Just for good measure: Another green-stimulus recipient lays off workers

posted at 3:21 pm on October 15, 2012 by Erika Johnsen

I missed this last week, but hey, who doesn’t love being regaled with yet another example of the many ways in which the government’s unceasing market interference continually goes awry? The federal government never seems to tire of fancying itself a venture capitalist with our tax dollars, no matter how many instances of hilarious ineptitude are thrown back in their face. (As ever, I only laugh to keep from weeping.)

On Friday, Reuters reported that a foreign wind manufacturer with plants in the United States has decided to lay off upwards of 800 workers, due largely to uncertainty over the looming fate of the wind production tax credit. (Sidebar: How is it that President Obama seems to be against offshoring on principle when it comes to Mitt Romney’s business investments; but when it comes to foreign companies offshoring jobs to the United States, it’s suddenly perfectly okay? I merely point out the logical inconsistency in promoting a free and open global economy, hem hem.)

Danish wind turbine maker Vestas said the impending expiry of a U.S. tax credit had exacerbated a fall in orders for next year, forcing it to make more than 800 job cuts in the United States and Canada so far this year.

With the Production Tax Credit (PTC) on renewable energy set to expire at the end of the year, Vestas Wind Systems A/S had previously said it could be forced to lay off a total of 1,600 employees in North America if the scheme is not renewed.

Vestas, which is battling the effects of government austerity measures in various countries, said the 800 staff cuts so far this year represented 20 percent of its North American workforce.

The kicker being that Vestas was the recipient of $50 million in tax credits, and Department of Energy Secretary Steven Chu hailed the company as yet another poster child of green job progress back in 2010. And I quote:

I also want to thank Vestas for hosting us. Vestas’ wind manufacturing operation in Colorado is an example of the economic opportunities in the clean energy sector. Vestas has invested $1 billion in manufacturing facilities in Colorado, including in Pueblo, where it is building the world’s largest wind tower manufacturing facility.

Once these facilities are fully operational, Vestas has said they expect to employ approximately 4,000 people in the U.S., including 2,500 in Colorado. The American Recovery and Reinvestment Act is helping finance this expansion by awarding Vestas $50 million in clean energy manufacturing tax credits.

The wind industry has been on the receiving end of the production tax credit for almost two decades now, plus other means of government coddling, and they still can’t get it together on their own competitive merits. Who for goodness sake honestly “expected” that Vestas would be a paragon of productive jobs? When you throw that onto the ash heap of the Obama administration’s other recent green-energy messes, all of this unbridled bureaucratic optimism at the expense of our tax dollars has already shot way past ludicrous — but don’t worry, it’s most certainly not political. It’s all for the sake of safely securing our “green-energy future,” or whatever.


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Good money after bad – and all of it ends up in the pockets of the cronies and bundlers.

ManlyRash on October 15, 2012 at 3:23 PM

Danish wind turbine maker Vestas said the impending expiry of a U.S. tax credit

All you need to know, right there.

A bet there’s a couple of US Ambassadors wondering if they’re eligible for U.S. tax credits.

BobMbx on October 15, 2012 at 3:25 PM

the choomer is a loser along with his sycophants, only stands to reason that he picks losers…birds of a feather and all…

RedInMD on October 15, 2012 at 3:26 PM

The economics of wind are just pathetic no matter what end of it you’re talking about.

Once you go down that road, you’re in permanent subsidy territory.

JEM on October 15, 2012 at 3:27 PM

What was Hussein’s share of the kickbacks ?
Did he extract it in advance ?

burrata on October 15, 2012 at 3:28 PM

I can’t remember where I read it recently but…

Subsidies are government bribes to private companies to make bad business decisions.

gwelf on October 15, 2012 at 3:29 PM

Danish windmills… Two birds. That’s going to solve both our energy and economic problems. NOT!

anotherJoe on October 15, 2012 at 3:29 PM

but there’s a huge recovery!!!
/Michelle

ted c on October 15, 2012 at 3:29 PM

No problem, just omit a few states in the next labor report to make up for it.

Axeman on October 15, 2012 at 3:30 PM

Medieval technologies won’t actually solve modern problems, unless the problem is that government cronies need more money. In which case, medieval technologies can handle that age-old dilemma just fine.

Lily on October 15, 2012 at 3:30 PM

Good money after bad – and all of it ends up in the pockets of the cronies and bundlers.

