Coyote Blog

Phoenix businesses add hundreds of jobs every week.  However, the only jobs that every get subsidized are in sexy businesses.  That is because the subsidies themselves make zero sense, from an economic or public policy standpoint.   The point is not to create jobs, but to create press releases and talking points for politicians and their re-election campaigns.

And there is little that is sexier to politicians spending taxpayer money to get themselves re-elected than solar and Apple computer.  Which brings us to this plant in Mesa (a suburb of Phoenix), which I am calling the Graveyard of Cronyism.

This plant was built by First Solar to build solar panels.  I would have to quit my day job and work full-time to figure out all the ways this plant was subsidized by taxpayers -- special feed-in tariffs for First Solar customers, government tax breaks for solar panel purchases, direct government subsidies and grant programs for solar panel purchases, the DOE loan guarantee program for solar... etc.  In addition, the City of Mesa committed $10 million in infrastructure improvements to lure First Solar to the site.  I can't find what economic development incentives there were but there must have been tax abatements.  In addition, the company was promised a further $20 million in economic development funds from the County, but fortunately (unlike most such deals) the funds were tied to hitting employment milestones and were never paid.  First Solar never produced a single panel at the plant before it realized it had no need for it.

More recently, Apple and sapphire glass manufacturer GT Advanced bought the empty plant from First Solar.  And again there was much rejoicing among politicians locally.  Think of it -- Two great press release opportunities for politicians in just three years for the same plant!  I never feel like we get the whole story on the development deals offered for these things but this is what we know:

Brewer and the Arizona Legislature approved tax breaks related to sales taxes on energy at manufacturing plants. The state also put the Apple/GT plant into a special tax zone that pays a 5 percent commercial property tax rate. Most Arizona companies pay a 19 percent rate this year and an 18.5 percent next.

[In addition,] Apple was slated to received [sic] $10 million from the Arizona Competes Fund for the Mesa factory. The Arizona Commerce Authority — the privatized state economic development agency which administers the $25 million sweeten-the-deal fund along with Gov. Jan Brewer — said neither Apple nor GT Advanced (Nasdaq: GTAT) have received any money.

Well, it turns out that artificial sapphire sounds really cool (a pre-requisite for crony deals) but it is not so great for cell phones.  Apple went another way and did not use the technology on iPhone 6 -- not just for timing reasons but because there are real issues with its performance.

So a second crony buys the plant and does not even move in.

What's next?  I am thinking the best third tenant at the sexy-crony nexus would be an EV battery plant, or even better yet Tesla.  It is too bad Fiskar motors went out of business so soon or they would be the perfect next crony fail for this site.

Everyone, you need to give up you CO2 emissions so that James Camperon can maintain his lifestyle:

But e.g. James Cameron apparently assumes that people won't be able to notice that he is using

3 houses in Malibu (24,000 sq ft in total - 10 times the average U.S. home), a 100-acre ranch in Santa Barbara, a JetRanger helicopter, three Harleys, a Corvette, a Ducati, a Ford GT, a collection of dirt bikes, a yacht, a Humvee firetruck, a fleet of submarines...

Nevertheless, he demands that people live with less - the same people who made him rich by watching his movies....

There simply doesn't exist any justification of the need to lower the world population that would make the life of James Cameron sustainable. It's just amazing to think about the societal atmosphere that makes it natural for him to defend these inhuman concepts.

Update:

Well, I had a number of emails asking for the specifics of my computer build, so all you non-geeks can move on.  Hopefully I will get a post up on the USA Today putting for-gods-sakes ethanol on the front page of today's paper.  Anyway, here is my computer build components:

