Yet another government failure

WSJ’s reporter, Mike Ramsey, reported last week  interesting numbers about electric cars. Not that you didn’t know this, but it’s far more shocking when all the info is gathered into one place:

Since 2009, the Obama administration has awarded more than $1 billion to American companies to make advanced batteries for electric vehicles. Halfway to a six-year goal of producing one million electric and plug-in hybrid vehicles, auto makers are barely at 50,000 cars.

The nine battery plants where the money went “have created less than a third of the jobs promised by 2015. ”

Some companies are already going bankrupt. Solyndra, anyone? Excuses for failure include: not enough time to build a market, timelines too strict, etc. The actual grants to companies were very strict, just like the Stalinist “Five-year Plans.” A certain number of batteries were to be produced by a specific time. Stupid.

How many times do we have to tell the govt planners – Socialism doesn’t work. Period. End of story. When Socialism comes into an established economy, the bleeding is slower and it takes much longer for the system to fail. However, the systems are failing all over Euroland, except for Germany, which is the least socialistic of them all. What are the others doing to fix their problems?

Extend and pretend. Borrow and hope. Complain and whine. Twist and shout.

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About InvestingforOne

I've been investing in various assets by myself using a discount broker for many years. Over that time, I've developed some theories that others might find useful. Plus, there is more to investing than money. Time, talent, work, friends, family all go into developing a good and satisfactory strategy.
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4 Responses to Yet another government failure

  1. everythinghk says:

    My wife has long wanted an all electric Tesla. Last year while in Los Angeles we went and looked at one. They are super cool and by far the most advanced of all the electric cars, too.

    The economics of the car made sense to me until I heard the cost of the replacement battery pack that was a whopping $10000 or $15000 (installed) and needed to be replaced every 5 years. These battery packs function much like laptop batteries and when they go they die very rapidly.

    Any savvy consumer knows the replacement cost of a battery in a standard hybrid is $5000-$6000 if you want to get the full gas mileage.

    Battery technology (fuel cells) will get there in the next 10 years but for now it’s not really viable for cars. We still have a long way to go with the combustion engine and recent advances in turbo technology push cars like the Chevy Cruze close to the campfire mobile (Chevy Volt).

    The German manufactured Smart car has a 1 cylinder turbo diesel motor that gets 65 MPG and is sold in Germany currently.

    The socialists in this country have driven the cost of diesel fuel through the roof ($4/gallon) because they have some vision of the world looking like the SCI-FI Movie Logan’s Run.

    In Logan’s Run, sex is free and without consequence (no matter the sexual orientation), healthcare is managed by government death squads, firearms are only owned by the government, global pollution is a myth perpetuated by scientists to control people, religion is looked down upon and of course nothing but electric cars!

    Doesn’t take much of a conspiracy theorist to figure out our government is being run by people that have seized a bunch of old Sci-Fi scripts from the 60’s, 70’s and 80’s. Instead of carrying a copy of the Constitution with him……our President carries a copy of George Orwell’s 1984…

    HK

    • What a great cultural connection! The dystopias of SciFi stories are perfect models for where the current administration seems to want to take us!

      • everythinghk says:

        If you really look into fiction writing an author needs to introduce enough reality to make the fiction seem real.

        Gene Roddenberry creator of Star Trek was a giant liberal. Many one world utopian ideas were presented through that series although I can’t really figure out where the Borg fit in.

        I think 1984 was written as a warning to future generations about the principals of totalitarianism, socialism and communism.

      • The Borg is evidence that either Roddenbury was finally seeing the totalitarian truth behind all socialist societies or that Leonard Nimoy and William Shatner were having more creative control. Both knew that there is a significant difference between a well-oiled team working together and a mindless mob, though from the outside sometimes they seem to have much in common.

        I appreciate your digging deeper into this topic.

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