It’s hard to push string. That’s something the marionette masters in Washington are finding out. They’re used to dangling money in front of people. Watch the puppets leap!
But dangling money in front of folks in turn for votes and donations, that’s one thing. Investing in business? Quite another.
You see, businesses serve customers. While government can, indeed, invest in business, that investment doesn’t ensure success.
Developing and offering products on the market that people want to buy — that makes for success.
No matter how nifty something may seem to the investor, if it’s too costly for the targeted consumer — or simply fails to spark consumer fire — the company will not make a go of it, no matter how progressive the government doing the investing.
Sunday’s bankruptcy filing by Beacon Energy, a maker of an innovative flywheel electric energy storage system — energy storage being awfully important for that dubious future where we must rely more on unreliable and uncontrollable sources of energy, like wind and solar — is just another in a long history of failed government investments. In this case, other investors failed to come through.
On the bright side, this time the $43 million in loan guarantees, similar to those pushed to now bankrupt Solyndra, came with better collateral. Thus, this failure didn’t leave quite as big a hole for taxpayers.
Politicians like investing other people’s money (ours) . . . with their own political strings attached. But they hate that those strings lead right back to them when their corporate puppets wind up dead.
This is Common Sense. I’m Paul Jacob.