Tweet [1]
Here’s a shocker from the Washington Post [2]:
A $38.6 billion loan guarantee program [3] that the Obama administration promised would create or save 65,000 jobs has created just a few thousand jobs two years after it began, government records show.
The program — designed to jump-start the nation’s clean technology industry by giving energy companies access to low-cost, government-backed loans — has directly created 3,545 new, permanent jobs after giving out almost half the allocated amount, according to Energy Department [4] tallies.
President Obama has made “green jobs” a showcase of his recovery plan, vowing to foster new jobs, new technologies and more competitive American industries. But the loan guarantee program came under scrutiny Wednesday from Republicans and Democrats at a House oversight committee hearing about the collapse of Solyndra, a solar-panel maker whose closure [5] could leave taxpayers on the hook for as much as $527 million.
The GOP lawmakers accused the administration of rushing approval [6] of a guarantee of the firm’s project and failing to adequately vet it. “My goodness. We should be reviewing every one of these loan guarantee” projects, said Rep. Marsha Blackburn (R-Tenn.) [7].
Obama’s efforts to create green jobs are lagging behind expectations at a time of persistently high unemployment. Many economists say that because alternative-energy projects are so expensive and slow to ramp up, they are not the most efficient way to stimulate the economy.
Sometimes, “many economists” are right. Here’s some wisdom from one economist:
The curious task of economics is to demonstrate to men how little they really know about what they imagine they can design.
F.A. Hayek
The plan was to create (or save) 65,000 jobs. It apparently didn’t turn out that way.