The Department of Energy’s loan guarantee programs have been the focus of much public attention since energy companies Solyndra, Beacon Power, and Abound went bankrupt, leaving taxpayers to shoulder hundreds of mil- lions of dollars in loan guarantees. The evidence strongly suggests that these programs fall short of their stated goals of developing clean energy and creating jobs.
For obvious reasons, more than any other recent events, the waste of taxpayers’ money due to Solyndra’s failure has attracted much attention. However, the problems with loan guarantees are much more fundamental than the cost of one or more failed projects.
In her testimony before the Joint Economic Committee, Veronique de Rugy argued that although infrastructure may be a good long-term investment, it is a particularly bad vehicle for stimulus and will not boost short-term job growth.
Well over a decade of irresponsible fiscal policy has created an unsustainable fiscal situation for the United States. The longer we delay serious consideration of meaningful solutions, the larger the problem will become.
In a testimony before the House Committee on Oversight and Government Reform, Subcommittee on Government Management, Organization, and Procurement, Mercatus Center's Senior Research Fellow, Veronique de Rugy anlyzes America’s unsustainable financial situation.