I know saying that is impolite, but I simply cannot resist. Today’s WSJ lead article on the collapse of the solar industry is confirmation of what I have been saying for years. The interest rates were low tempting silly economics, the claims for savings were high and unsupported with facts, the true costs to nonparticipants were high and unsustainable within fiduciary responsibilities, and the demand would collapse as a result. Ta da!
How many stockholders are going to take it in the shorts? I don’t know, but what I do know is that whenever the government picks winners and losers you get these corrections. Haven’t we learned anything from Obama and Solyndra? Don’t we remember the boom/bust cycles caused by Jimmy Carter’s ban on this or that plus absurd incentives to promote incorrect alternatives to energy challenges.
Can’t we see we are on the same path again with the climate change crisis? I am seeing a groundswell of caution emerging finally, but it is still drowned out by the Kool-Aid swallowing climate alarmists.
Look … I am fully onboard with the quest to reduce our energy footprints, but the solution to these existential questions is not consistent with our paths taken today. There are so many great ideas and important social questions we should consider, but they are drowned out by the quest for more lithium to make more and bigger batteries and the arguments over where we can put all these wind turbines.
Those are important supply side questions but notice that the real problem now is the demand side … the fervor for EVs, solar, wind, etc. is declining rapidly. If you build the EVs being pushed by the alarmists, they are going to sit in the dealer car lots … as they are doing right now.
There are no easy answers in life. That is why it is so important to talk through realistic choices and let people choose. That is why economists insist that price signals reflect these choices. But, in the same breath, economists will remind everyone that the true price signals are often elusive and therefore policies must be formulated that make choices easier. How many Americans or other citizens of the world understand this?
Nope. They are hoping others will simply decide for them. They have, but they don’t either understand these complexities or have become complicit with opportunists because it feathers their nests. Follow the money.
As Al Gore and Richard Branson replied when asked by an interviewer if they were climate Prophets in Planet of the Humans, Gore responded, “It all depends on how you spell Profits!” And the two of them tossed their heads back and doubled over howling with laughter…at us. You can watch it on the well-done documentary on Amazon Prime.