Just when you thought the news couldn’t get any more absurd on the green energy front, there comes word that the Obama administration’s Department of Energy authorized a loan to a steel firm. From Russia.
Russian billionaire Alexei Mordashov, ranked in the top 50 on Forbes’ wealthiest people in the world at around $19 billion net worth, applied to the DOE for a green subsidy to assist with Government Motors manufacturing. And Obama had no problem paying him. With other people’s money.
Mordashov, the CEO of Severstal, controls nearly 82% of the firm’s shareholder capital. Recently, Severstal sold other assets in the U.S. to shift production to Michigan, drawing out even further questions regarding the loan’s necessity and thus, political motivation.
The giant Russian firm Severstal was awarded the contract to revamp the dilapidated Rouge steel mill in Dearborn, Michigan, home of huge out-of-control unions and big-mouthed communist millionaires. Specifically, the firm’s subsidiary Severstal North America, the fourth largest steel producer in the country, is in charge of executing the contract.
While business publications are concentrating on the economics of the exchange, arguing that it was an unnecessary waste of taxpayer money, we need to take a more concentrated look at the ethics.
Green energy subsidies are grotesque in and of themselves, and there is no excuse for them at all. Ever. The market will allocate scarce resources using pricing guided by demand and supply, which makes all the green hysteria about running out of resources obsolete. In other words, the currently cost-uncompetitive green technologies could become competitive, eventually, regardless of what happens to our precious planet.
Whether or not there was a market demand, why is the government trying to fill it? Why is our government loaning our money to foreign firms and governments? Since when did the U.S. government itself become an investment bank?
Since green energy arrived on the scene, that’s when. If we don’t so something serious about rebuffing environmentalism, our country will be completely subverted by foreign governments and corrupt politicians.
The Severstal case is just one of many more to come, especially if the Democrats remain in charge.
As posted on Political Crush.