Another State “Investment” up in smoke

Don’t you just love it when the government “invests” your money? The latest debacle in this regard is the loss of $17 million (the total loss is actually more) that the state “invested” in Advent Solar. This comes on top of a $20 million loss on Eclipse Aviation, a $9 million loss on Earthstone International, and a general failure of the state’s private equity program.

Politically-motivated state “investments” are destined to fail. Rather than wasting money to bring individual businesses to New Mexico, our political leaders should look for ways to use these resources to “invest” in lower taxes and a friendlier business climate. It may require Constitutional changes, but it is pretty clear that allowing the State Investment Council is an ineffective tool for bringing business to the Land of Enchantment.

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One Reply to “Another State “Investment” up in smoke”

  1. As long as the Governor controls the SIC, and friends of the Gov want state money for their pet projects, then the game is give to a political campaign, and the SIC will give away state money.

    Now if the parties think NM needs a race track in Raton, then campaign funds grease the way for that project.

    Remember the track down in Hobbs, set up by NM Friends of Bill? After a few years, the project, then very profitable from betters from TX coming in to have fun, was sold to a very large publicly traded gambling company for a nice profit.

    It never hurts to have political friends to help make money in exchange for pennies on the dollar campaign contributions.

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