I admit, I had to look this one up. Charles Krauthammer on with Fox News’ Bret Baier talked about the failed Solyndra (manufactured solar panels), which received $535 Million in taxpayer monies, and the Obama administration’s involvement, and declared it “lemon socialism.” The term is generally credited to Mark J. Green, Democrat and former president of Air America Radio.
“Lemon socialism” is a pejorative term for government support of private-sector companies whose imminent collapse is perceived to threaten broader economic stability. It is not a subcategory of socialism per se; rather, it points to a corruption of free-market capitalist systems, which would normally allow defective companies (“lemons”) to fail. The most common government interventions that earn the term involve infusions of government capital, as in bailouts, and may include some government control over company decision-making, as in nationalization. The Emergency Economic Stabilization Act of 2008 in the United States has been cited as an example of lemon socialism
Seems an apt description of what is happening in government today. The government loaned Solyndra millions, knowing they would fail. The Department of Energy sat on Solyndra’s board of directors. The Office of Management and Budget made it well-known that taxpayers dollars should not support Solyndra. Obama did it anyway. Read more on the Solyndra story here.
Charles Krauthammer: Lemon Socialism (video)