Friday, June 01, 2012

A123 Reports Massive, Unsustainable Losses Of Taxpayer Money

I’m well behind on some of my posts but want to get this up before too much time passes.  When Jennifer Granholm and Barack Obama, both highly qualified PhDs in chemical and electrical engineering, pissed away massive taxpayer “stimulus” investments on A123, a quote from my post at the time was:

But here is the best part about our brand new factory. First off the taxpayer money went to a foreign firm. I'm more than fine with foreign investment but not so fine with taxpayer money funding it. It gets much better. For every permanent job it creates, the government spent $500,000 of your money. Those jobs will probably pay about $50,000 per year on average. So the taxes collected annually by the federal government would be what? I suspect about $5,000. So that means the government's return on invested capital would be about 1oo years. Don't get excited yet. It gets even better. So we could re-employ all of the unemployed and underemployed people in this country if our President would raise our taxes by $17 trillion a year. That's on top of the $3 trillion in spending they already account for. So, all you need to do is work for free, live in a cardboard box, have no money to eat and spend your free time foraging for bugs.

Now it is two years later and A123 is still reporting massive losses.  These losses are so enormous that the public investment will never be recovered.  Ever.   It’s  mathematically impossible.   A123 most likely won’t even exist in the not too distant future.

The moral of the story?  Political misfeasance driven by the arrogance of Washington’s idiocracy;  that would be the endless supply of political dunces who are clueless to their own systemic incompetence spending our money on their brilliant ideas and bridges to nowhere.  Another example of the dumbed-down corporate state.  Merit is dying in our nation as our voices are drowned out, both economically and socially, by ignorant politicians rigging the system for incompetent corporate bureaucrats.

Politicians are simply bureaucrats who live off of the productive people in our society.  They are administrators we hire to keep the ship afloat while We The People go about the business of providing for our communities and our nation.  If our president and Michigan’s governor really understood the automobile market, they should have started a company to create the products needed or gone to work for a company that could employ their talents.   Instead they pissed away massive amounts of taxpayer money on this and other useless schemes.

Politicians are not to be trusted with making economic decisions they have no understanding about.  (That would be nearly everything)  Politicians are there to make sure Social Security checks arrive on time and unemployed people get their benefits and infrastructure are repaired and to make sure Wall Street and corporate looters don’t destroy our economy and society.  Aka administration.  Although they most certainly haven’t shown a competence in that either.  

Story link here.

posted by TimingLogic at 10:06 AM