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Paying people to buy solar panels that are made in China (or cars made in Mexico, Japan, and Korea) is not an economy.
Neither is financing wars and paying for old peoples health care so that people can buy gasoline that comes from imported oil without paying for externalities.
It's hard to know who the supplier is going to be when you subsidize the buyer. It certainly is unfortunate that we have lost a lot to the Chinese on solar panel manufacturing. Subsidies have created the market that drove innovation and has made solar price competitive in many markets. FYI subsidies and laws in MD make it a great deal if you have good exposure.
We still make panels in the US, and people (e.g. Solar City/Tesla) are trying to increase that. Also, a panel installation requires a lot of work for siting, electric hookups, installation, mount hardware, etc. As the price of panels goes down, these other items will be the bulk of the cost / profit. It's good to have American companies doing it rather than waiting until some European company whips our ass on that front and starts operating in our country. You have to focus on the whole picture, not just the part that you don't like (China making more panels than the US).
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http://www.ianwelsh.net/could-obama-have-fixed-the-economy/
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