As I’ve said before, it’s a rash thing to jump into the “green” movement due to simplistic ideals of saving the planet and being a good person. More thought is required. Proof is offered in Evergreen Solar Inc.’s filing for bankruptcy. Even with $58 million in financial aid, the Massachusetts green energy company went under, citing increased competition from China and “plummeting prices for solar panels.”
Ironically enough, not only was it hurt by competition from China, it had previously shifted some of its own production there. That’s not an unusual scenario in the eco-friendly industry. As an example: the rare metals used in “green” wind turbines are almost all exclusively from China, who has no qualms using them as leverage against other countries. Coupled with their growing manufacturing sector, they’re squeezing American companies which cannot compete. As such, pumping money into green companies may do nothing more than prop them up before their eventual demise at the hands of the global market.
Those in defense of the company said it has earned the majority of the benefits it received due to the jobs it created. Yet what were supposed to be long-term jobs turned out to be quite temporary, hardly an economy booster. Would it not have been smarter to spread those millions around to people or companies through reduced taxes?
For those who think that pouring government money into green energy is a good idea, perhaps this will serve as a warning sign.