ManlyRash on October 15, 2012 at 3:23 PM

…I blame the MSM for all of this as much as I do JugEars and his administration…they don’t hold them accountable for ANYTHING!

KOOLAID2 on October 15, 2012 at 3:31 PM

Department of Energy Secretary Steven Chu hailed the company as yet another poster child of green job progress back in 2010.

Poster Child: Economic Recovery. “Have You Seen Me?”

apostic on October 15, 2012 at 3:33 PM

i think it is fair to say that this country is in the hands of a kakistocracy…the stupidist, most corrupt, and generally the worst of men at the top

of course this reaches far beyond obama. from germany

Filling the void left by fossil fuels and nuclear power however has already placed a strain on existing capacity in the national grid. During a cold snap in February last year the pressure on electricity capacity in the Hamburg region pushed the grid to breaking point and forced some heavy industry plants to shut down.

barry and his cabal can hardly wait until we get rid of coal, and oil.

and if we have blackouts and industries shut down…well, change is hard

r keller on October 15, 2012 at 3:35 PM

Department of Energy Secretary Steven Chu hailed the company as yet another poster child of green job progress back in 2010

Marxist ass hole, all hat and no cattle Chu, thinks gasoline should cost $10.00 to $20.00 per gallon… Hopeful under a Romney administration he will become former, and now inhabiting a prison cell, Department of Energy Secretary.

Joe Biden, Paul Ryan and Bibi’s “Red Line” time line.

SWalker on October 15, 2012 at 3:38 PM

y said it could be forced to lay off a total of 1,600 employees in North America if the scheme is not renewed.

Scheme. That sums it up.

Matticus Finch on October 15, 2012 at 3:41 PM

And it looks like the CA Energy Department was double paid from the stimulus about $650 million, they recieved it twice and didn’t notice. Great. Public sector workers. You have to hire the next name on the list, no questions asked.

Fleuries on October 15, 2012 at 3:43 PM

Well don/t ya see, if you put all the wind generators out in the seas, with the salt water, the waves, the storms the long distance to them, the need for boats to take the crews, just think of the union jobs to be created.

It is simple if you just lie hard enough.

APACHEWHOKNOWS on October 15, 2012 at 3:47 PM

Heh

Schadenfreude on October 15, 2012 at 3:48 PM

This is what happens when the “You didn’t build that” crowd takes Econ. 101

Jabberwock on October 15, 2012 at 3:52 PM

*************** Alert ******************

Mitt Romney raises $170 million in September; President Obama brings in near-record $181 million – @nytimes

37 mins ago from thecaucus.blogs.nytimes.com by editor
==========================================================

October 15, 2012, 3:01 pm

http://thecaucus.blogs.nytimes.com/2012/10/15/romney-raises-170-million-to-finance-final-push/

canopfor on October 15, 2012 at 3:55 PM

Is it appropriate to say that Obama is the Don Quixote of US Presidents?

BobMbx on October 15, 2012 at 3:55 PM

If Obama gets reelected perhaps he can get America’s lights to go out before Germany’s.

GaltBlvnAtty on October 15, 2012 at 4:00 PM

Pueblo, my childhood home town. A great place to be *from*. Vestas even pays for an onsite chiropractor for the workers (2 days/week)…how do I know that? My brother’s the chiropractor…he said he’s going to vote for Romney even though he’ll probably lose that job…but looks like he will lose it regardless.

kirkill on October 15, 2012 at 4:01 PM

Subsidies are government bribes to private companies to make bad business decisions.

gwelf on October 15, 2012 at 3:29 PM

How topical! Right now the City of Houston is going on a huge push for “affordable housing”. So I download some information from the City’s website detailing all the 2011 proposed projects and the amount of funding and tax abatements for same. I take this to my local neighborhood meeting with a City Councilman and 3 of the faces of the developer of a housing project going up at the end of my street. After being told this a public/private joint venture costing $18.5 million I raise my hand to ask the question.

My question “So if this public/private partnership is going to invest $18.5 million in my neighborhood, why does this sheet show the city providing a $2.5 million grant and a $15.4 million tax abatement? That looks like an 86% public infusion into the project”

Answer I got “No, No, No!! we’re not getting $15.9 million from the city, we’re getting a $1.6 million tax write off from the IRS for 10 years!”

Then they excoriated Chase Bank for profitting from the arrangement. Nobody from Chase was in attendence to respond.

