Monday, October 15, 2012

Solyndra and the GOP's paradoxical attack

Solyndra failed for a number of reasons--two of which the Republicans never, ever mention: Chinese product dumping and Chinese currency manipulation.

Solyndra used a newer, more efficient solar panel technology but couldn't compete against Chinese product that didn't work as well but was vastly cheaper.

It was cheaper because the Chinese government-backed companies were selling at a loss in order to drive competitors out of business--that what "dumping" means--and because the Yuan's value is fixed by the Chinese government at an artificially low value.

Now Governor Romney rails against the Chinese government for fostering product dumping and currency manipulation.

Except when it actually does it, apparently. Because Romney's attacks on the Obama administration for Solyndra's failure never ever not once mention Chinese product dumping and currency manipulation.

Isn't that interesting?

This is also an example of the limits of "free" capitalism: when it's up against state-backed competition. Unless our government acts to protect our industries from unfair competition, such marketplaces operate on a tilted playing field, where our "free" capitalism fails without support from our own government. Yes, that inefficient, evil federal government Romney rails against so much of the time.

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