How Many of These Alternative Energy Companies Will Be Around in Five Years

How Many of These Alternative Energy Companies Will Be Around in Five Years

By Lance Winslow

When Warren buffet and Bill Gates gave an interview with the students of the Columbia school of business they were asked about the future of jobs and the alternative energy industry. Both of these very wealthy man explained how the market would eventually weed out the weaker players, and hopefully we would have some better alternative energy choices. However, I would like to ask exactly how many of these alternative energy companies, startups, and corporations will even last for the next half decade?

Remember, in the pharmaceutical industry there were something like 1200 startups and/or new IPOs over a five or six year, and everyone was betting on the biotech industry? Hardly any of those companies ever make a profit, and only 17 of them ever turned into anything great. Now, I'm not saying that it isn't good to have 17 new strong companies in the biotech and pharmaceutical industry. I do believe that is a great thing. However, during the top of the "Dot Com" bubble, we essentially saw the same thing.

And what happened? The bubble burst, all the investors lost money, and only a few survived, in the end, it was the investors which took it in the shorts, after the big shakeout. But now, we are building an alternative energy bubble, one that is funded by the taxpayer? Since we already know that we are building the bubble, and that this bubble will obviously someday burst, and most of these alternative energy companies will go nowhere, but we also know it is the taxpayer who is going to lose in the end.

Indeed, it is even worse than that, because we are instituting a carbon tax and trade system, which will increase the price of everyone's energy, since 60% of our nation's electricity generation comes from coal-fired plants. Therefore, not only will all be investors in this sector get hurt, but every citizen that uses electricity will be damaged, and have to pay more, along with the taxpayer who is funding the bubble. Someone ought to stop everyone right now, and ask all these people what they are thinking?

Because as it stands everyone seems to be forgetting history, and even this last global economic financial meltdown was due to a bubble building, a bubble in the housing market and the home mortgage market, which was also propped up by rules and regulations from our government, all in the name of helping people own a home, albeit, even if they couldn't afford it.

If we keep making the same mistake and hoping that we will get out of Dodge, by building an even bigger bubble, then all we are really doing is keeping the game going using the definition of insanity, and forgoing the reality of unintended consequences. From a pure philosophical standpoint, and an economic one, this really makes no sense to me, and that's my take on it. Indeed, I hope you will please consider this.

Lance Winslow is a retired Founder of a Nationwide Franchise Chain, and now runs the Online Think Tank. Lance Winslow believes in good economic politics.

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