Why a solar panel bailout? Because a solar panel bubble will cause a solar panel bust.
Directly funding private corporations isn’t always possible in the United States. It looks like you are taxing the poor to build up the rich. That is because, when you give corporate welfare, you are taxing the poor to build up the rich.
So what do you do?
You come up with a relatively cheap way to “stimulate” the industry and then, when the inevitable collapse takes place, you portray the situation as a dire emergency. American can’t let the industry “die” so the government must step in and save it. In emergencies, real or imagined, all kinds of spending can suddenly be justified.
In the case of the solar panel industry, the “stimulus” was subsidies that were supposed to be temporary.
Thus, CNS News tells us, “Report: Danger of Government-Created Solar Bubble Bursting When Subsidies Expire in 2016.”
Federal subsidies have created a massive “green bubble” in the solar industry that is in danger of bursting when they expire next year, leaving taxpayers on the hook for billions of dollars, according to a report by the Taxpayers Protection Alliance (TPA).
Homeowners and businesses that install a solar energy system are currently entitled to a 30 percent Solar Investment Tax Credit (ITC), which was initially passed by Congress in 2006 and extended for another eight years in 2008.
However, the ITC will drop to 10 percent for commercial and zero for residential properties on Dec. 31, 2016.
And even members of the heavily-subsidized solar industry, which provides less than one percent of the nation’s electricity, are worried that it cannot stand on its own without government handouts.
“The reality is that we will lose 100,000 jobs if we lose the ITC — and these are conservative numbers. Ninety percent of solar companies will go out of business,” Rhone Resch, executive director of the Solar Energy Industries Association (SEIA), told participants at PV American 2015 in March.
SEIA spokesman Ken Johnson said that lobbying Congress to extend the ITC beyond 2016 is the group’s “top priority.”
Notice that we have at least 100,000 jobs that are completely dependent on government debt backed by the tax payers as collateral. That is all completely unsustainable but it means that the boasted Obama “recovery” and the “good” jobs reports are even more inaccurate than we thought. Much of our “recovery” is essentially workers on welfare through corporations on welfare.
But, when those jobs are threatened, ending those jobs is treated like an economic disaster. That’s why we know we are probably going to have a solar panel bailout in the near future.