By Arnold Kling
The latest announcement about U.S. industrial policy says,
Abengoa SA… was offered a $1.45 billion loan guarantee by the U.S. Department of Energy to build a 250-megawatt solar plant in Arizona, and Abound Solar Manufacturing was offered a $400 million loan guarantee toward two plants where thin-solar panels will be manufactured.
The guarantees through the Recovery Act and other measures are expected by the awardees to create more than 5,000 jobs, according to a statement from the White House.
My guess is that most of the jobs that this policy creates are in Washington, for lawyers to lobby for these sorts of favors.
[UPDATE: Tim Carney points out that this is a bipartisan problem.]