Democrat marketing --- will Obama Motors succeed?

The recently passed stimulus package contains $32.8 billion in incentives for renewable energy, heavily skewed to photovoltaic solar power. It is primarily in the form of tax incentives to manufacturers to ramp up production of solar cells and loan guarantees to folks who want to install them. The goal is to dramatically increase the US market share of PV arrays from the 10% we now hold. Yet within 6 weeks of the signing of the stimulus package BP Solar announced it will lay off 140 employees at its Frederick Maryland plant and outsource module assembly to Europe to save 25% in production costs. Even with all the incentives in the offing, they simply couldn’t compete. I have always been amazed by Democrats’ lack of grasp of market economics. Their assumption is if a product is made in the US, consumers will line up to buy it. The reality is there must be demand for the product, it must be made and sold at a competitive price and it must live up to acceptable quality levels to succeed. One only wonders what will happen when Obama starts running GM and Chrysler. With his motivation to produce not what the public wants, but what he thinks they should have and then having the UAW as co-owners and decision makers with their reputation for producing shoddy products, it should make for challenging times. Very challenging! It won’t help either, that nearly half voted against Obama and are terrified with the direction of the country. Losing half your market isn’t a great way to start. The success of Obama Motors will definitely be an up hill battle.

Al Gore proposes...er blackouts

Al Gore today called for replacing all carbon based electric power generation with alternative forms, primarily wind, solar, and geothermal in the next ten years. From the Washington Post:

…That is why I'm proposing today a strategic initiative designed to free us from the crises that are holding us down and to regain control of our own destiny. It's not the only thing we need to do, but this strategic challenge is the lynchpin of a bold, new strategy needed to re-power America.

So today I challenge our nation to commit to producing 100 percent of our electricity from renewable energy and truly clean carbon-free sources within 10 years.

This goal -- this goal is achievable, affordable and transformative. It represents a challenge to all Americans in every walk of life, to our political leaders, entrepreneurs, innovators, engineers, and to every citizen.

A few short years ago, it would not have been possible to issue such a challenge. But here's what's changed: The sharp cost reductions now beginning to take place in solar, wind and geothermal power, coupled with the recent dramatic price increases for oil and coal, have radically changed the economics of energy….

I pulled up these Intellicast wind maps a few hours after he delivered his speech. They cover the entire eastern portion of the country at 10PM EDT. Seems to be a problem. It’s night (no solar) and there’s no wind. It happens!






















How do we deal with that, Al?