Should the U.S. Administration Pick a Winner in Alternative Energy?

Discussion in 'Politics' started by sarfralogy, Jun 20, 2012.

  1. sarfralogy
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    sarfralogy Rookie

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    In recent years, China has emerged as the dominant player in green energy -- especially solar power. But despite rapid growth in recent years, solar power is more entrenched in European countries like Spain and Germany. They have promoted its development with strong incentives called feed-in tariffs that require electric utilities to buy solar power at a high, fixed price. The United States accounted for $1.6 billion of the world’s $29 billion market for solar panels. It accounted for at least half of the world’s production in 2010, and its market share is rising rapidly. But, while most U.S., Japanese and European companies still have the technological edge, China has a cost advantage. Analysts have said China has achieved this dominance through lavish government subsidies in its solar industry that are detrimental to American companies and other foreign competitors.
    The U.S. Commerce Department recently ruled that Chinese manufacturers are guilty of dumping solar panels in the US market for less than it cost to make them. This was a violation of World Trade Organization rules that harmed American manufacturers. As a result, the Chinese manufacturers -- including Wuxi Suntech Power Co., Ltd. And Changzhou Trina Solar Energy Col, Ltd., among others -- will have to start paying a tariff of more than 31 percent when their products enter the US market. The issue has divided the U.S. solar industry, with manufacturers complaining that Chinese trade practices are driving prices down artificially and smothering U.S. production. Others in the industry say the complaint is counterproductive, given that most solar-related jobs in the U.S. are in fields like installation and sales that have benefited from cheap Chinese panels. U.S. manufacturer Solyndra became highest-profile victim of plunging panel prices last year, forced to file for bankruptcy despite receiving $535 million in federal loan guarantees.
     
  2. Mr. H.
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    Mr. H. Diamond Member

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    The market should pick the winner. But then, alternatives wouldn't go anywhere.
     
  3. Charles_Main
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    Charles_Main AR15 Owner

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    Yeah, Sure because he has been so great at picking winners so far.

    lol

    What ever he picks should be what we don't invest in.
     
  4. whitehall
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    whitehall Gold Member

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    In recent years China has evolved into a gigantic manufacturing country. It didn't make money off "green energy" and in fact Bejing is among the most polluted cities in the world. "Green energy" doesn't make a country rich, it makes greenies feel better about wasting money.
     
  5. g5000
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    g5000 Diamond Member

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    I have only been burned once on a stock, and that was a US solar company.

    No, not Solyndra. :lol:

    China is indeed cheating. They are countering our technological edge with their manpower edge and their edge in government largesse. They have much more money to create bubbles than our government does.

    That will catch up to them, sooner or later, though.

    But in the meantime, their cheating is hurting US competitors big-time.
     
  6. Skull Pilot
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    Skull Pilot Platinum Member

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    Well we do know that the government knows how to pick losers.

    Maybe we should give them a chance to pick a winner. After all it's only tax payer money.
     
  7. Claudette
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    Claudette Gold Member

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    Yeah. Taxpayer money that they have no problem wasting.

    Govt isn't in the business of picking winners.

    Thats pretty obvious for anyone to see. Especially the taxpayers.
     

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