Biden doesn't know it all (Wallace)
05/20/2018 Filed in: News Journal
Biden may think he knows it all, but the history of some of his endorsements have proven otherwise.
Take, for instance, a $528 million loan he recently endorsed to Fisker Automotive. At the time, Biden claimed that, by 2014, some 2,000 “Green Economy” factory jobs would be created at the Boxwood Road facility. In endorsing the Fisker project, Reuters quoted Biden as saying “we understand a new chapter had to be written, a new chapter in which we strengthen American manufacturing by investing in innovation.
This language is much the same as his Wednesday UD speech – and we all know that the Fisker undertaking proved to be a bust and loss to the government of the monies loaned. Thus, in sum, I don’t think it wise to rely on what Biden might think, as he certainly lacks business smarts.
See also this post by SAFE founder Bill Morris’s from the Delaware Chatter archives:
1/15/10, Fisker, battery maker have deal, Andrew Eder - One day after talks were broken off with one battery supplier for its planned plug-in hybrid cars, Fisker Automotive announced a deal with another one. The new supplier is A123 Systems (an MIT spinoff company). Fisker plans to introduce an $87,900 car in September, and later to produce a less expensive model at the former GM Boxwood Road plant. It is doubtful that either model would be marketable without federal tax credits for purchasers.
Fisker will receive a $529 million loan from the U.S. Department of Energy (DOE) to buy and retool the Boxwood Road plant. It has received financing from several venture capital firms, but the DOE wants more equity capital. A123 will help by investing up to $23 million ($13M cash, $10M stock) in Fisker. By the way, A123 received a $249 million DOE grant last August.
Got all that? Friends have reminded me that similar arrangements and the government control that went with them were characteristic of Fascism.
What is the excuse for government grants, loans and tax credits? The “green” jobs involved do not sound like much of a bargain, especially after considering associated job losses elsewhere in the economy. Surely not the effect on global temperature, if any, and there are far more effective ways to reduce oil imports such as relaxing restrictions on development of untapped domestic oil and gas resources.
The proliferation of plug-in cars could exacerbate the developing shortage of electrical capacity due to misplaced emphasis on wind turbines and solar panels. More economic power sources will be needed, including fossil fuel and nuclear power plants. We hope to foster a better public understanding of the advantages of nuclear power.
In summary, Fisker is a risker.