On Thursday, May 31, former Massachusetts Governor Mitt Romney stood outside the abandoned headquarters of Solyndra, a bankrupt solar company that was backed by some $500 million in federal loan guarantees, and said, “free enterprise to the president means taking money from the taxpayers and giving it freely to his friends.”
What he didn’t say is, to the Republican Party, free enterprise is exactly that.
The very next day, Konarka, a Massachusetts-based solar manufacturer, announced that it was filing for Chapter 7 bankruptcy protection and would lay off all its employees.
That marks the second bankruptcy of a solar company that was backed by Governor Romney’s administration. The other company, Evergreen Solar, declared bankruptcy in August 2011.
Maybe Obama and Romney’s administrations should have been a little more careful about who got these loans, but that’s also part of free enterprise. Romney’s experience at Bain has undoubtedly taught him that sometimes bad investments happen.
Even so, the administrations didn’t do anything wrong by making these loans. It is common practice for federal and state governments to provide loans and loan guarantees to companies in fledgling industries such as renewable energy.
It is, however, downright hypocritical for Romney and the Republicans to try to make Solyndra into a campaign issue.
At this point, the more conservative among you are probably saying that it’s not the same because “Solyndra’s chief backer was George Kaiser, an oilman who made billions of dollars and was a big donor and fundraiser for the Obama 2008 campaign.”
Or they might point to Romney’s claim that Solyndra funds were steered to “friends and family, to campaign contributors.” This claim, by the way, was debunked in detail by ABC.
But it would be hypocritical for Romney and the Republicans want to talk about steering federal funds to friends and family if they’re guilty of the same thing, right?
Does anyone remember the Silverado Savings and Loan bailout? From Wikipedia:
Silverado Savings and Loan collapsed in 1988, costing taxpayers $1.3 billion. Neil Bush, son of then Vice President of the United States George H. W. Bush, was on the Board of Directors of Silverado at the time. Neil Bush was accused of giving himself a loan from Silverado, but he denied all wrongdoing…
As a director of a failing thrift, Bush voted to approve $100 million in what were ultimately bad loans to two of his business partners. And in voting for the loans, he failed to inform fellow board members at Silverado Savings & Loan that the loan applicants were his business partners.
Neil Bush paid a $50,000 fine, paid for him by Republican supporters, and was banned from banking activities for his role in taking down Silverado, which cost taxpayers $1.3 billion. A Resolution Trust Corporation Suit against Bush and other officers of Silverado was settled in 1991 for $26.5 million.
So Neil Bush almost single-handedly destroyed Silverado Savings and Loan, costing American taxpayers $1.3 billion under the Reagan administration’s savings and loan bailout program.
…And the Republicans accuse President Obama of “crony capitalism”?
What Romney should have said is, “free enterprise to the Republicans means taking money from the taxpayers and giving it freely to their families.”