Earlier this month, Evergreen Solar Inc. filed for chapter 11 bankruptcy protection, claiming the lower costs of Chinese competitors drove it to restructure. The Massachusetts Economic Assistance Coordinating Council, the Commonwealth board charged with overseeing MassDevelopment tax breaks to business, had previously voted May19 to end the 20-year, $15 million property tax break and terminate the $7.5 million in state tax credits for Evergreen, two months after the company shut its state-aided manufacturing plant in Devens, Massachusetts built and eliminated 800 jobs.

Adding insult to injury, Evergreen borrowed money to build a new solar manufacturing plant in China.

‘Clean-Energy’ Investments Up, but Performance Lags

According to Bloomberg New Energy Finance, new global investment in the clean energy sector (including solar) was up 27% to $41.7 billion in Q2:2011 from the prior quarter–and 22% higher than a year ago.…

“Suggesting that renewables will let us phase rapidly off fossil fuels in the United States, China, India, or the world as a whole is almost the equivalent of believing in the Easter Bunny and Tooth Fairy.”

Climate and energy alarmists war with reality. And now and again, the incentives line up for a particular alarmist to blow the whistle on some aspect of the governmental ‘cure’ to their problem. The incendiary Joe Romm, for example, trots out free-market-type arguments against carbon sequestration and nuclear (both too expensive).

Hansen on Cap-and-Trade

NASA scientist and uber-climate-alarmist James Hansen informed the climate policy debate in 2009/2010 with his blistering criticism of CO2 cap-and-trade. “The truth is, the climate course set by Waxman-Markey is a disaster course,” he said. “It is an exceedingly inefficient way to get a small reduction of emissions.…

[Editor note: Austrian-School economics is at the forefront of today’s pivotal debate over the limits of government, a debate that certainly includes public policy toward the master resource of energy.

Yesterday’s introduction of Rothbard is joined today by a tribute to “Mr. Libertarian” by  Roger Garrison, currently professor of economics at Auburn University, upon Rothbard’s death. Subtitles have been added to Roger’s tribute of 16 years ago, and he has graciously added a postscript for this republication. Enjoy on a hammock this hot summer with a glass of lemonade if you can!]

                        Murray Rothbard (1926-1995)

In the late 1960s, my interests were far removed from Austrian economics—and from any other brand of economics, for that matter. I hadn’t yet heard of Murray Rothbard and thus couldn’t even have imagined that I would be catapulted by him into the midst of what would later be termed the “Austrian Revival.”…

“The economy is not recovering…. It’s now impossible to deny the obvious, which is that we are not now and have never been on the road to recovery.”

– Paul Krugman, “The Wrong Worries,” New York Times, August 5, 2011, p. A21.

Federal energy policy is being driven by the failure of neo-Keynesian economic policy.

Stimulus spending was supposed to end the Great Recession and transform tax expenditure into additional tax revenues. Instead, we are left with both recession and broke government. Obama borrowed from the future and made the present worse. George W. did his share too.

Three Strikes: Is Keynesianism Finally Out?

Keynesian economics failed during the Great Depression (will more textbooks now admit it?). The activist approach of Herbert Hoover (the first New Dealer, according to Murray Rothbard) used the powers of government to slow the liquidation of unsound investments, narrow profit opportunities, injure international trade, and block employment.…