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Donate   • The Problem with Increasing Energy Loan Guarantees
There has been a lot of talk in recent months on expanding the
loan guarantee for energy projects broadly and nuclear projects
specifically.      The problem with the LG program is not the
cost, per se. It is clearly set up so that the recipient has to
pay for the administration costs. And as for the likelihood of
default, the risk for nuclear seems almost nonexistent as
compared with other renewable sources. New nuclear plants will
be cranking out a valuable commodity for the better part of a
century.      The problem is that loan guarantees distort normal
market forces thus unfairly enhancing the competitiveness of the
recipient’s project and removing dollars for projects that might
otherwise get funding.      One of the basic problems with the
larger economic debate that is going on in the nation is the
misunderstanding (or at least a choice to ignore) the fact money
does not