ABC News Story: Abound Solar Company in Colorado, recipient of $400 million dollar load from the federal government, may go out of business. Fitch, the rating agency, gave Abound low marks which were ignored by the feds prior to the granting of the loan. Fitch reported that the company’s technology is not advanced enough to compete with its competitors. Now Abound is laying off 70% of its workforce, 300 people, in hopes that it can stay in business. They have also stopped building a factory which was meant for expansion because sales are poor.
Now this brings up the question again of why the government keeps pouring taxpayers’ money into losing ventures. It would be one thing if the feds were financing solar research; however, it is another thing to continue to finance business ventures. The government cannot even run the Post Office and make a profit. This is why critics scream that the Obama Administration is running up the deficit. How can a failing company repay a loan when their expenses exceed their revenues? Oops, that sounds like a description of the federal government and its ever-expanding deficit.