Attention Economy


Thursday, September 15, 2011

Solyndra and Government Intervention

The recent recession and the slow recovery that followed has created pressure on governments to engage in old-fashioned industrial policy type activities. The US government has been pushing 'green jobs' and investments in alternative energy companies. Economists are typically wary of government attempts to pick "winners". Here is a great example indicating why governments are not likely to be better than markets at picking "winners":

The fall of Solyndra - a much hyped solar company
http://www.washingtonpost.com/politics/solyndra-solar-company-fails-after-getting-controversial-federal-loan-guarantees/2011/08/31/gIQAB8IRsJ_story.html

Update -
John Stewart at his best (saw the video first on Greg Mankiw's Blog)