It’s hardly a surprise that the economic policies of President Obama haven’t gotten the county out of the economic doldrums; he and his administration have proved themselves to be absolutely rotten capitalist investors:
Smith Electric Vehicles has suspended productionSmith Electric Vehicles, a centerpiece of the Kansas City area’s once high hopes for a wave of green industries, quietly suspended production at the end of 2013 because of a shortage of cash.
By Steve Everly | The Kansas City Star | April 4, 2014
The move was disclosed in a report for the last quarter of 2013 filed with the U.S. Department of Energy, which in 2010 awarded the company a $32 million grant. Smith Electric said it stopped delivery of its Generation 2 trucks and vans because of the “company’s tight cash flow situation.”
The company didn’t respond to requests for comment. The Energy Department in an email said it is working to ensure that a demonstration project that is supposed to have 510 Smith Electric vehicles placed in fleets across the country will be successfully concluded.
“DOE continues to work with Smith Electric on the path forward for the remaining vehicle production,” the federal agency said Thursday in the email.
Smith Electric, which would eventually have about 100 employees, arrived in Kansas City in 2009, setting up offices and a production facility near Kansas City International Airport. It marketed its electric vehicles to businesses that make deliveries and snagged some notable customers, including Coca-Cola, Staples and Frito-Lay.
Read more here.
Smith Electric was a green energy company grant recipient from the American Recovery and Reinvestment Act of 2009, the stimulus program which was supposed to hold unemployment to a maximum of 8%. It looks like the economic judgements of the Administration concerning Smith Electric were just as solid as their economic judgements about he performance of the stimulus plan as a whole.
In other words, $32 million, $32 million that the Obama Administration borrowed and will still have to pay back, with interest, was just urinated away. The $32 million is now gone, shot away, blown, wasted, but the $32 million debt that the United States incurred, that still exists.
It is no surprise, at least not to your Editor, that so many of these “investments” under the stimulus program have turned out bad: these investments were being decided upon by people with little economic understanding, and even less business experience, and basing their decisions on how well the grant application proposals were framed, and with a political eye looking for a politically correct, green investment.
President Obama visited the Smith plant in 2010, and said, “You’re setting a model for what we need to be across this country.” Well, it seems that Smith has pretty much set the model for the economy under this President, so I guess he got his statement right.
Part of Smith Electric’s problems stem from increased competition from hybrid and natural gas powered vehicles. Those are the types of technologies which private companies, using private investments, have pushed.
A solid investment rule: if President Obama and his Administration have supported any particular company or business, run, run away from them. Do not invest in them, and if you already have stock in them, sell!