he is trying to convince us to buy into to a new federal “infrastructure bank” that will make off-budget grants and loans to rebuild “roads, bridges and ports and broadband lines and smart grids” with $30 billion of our money.