What happens when the state, which is not subject to the discipline of the market starts handing out “grants” or “low interest loans?” Almost invariably the result is misallocation at best and outright theft at worst.
Where there is bureaucracy there is waste. Where there is federal bureaucracy there this and more. Low level bureaucrats hand out money rained on them from on high to their buddies. In the red tape a million disappears here, and another million there, until the money that was supposed to go to the (usually poorly thought out) project is siphoned away.
This is the nature of the state. It does not change. Where the market and the discipline it imposes is removed waste and fraud are the inevitable result. It happens time after time.
Politico reports that there are 100+ Department of Energy criminal probes surrounding the “stimulus plan.”
Is there anyone who is surprised?