(Re-)Introducing: The American School of Economics
When the United States became independent from Britain it also rebelled against the British System of economics, characterized by Adam Smith, in favor of the American School based on protectionism and infrastructure and prospered under this system for almost 200 years to become the wealthiest nation in the world. Unrestrained free trade resurfaced in the early 1900s culminating in the Great Depression and again in the 1970s culminating in the current Economic Meltdown.
Closely related to mercantilism, it can be seen as contrary to classical economics. It consisted of these three core policies:
protecting industry through selective high tariffs (especially 1861–1932) and through subsidies (especially 1932–70)
government investments in infrastructure creating targeted internal improvements (especially in transportation)
a national bank with policies that promote the growth of productive enterprises rather than speculation
Frank Bourgin's 1989 study of the Constitutional Convention shows that direct government involvement in the economy was intended by the Founders
American School of Economics
American School (economics) - Wikipedia, the free encyclopedia
Solyndra accounts for less than 2% of the DOE's successful Loan Program
Despite what critics say, the DoEÂ’s guaranteed loan program is a successful program. The default rate for the loan portfolio is less than 4%. By comparison, the loan default rate for the Small Business Administration is nearly 12%, three times as high as the DoEÂ’s loan program.
Secretary Chu also clarified that the actual cost to the taxpayer of DoE's loan program will be roughly $2.5 billion, which is the actual amount appropriated to the program, and not the $38.6 billion that is often cited. Considering the program has created over 60,000 jobs, it cost taxpayers roughly $42,000 per job created
Solyndra accounts for less than 2% of the DOE's successful Loan Program
Reuters: Venture Capitalists Point To Solyndra As One Of The Top 10 Companies "Ripest" To Go Public. Reuters reported in August 2009:
Investors eye top startups as IPO market awakens - Aug. 19, 2009
Market Conditions Shifted Significantly from 2009 to 2011
"advantages that were more important in 2009 when it received a $535 million U.S. loan guarantee to build a factory" than they are now, noting that the price of the silicon-based panels with which Solyndra was competing "has fallen 46 percent since then."
Obama?s Solar Bets May Avoid Solyndra?s Fate With Low Costs - Bloomberg