Mar 18, 2013
LG Chem of Holland, Michigan, promised to create 440 jobs at its battery plant, if the U.S. Dept. of Energy would pay for half of its start-up costs – 150 million dollars.
LG took the money but after two years didn’t create the 440 jobs, didn’t produce a battery that could be sold, and laid off workers instead of hiring.
So the U.S. should get its money back, right? No. The Department of Energy says that according to the terms of the deal, it has “no leverage” to get back a dime.
This is how the government covers itself when it gives away money to corporations. Simply write it in the contract – “repayment not required, regardless of how many phony promises you made.”
Wouldn’t we like to get a house or a car loan on those terms!