California to get Two 550 MW Solar Power Plants in Spite of Republicans

What Exactly Do They Have Against Creating Jobs and Lower Energy Prices?

The Wall Street Journal reports that First Solar, Inc will get about $4.5 billion in loan guarantees to help finance the construction of two large solar generating power plants in California. 

Loan guarantees are a neat way for government to help business, as long as they are done in a responsible manner.  In providing the guarantees government is in effect co-signing loans, but it is not making any direct expenditure and unless the company receiving the loan defaults, there is never any direct expenditure.  Obviously this can go horrendously wrong, as with AIG and Fannie and Freddie (interestingly enough, in those cases the Federal Government did not have guarantees in place, but backed the obligations of those companies anyway). 

This project seems ideal for such a program.  It has  investment, job creation and lower energy prices to help the economy and lower pollution to help the environment.  What’s not to like?

Well Republicans can surely find something.  For reasons almost impossible to understand

House Republicans earlier this year proposed immediately cutting the stimulus loan- guarantee program in their 2011 budget proposal, though the provision didn't become law.

The Dismal Political Economist can only assume that while Republicans certainly favor helping big business, they just do not favor supporting job creating investment in industries that do not pollute.

Yep, no pollution here, that must be it.