Solyndra -- Tip of the Crony-Capitalist IcebergSubmitted by GuyFawkes on Mon, 09/19/2011 - 16:17
The problem President Obama has with Solynrda is not necessarily isolated to the company and its collapse. The real problem lies in the fact that Solyndra symbolizes the collapse of the crony capitalist model that has become the hallmark of administration policy.
President Obama came into office promising to host of arrogant undeliverables much of which were encapsulated in a speech he gave in 2008 when he said: “I am absolutely certain that generations from now, we will be able to look back and tell our children that this was the moment when we began to provide care for the sick and good jobs to the jobless; this was the moment when the rise of the oceans began to slow and our planet began to heal; this was the moment when we ended a war and secured our nation and restored our image as the last, best hope on earth.”
This arrogance found its way into the president’s economic policy -- the fundamental premise of which was the belief that government could kick-start and create markets where none existed. In other words, politicians and bureaucrats could better allocate resources than the market.
Solyndra’s collapse is a house of cards whose foundation was laid with a trillion dollars of stimulus spending. Frederick Hayek called this arrogance the “fatal conceit,” the belief that one man or one group, one cabinet of commanding officials or one central committee, or one team of planners from Harvard and Yale, can gather and understand enough information in order to reshape the world around them according to their wishes, reshape human nature, and design an economic system that can outstrip the overall and long run performance of the decentralized and basically self-ordering and spontaneous processes of the marketplace.
Of course, the fatal conceit is often in competition with its partner cronyism and corruption. It should come as no surprise that the people who want to reshape their world would allow their friends and political supporters to do the reshaping.
It’s no surprise to see Google executive Eric Schmidt on TV this Sunday demanding more government spending. After all, he helped steer his company on the gravy train. But rather than being shocked to see a corporate executive demanding more government we have become used to it. That is the sad state of the American economic system. Too many executives – whether at a green energy company or an Internet giant like Google – see the government as a way to get ahead.
Solyndra, GE, Google and others all follow a similar pattern of political contributions followed by government largess, grants and stimulus spending. After all, in the eyes of the Obamacrats allocating these resources to their friends make sense as they are the ones most likely to change the world in the right way.
Ron Paul made the case a long time ago that Obama was neither a socialist nor a liberal but a corporatist. The collapse of Solyndra is further proof he was right.