We here at EconoLOL are not gloating nor do we take any satisfaction in the demise of any company (with a few rotten exceptions). We do, however, take delight in pointing out the most basic and fundamental of proven economic laws via real world examples. Such a law is on full display in the announced bankruptcy filing of Solyndra, a solar panel manufacturing company and pet project of Pres-O.
As a beneficiary of the misnamed Recovery Act and referenced as a success story validating the achievements of the stimulus package, Solyndra had to shut its Cali based factory and lay off over 1,100 employees. This is in stark contrast to the White House forecasting of 4,000 jobs to be created by Solyndra, who ended up creating only 585 jobs after being fast-tracked for loans by the federal gov’t and receiving $535 million from the stimulus fund.
To quote Pres-O, “Less than a year ago, we were standing on what was an empty lot. But through the Recovery Act, this company received a loan to expand its operations…this new factory is the result of those loans.”
To quote econoLOL, “what is it going to take for a government consensus to acknowledge that markets cannot be artificially created and that capital allocation must have rational forces driving it to yield positive results?”