As the coordinator for a think tank, we spend a lot of time looking over entrepreneurial business plans for new startups. I am always amazed at the number of business plans that I’ve been reading, especially in the last five years that have to do with clean technologies, green companies, and alternative energy. Still, I am quite concerned because many of these business plans simply do not have a compelling reason to risk the capital. Okay so, let’s talk about this for second shall we?
If I as a retired entrepreneur, and founder of a think tank do not feel comfortable recommending these startups to angel investors and venture capitalists, for fear that it might tarnish my reputation, and realize it’s not even my money involved, then why is it okay to use taxpayer guaranteed money to fund some of these same projects? If they aren’t viable, they shouldn’t be done. If their only chance for success has to do with tax rebates, temporary waivers from regulatory agencies, and low-cost funding from the government – then actually they are not viable at all, certainly not in the free marketplace.
In that case, may I ask why we are bothering with this? I know the answer, but I pose the question because I am a little bit tired of the political agendas, the anti-fossil fuel motive, and this new religion of global warming. This country needs reliable and low-cost energy. By having that we are giving a boost to all of our industries, meaning they can compete better globally. If we overtax our infrastructure, and take that money and funnel it to projects which are not viable, all we are doing is manipulating the free-market system in a pathetic and disgusting way (my opinion, because I’m not allowed to say that, as it isn’t politically correct, which is in itself pathetic).
At some point we need a Frank discussion, and we need to talk about the truth, fairness, and reality of the free-market. We aren’t doing that in our country, and I fear we are throwing more good money after bad, to what avail I ask?
There was an interesting piece recently in the Austin Business Journal titled; “SBA launches nationwide fund to invest $1.5B in small biz – -The SBA U.S. Small Business Administration Latest from The Business Journals Follow this company is launching a new national fund to make equity investments in technology companies, particularly “cleantech” firms.” by Megan Kamerick, reprinted from the New Mexico Business Weekly. Anyway the article stated;
“Through the new initiative, the SBA will commit $1 billion to funds focused on investing in underserved markets or in sectors that have been defined as national priorities. These can be businesses located in, or employing residents of, low or moderate-income areas or economically distressed areas. They can also be industry sectors the Obama Administration has identified as national priorities. Right now, that includes clean energy and education.”
Indeed, if the government would just get out of the way, we would solve all of our problems, the same challenges wouldn’t have had in the first place. To claim that right now we have a politician who has identified our national priorities as his own pet projects, and political agenda is ridiculous. If that’s his agenda, why doesn’t he quit being president and go out in the real world and compete in the free markets make $1 billion, and then use his own money?
Well, the reason is he doesn’t, is simple, he does not have the ability to do that, he only has the ability to read a teleprompter and tell us what to do, and then bribe us with our own money. What I don’t understand is how Americans can be so smart and still not see this? And if we are giving loans to people that don’t understand the concept I just explained, then they aren’t smart enough to run a business anyway, and they’re just going to lose money, and default on those loans, and it’s going to be the taxpayer who foots the bill over and over again – can’t you see this pattern? Please consider all this and think on it.