Socialized Risks, Privatized Profits
You’ve got to love this press release from President Obama’s Department of Energy talking about “investments” getting tax dollars because they are “too risky” to attract private investment.
(CNSNews.com) – The Department of Energy announced the distribution of $43 million in funding for the development of energy storage technology that is “too risky for private-sector investment.”
The Aug. 2 press release said the recipients were chosen through two programs of DOE’s Advanced Research Projects Agency-Energy – the Advanced Management and Protection of Energy Storage Devices (AMPED) and Small Business Innovation Research (STTR).
“ARPA-E was launched in 2009 to seek out transformational, breakthrough technologies that are too risky for private-sector investment but have the potential to translate science into quantum leaps in energy technology, form the foundation for entirely new industries, and have large commercial impacts,” the press release said.
In other words, if these projects fail, the taxpayers take the hit. But if they succeed, well then of course the private interests will get the profits.
That’s not a good deal for the taxpayers. Especially considering that the government’s “investing” criteria is usually who schmoozes the politicians the best, not who has the best project worthy of investment.
But this doesn’t just happen at the federal level. Right here in North Dakota the feds just released news of a low-interest loan program for businesses in communities across the state. “With some of these businesses, because they’re new start-up ventures, banks might see them as too risky,” Mandan Business Development Director Ellen Huber said. “It (the loan fund) reduces everybody’s risk. … A lot of businesses get off the ground that otherwise wouldn’t have.”
Socialized risks, privatized profits.Tags: department of energy, investment, sociailzed risk