The President's comments hit the nail right on the head with regard to the importance of the tech industry in 21st C economy. But at the same time, there is a legitimate concern about how government incentives for tech investment artificially distort the market. Having tech companies (like Solyndra) that exist solely because of a bureaucratic decision that the company should exist may (in many cases) not be doing the economy any favors in the long run. In fact, it is diverting capital and resources away from start ups the market considers better risks. Indeed, look at the auto bailouts. Ford weathered the recent economic ddownturn with its forward thinking investment in the Ford Focus and other energy efficient cars, while GMC and Chrysler went down in flames for pursuing a short-term profit motive focussing on big, gas-guzzling autos. The infusion of government cash to GM and Chrysler effectively lessened the consequences of those companies poor strategic choices, and lessened the reward to Ford for its winning strategy.
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