We’ve all heard about the Solyndra scandal, but have you heard about the Lowenstein Project? Wait, you didn’t know you had the Lowenstein “investment” in your portfolio? Didn’t know you made a loan that was never repaid? Me neither.
In an op-ed the Reason Foundation’s Harris Kenny wrote for us that landed on the pages of the Denver Post, we learn about Colorado’s version of corporate welfare gone crazy. (side note: Abound Solar will be next). Harris describes the filthy process that starts with an idea and ends with taxpayers getting hosed for millions of dollars. I find it odd that politicians discover these great “investment opportunities” and can only come up with other people’s money to use as capital…
Here’s the takeaway:
Government-issued loans are often based on insider favoritism and politics. They rarely fulfill their supposed purpose of the public good. The companies that receive government welfare are given an unfair advantage over those that don’t. Corporate welfare encourages companies to be good at politics, instead of good at business.