The bankruptcy of solar panel manufacturer Solyndra has been resonating across America because of the large amount of taxpayer money at stake – $527 million, with the government in a subordinated position. If the deal wasn’t such an affront to citizens, it would be laughable.

Pundits are pinning the mess on President Barack Obama, and his administration clearly deserves much of the blame. But to be clear, he didn’t invent the concept of “crony capitalism,” in which the government officials put taxpayers at risk for ventures sponsored by their private sector cronies. And despite Tea Party allegations, Democrats haven’t monopolized the game. It has become an epidemic within both parties.

Say what? It never happens here!

Many people probably share that belief. In fact, however, it has been rampant in our own area, particularly in northern Minnesota. One prime example is the proposed Excelsior power plant, in which the vast majority of risk lies with the public sector, thanks to gracious support by former Sen. Norm Coleman, a Republican. As a proportion of the total development cost, virtually no private capital is on the table. Another example is Great Lakes Aquarium, in which federal money was used to leverage state money and state money was used to leverage local money etc. etc. etc. That plan was promoted by former Rep. James Oberstar and supported by most DFL members of the Duluth delegation. Private financial support paled in comparison.

The Soyndra situation has inspired a loud outcry against government, as it should. There’s no excuse for the public sector to be on the hook for a half-billion dollars for any private project – especially an unproven startup designed to be an ideological poster child for green energy.

But the private sector also is to blame. These practices are little more than corporate welfare. Taxpayers take all the risk while so-called “entrepreneurs” draw big salaries and have little to lose financially because they have virtually no skin in the game.

Enough is enough. There should be much stricter limits on government participation in private projects. At times, there’s a need for loan guarantees, but not to the point in which taxpayers are the primary risk takers. That should remain the role of private investors. Free enterprise has been diluted too much by public money.

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