About industrial policy

Several issues cry out for investigation: Did government officials rush to approve a $535 million loan guarantee to the company two years ago? Did company officers paint an overly rosy picture of Solyndra’s finances after trouble set in? Why, earlier this year, did the Energy Department agree to let private investors get their money back from Solyndra before taxpayers did? (Source: Bloomberg)

This is another case proving the point that indutrial policy causes corruption. Let the markets decide what is best for us. Apple did not have government subsidies to deliver its products.

We like to think that governemnts create jobs. We forget about the consequences of having a large government run by bureaucrats who do not have any idea of how business is run.

Large governments nurture corruption and waste. We need governments that set fair rules of the game and enforce the rules. Not a government that subsidizes most aspects of our lives and in some cases sets regulations to protect targeted sectors of the economy.

The outcome is deteriorating productivity of the country, slower growth, and high unemployment.

George Dagnino, PhD
Editor, The Peter Dag Portfolio. Since 1977
2009 Market Timer of the Year by Timer Digest

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