DanMan on October 15, 2012 at 4:01 PM

Answer I got “No, No, No!! we’re not getting $15.9 million from the city, we’re getting a $1.6/year million tax write off from the IRS for 10 years!”

The point is they were dragged kicking and screaming to admit it was even subsidized housing and claimed it was only 9% subsidized. I did the math and it comes to about $950/month per unit average over the ten years. 100% subsidized housing with no notice given. And they dug up a neighborhood park to mitigate for flooding considerations.

DanMan on October 15, 2012 at 4:06 PM

********************* Alert Part Deux **************

Massachusetts: Elizabeth Warren raises $12.1 million to Scott Brown’s $7.45 million in Senate race – @rollcall

5 hours ago from atr.rollcall.com by editor
================================================

http://atr.rollcall.com/massachusetts-elizabeth-warren-raises-12-1-million-to-scott-browns-7-45-million/

canopfor on October 15, 2012 at 4:11 PM

Vestas breaks wind and taxpayers eat it.

docflash on October 15, 2012 at 4:25 PM

Danish wind turbine maker Vestas said the impending expiry of a U.S. tax credit

All you need to know, right there.

A bet there’s a couple of US Ambassadors wondering if they’re eligible for U.S. tax credits.

BobMbx on October 15, 2012 at 3:25 PM

And a Russian company was to receive $600 MILLION last year, the deal “fell through” eventually. Luckily for us.

I am guessing Russians refused to pay the kick back requested.

riddick on October 15, 2012 at 4:29 PM

“Follow the Green”

aka follow the money

APACHEWHOKNOWS on October 15, 2012 at 4:32 PM

Dog bites man. The real surprise might be if one of these pay-to-play kickback Democrat money laundering operations were to actually succeed / turn a profit.

rayra on October 15, 2012 at 4:34 PM

I am convinced that all of these “Green Energy” projects, from Solyndra to Vestas are nothing more than a money laundering scheme designed to funnel taxpayer’s money through failing businesses and into Obama’s (and his sycophants) pockets.

It’s exactly the same way that the mob launders its money. Start up a business, “invest” money into it, gin up a ton of fake receipts/bills/expenses, then “pay” them and declare the business bankrupt, or maybe have an accidental “fire”, etc.

TKindred on October 15, 2012 at 4:36 PM

The wind industry has been on the receiving end of the production tax credit for almost two decades now,

Wind: The energy source of the future for the past 20 years.

PackerBronco on October 15, 2012 at 4:46 PM

Now the monster fiascos in California are shut down several months 2 times a year during bird migration.

In Kansas the Sierra Club is going on alert. The fans interfere with family planning for the Lesser prairie Chicken.

seven on October 15, 2012 at 4:53 PM

As Mitt said “People talk about picking winning and losers. You just pick losers!”

Turtledove on October 15, 2012 at 5:38 PM

Dog bites man. The real surprise might be if one of these pay-to-play kickback Democrat money laundering operations were to actually succeed / turn a profit.

rayra on October 15, 2012 at 4:34 PM

You’re making a huge mistake in assuming these grafts are meant to succeed in the market place.

They do succeed, though, in transferring huge amounts to off shore accounts, at a rapid pace. Why work when you get all that money that will last you and your family for generations.

riddick on October 15, 2012 at 5:51 PM

Now the monster fiascos in California are shut down several months 2 times a year during bird migration.

seven on October 15, 2012 at 4:53 PM

I rarely see CA wind farms at full capacity, throughout the year, not just twice a year. Whether the one by Livermore or those in the desert spanning CA/NV corridor any time you drive by all you see is a small number of turbines on, at best.

riddick on October 15, 2012 at 5:53 PM

The definition of insanity?
The economic wasteland of Michigan wants to put wind and solar energy in its constitution. 25% by 2025. And our coward of a Governor (the guy who refuses to consider right-to-work legislation because it’s an ‘unnecessary irritant’ won’t even speak up against it. Listen for the flush is these constitutional amendments pass.

AmeriCuda on October 15, 2012 at 6:20 PM

This is yet another example of nothing more than a misunderstanding of terms. The term ‘Green Energy’ refers to the taxpayer dollars that so much ‘energy’ has been expended to bilk us out of, not some mystical, magical, non-fossil-fuel newfangled type of energy you ninnies! So there’s really nothing to see here – now get back to work expending energy to keep those ‘Green’backs flowing! Spread the wealth around!

ghostwalker1 on October 15, 2012 at 6:41 PM