“Electric-car-battery manufacturer A123 Systems Inc., the recipient of nearly $250 million in government grants, filed for Chapter 11 bankruptcy protection Tuesday.”
From the WSJ:
In a bid to jumpstart the electric-car-battery industry, the U.S. government has provided more than $1.2 billion to battery makers in the past three years. But the industry has been slow to take off. Another battery maker, Ener1 Inc., which also received a government grant, filed for Chapter 11 protection earlier this year.
There is a reason why capitalism works. Most of it deals with the freedom of entrepreneurs to take risks with their own money. In this case the government took risks with our money. Bureaucrats make lousy investments.