Posted by richardandtracy on 06/04/2018 21:41:42:
With subsidy rates tumbling, it is no-longer about the subsidies. If you are stupid enough to rely on subsidies, you are basing a business plan on the word of a politician. Politician's words are worth the water they are written on. If there is a subsidy it needs to be the icing on the cake, with a sound business underneath. Subsidies can be withdrawn at a moment's notice – as they were for solar plants in the UK. The withdrawal of subsidies has not stopped solar farms, because they are economically viable without subsidies. There is a community funded one up the road from me, started after subsidy withdrawal, and most local residents are now getting cheaper power because of it, and the farm is still making money.
If it's all about making money, where is the harm in it. It's the way capitalism incentivises people. But relying on subsidies is the best way of destroying your business because it puts your business in the hands of those who have nothing to lose when the political wind changes.
Regards
Richard
Richard, I disagree with you. You are writting how things *should* work, unfortunately they are working entirely different and we are no longer living in capitalism.
Subsidies are extremely important for businesses now because they are one of last remaining lifelines for them.
So lets beging with our Western banking sector.
Do you really believe that it would still exist in current form without *subsidies* from taxpayer following Lehmann Brothers collapse?
Now look on all these European projects. There are subsidies, EU funds everywhere. Any green, less green and not green at all but politically well connected entity will get EU subsidies for some esoteric green projects.
The same holds true with entities promising innovation. There are countless subsidies there, owners and managers are getting rich enough to buy mansions, luxurious cars and porn star girlfriends but hardly any innovations are coming out of that. One time I wanted to buy an item from engineering company which is thriving on subsidies. Purchasing procedure was so complex that I have realized that I have incurred more cost on this company than any possible profit they could make by selling me ordered item. I have asked manager over the phone why it is so and he was surprisingly honest. I was advised that they are living off EU subsidies, they may not sell anything at all as long as they are keeping up with production of documents as required by Brussels and that it *is* their business model. I have asked "what then?" Answer was "Then we will be rich so we can close down or apply for grants in another project".
Doing business in an honest way is long time gone. Now we are left with fraud, ripoffs, corruption, subsidies etc. This is last show in town before lights go off.
Capitalism no longer exists.
Martin
Edited By Martin Dowing on 06/04/2018 22:25:11