Originally posted by: Fern
Originally posted by: giantjoebot
Economic Stimulus Idea
I have an idea that would help our countries economy grow through investing in solar panels.
-snip-
Basic economics shows that if you increase the demand companies will increase production and the price will drop. So this will make solar panels cheaper, and stimulate the American solar panel industry. The United States could become the world leader in solar panel production.
Third, it will reduce energy consumption, which should reduce energy costs for everyone else.
"Basic economics show.."
Stop right there. OP, that's your problem with this idea. Under this assumption increasing demand for oil/gasoline would bring a price drop, but it doesn't does it?
Why is that? Because your "basic economics" stuff doesn't take into account limited resources.
Read this. The problem hasn't been a lack of demand for (photovoltaic) solar panels, rather the demand has been vastly outstripping supply. So your poposal to increase demand is misplaced IMO.
We've just come through a period where the cost of processed silicon for use in (photovoltaic) solar panels became 10 times more expensive because of demand exceeding supply.
New processing plants are soon coming on-line, ONLY if those have excess capacity should anybody even consider stimulating demand.
The ecess demand over the last several put many here in the US out of work, quite the opposite of your objective. As the demand outpaced the supply, those contractors in the US just couldn't get product to install, business fell and people went unemployed (and worse). More demand surely won't help increase jobs.
BTW: energy consumption won't drop. It might
shift the source of energy
generation, but it won't affect levels of consumption. We may need fewer increases in coal generated energy to meet increased consumption, but that's it.
Fern