We Get Played With Free Trade

This morning, solar panel maker Solyndra suddenly closes in Fremont, and 1100 people are on the beach. This is a business President Obama visited and touted last year. With the housing market like it is, this shouldn’t be a shocker.  It does, however, raise an issue.

The Chinese are kicking our tails in solar production. The government there subsidizes both the production and purchase, to get wide distribution of them. Back in the early days of solar, 40 years ago, our government had nice tax subsidies for solar panels…I know…I had 8 of them on my roof!  We’ve seen this show before…in the 60’s and 70’s, the Japanese sold cars over here for less than they cost in Japan to take US market share. At that time, US cars were considered superior by almost everyone (remember THAT?), but they vastly increased market share by selling cheaper ones.  As one who was in the auto business selling against them, I have a pretty good frame of reference on this issue!

I can see the theoretical benefit of free trade, but it’s never happened, and never going to. Other countries always cheat, and we let them get away with it. As long as other countries play us like a violin, free trade is a myth!