Politics and business deals don't mix too well, as the
Wall Street Journal explains in an
op-ed.
The more we learn about the Solyndra solar-company debacle, the more the Obama Administration leaps to defend the $535 million loan guarantee. "There were going to be some companies that did not work out; Solyndra was one of them," President Obama told reporters Thursday. Earlier in the week he told ABC News "if we want to compete with China, which is pouring hundreds of billions of dollars into this space . . . we've got to make sure that our guys here in the United States of America at least have a shot."
And there you have America's Solyndra economy, as the White House understands it: Washington allocates capital, and taxpayers pick up the tab if those choices go bust. Through this political lens, the August bankruptcy of the Fremont, Calif. company was a necessary casualty in the greater campaign to steer the U.S. economy toward Mr. Obama's noble goals. Private competition that winnows out losers is so yesterday.
More...
Insiders raised alarms, too. Obama donor and venture capitalist Steve Westly wrote to senior White House aide Valerie Jarrett in May and said "many of us believe the company's cost structure will make it difficult for them to survive long term." Ms. Jarrett wrote to Vice President Joe Biden's chief of staff, Ron Klain, who contacted the Department of Energy. But DOE expressed confidence in Solyndra, with one official noting that "we believe the company is okay in the medium term, but will need some help of one kind or another down the road."
Instead of launching a more serious inquiry, Mr. Klain supported a pending Presidential visit to Solyndra's factory, advising Ms. Jarrett of "risk factors" but adding that "it looks like it is OK to me, but if you feel otherwise, let me know." Ms. Jarrett replied "I'm comfortable if you're comfortable," and Mr. Klain responded, "The reality is that if POTUS visited 10 such places over the next 10 months, probably a few will be belly-up by election day 2012—but that to me is the reality of saying that we want to help promote cutting edge, new economy industries."
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