President Obama Finds Another Battery Factory
We all know what kind of jobs President Obama thinks Americans should do: construction and “green” energy. This is why it seems he only visits construction sites, solar panel plants and battery factories.
Well, he’s found another battery factory (also remember, an “advanced” battery technology used for hybrid cars actually emits more pollution than a normal car battery does during manufacturing). But that aside, the market for these batteries is just not there.
President Obama gave nearly $1.2 billion dollars to American companies to help jump-start the battery business, and another $1.2 billion to foreign countries for the same thing. Of course this was part of his failed-stimulus program that was supposed to create jobs here in America, not overseas. According to the Washington Post, there just isn’t a proven market here for these batteries:
“‘The battery story is highly questionable,’ said Menahem Anderman, the founder and chief executive of Total Battery Consulting. ‘Basically, there’s really no proven market, neither electric vehicle nor plug-in hybrid electric vehicle — and there’s really no battery company in the United States that has a verified product.’”
Despite the hype and government handouts, hybrid cars have been around for a decade but only make up about 1% of America’s 250 million plus vehicle fleet. And even though the President thinks that throwing more money at these companies will somehow build demand for the product, it just isn’t true. In a couple years, America will be building three times more alternative batteries than people will want to buy.
So how does one increase demand? Well, wisdom says that you don’t force people to buy a product, but this President believes that giving government tax credits to people who buy certain products is somehow good for businesses.
Take the Chevy Volt. Only 125 were sold last month. At $40,000 a pop you can see why. Oh! But you get a $7,500 tax credit if you buy one! Unfortunately for GM, there are cheaper cars out there that get better mileage. Even GM admits that these cars won’t turn a profit for years:
“‘We can’t make money on the first Volts,’ said Troy Clarke, president of GM’s North American operations. ‘But as we get a chance to change the generations of technology, we’ll lose less and less.’”
That’s a little ridiculous considering taxpayers spent billions bailing out and subsidizing this company and for what? A failing vehicle that is supposed to save this company from ever needing another bailout?
President Obama would be wise to reduce the hurdles to job creations across all industries, instead of cherry-picking a few select companies that he thinks people should work for.