LAT - Elon Musk’s growing empire is fueled by $4.9 billion in government subsidies
Los Angeles entrepreneur Elon Musk has built a multibillion-dollar fortune running companies that make electric cars, sell solar panels and launch rockets into space.
And he’s built those companies with the help of billions in government subsidies.
Tesla Motors Inc., SolarCity Corp. and Space Exploration Technologies Corp., known as SpaceX, together have benefited from an estimated $4.9 billion in government support, according to data compiled by The Times. The figure underscores a common theme running through his emerging empire: a public-private financing model underpinning long-shot start-ups.
“He definitely goes where there is government money,” said Dan Dolev, an analyst at Jefferies Equity Research. “That’s a great strategy, but the government will cut you off one day.”
No Jackass, it’s NOT a great strategy.If gvt money is to be used at ALL to develop markets, to invent markets, to spread markets, it MUST be restricted to R&D.
Imagine if every dollar BLOWN on Solyndra (ETC, add them up), on subsidizing wind power (which is STILL non competitive despite that), photovoltaic manufacturers…yadda, yadda had gone to the PURE research which made batteries for all this CHEAPER (and able to function in the northern half of the US) AND made renewable power competitive.
Would we need any help worldwide?
Would people have to be cajoled to buy hybrids, and plug in vehicles?
If photovoltaic panels and their subsystems and conversion to AC competed with Hydroelectric what would happen in the USA to the entire conversation about global warming?
If every homeowner could help himself go off the grid with a $2,000 wind power station for his own home, what would happen to DISPOSABLE INCOME IN THE USA MIDDLE CLASS?
Subsidies to manufacturers is a moron’s answer to competition, and it breeds WEAK, wrong thinking direction, products, and employment which DIES in dead end directions weakening the national economy and the nation itself.
Wowza!
ReplyDeleteI was aware that Tesla was propped up with government money, but I was not aware these other companies were similarly financed.
He's kind of a paper tiger, then, isn't he?
David Stockman (financial writer) recently called Musk "a serial harvester of the Washington money tree."
ReplyDeleteThis is crony capitalism in it's most naked form: The administration lavishes our money on their buddies-in-business with built-in feedback loops to their own campaign chests. Not as obvious as Clinton style grifting but just as effective.