• ASUS A8N-SLI Premium motherboard.  This basic motherboard platform is rock-solid.  The premium version mainly brings a quieter heat-pipe design to cool the mobo chipset and a software rather than hardware switch for single to dual SLI.  It is one of the better overclocking platforms, with good BIOS options.  It has a couple of quirks, probably the most important of which is that it tends not to like RAM in 4 sticks -- better to use two.  I chose not to use the newer A8N32-SLI, which is supposed to increase the bandwidth when 2 SLI cards are used.  However, I think the Nvidia chipset for this was rushed (to please Dell) and tests show its not necessarily faster, even with 2 SLI cards, than the one I bought.  Also, I wanted to shy away from bleeding edge for my first build
• AMD 64 Athlon X2 (dual core) 4400+ microprocessor.  This is the 2.2Ghz Toledo core with the larger cache.  As I mentioned yesterday, its a notch or two less fast than the top of the line, which tends to be a better value.  And the consensus opinion is that AMD is dusting Intel right now.  I got the large cache because you can always overclock but you can't overcache.  The dual core is clearly the wave of the future, and more games and programs will support it in the future.  I was a bit worried that I would have some compatibility problems at first, but I have had none, even on Star Wars Battlefront 2, which was reported to have a compatibility issue with dual core
• 2 gigs of memory from Corsair, in 2 1GB sticks.  Corsair is a top company in memory.  I can't tell you how many people struggle to overclock their PC a few percent but have too little memory.  Tests show even going from 1 to 2 gigs shows real results.  I got the Twinx-2048-4000.  I debated between lower speed (ddr 400), lower latency memory and higher speed (ddr 500) higher latency memory.  I went with the latter, hoping that it was better for overclocking, but this is one issue not well addressed online.  The answer is probably here, but I decided it would not matter that much for me.  If you go with 512K sticks rather than 1 Gb sticks there are more options for memory that is both low latency and higher ddr.
• I wanted to try my hand at overclocking, so I wanted a good CPU fan.  Zalman has a lot of great products, so I went with the CNPS9500, which looks cool too.  Its quiet and keeps the cpu ice cold.  It looks huge but it fit fine.
• I may have made a mistake on the case.  I went with an Aspire X-Navigator, which is cool looking and keeps everything cool inside but is loud.  I might next time research for a quieter case.
• I splurged and went with dual SLI, because I love games, and bought two evga 7800GT sli cards.  I never really understood the variations in their 7800GT cards - some variations of memory speed, I think.  The nvidia sli chipset right now blows anything else away - it is the ONLY choice for gaming.  A pair of GTX's would have cost me $400 more.  Again, I find the best price-value point a step or two below top-of-the-line.  I didn't realize until later that DirectX 10 will be a pretty substantial upgrade, which will require new chips to support it.  That means that if you are a gamer, you will probably want a new card in 12-18 months.  Knowing this, I certainly wouldn't pay for GTX right now and might have only gone with one rather than 2 cards.
• I bought a couple of 250Gig Seagate SATA 3gb/s hard drives and put them in a raid 0 configuration.  This makes a 500 gig hard drive that is fast as hell.  This is cheaper than buying a single 500 gig and it is faster, but it will be less reliable since data is "striped" across the two drives, so that if either fails, you lose ALL the data.  Because of this issue, I bought a smaller 160 gig drive that runs separately as a backup for my data.  By the way, this was the one issue I had with my install.  Basically I had to leave this 160 gig drive unplugged until I get windows installed on the raid 0 drives and make them bootable, or else the system would get confused.  Once windows was installed on the raid drives and was bootable, then I plugged in the third drive and partitioned it and all was well.
• Power supplies seem to be a nightmare in terms of failure rates.  I use a 650 watt Silverstone Zeus and it has been fine and it had all the cables I needed.  Note you need at least 500 watt and probably 600 if you are going dual sli.
• Other components include a fast NEC DVD read-write drive (whichever one was highest rated on newegg), a floppy drive (you HAVE to have one to load the drivers for this self build if you are using a raid drive array) and a nifty little drive that accepts all kinds of memory cards on the front panel.  And windows of course.

This article on the Corsair web site provides an outstanding walk-through of how to build and set up your PC, demonstrably sufficient for even the noob since it got me through it.  I actually found this after I bought my components so I was happy to see that the component selection in the article for a high-performance gaming box was very similar to mine.  I also have the logitech cordless keyboard and mouse shown and love those too.

Have fun.

Update:  In response to the question in the comments, this build cost about $2000, which is expensive for a desktop, except that I expect to get much longer life out of this thing with performance that stays top notch for a while and many upgrade paths.  It might have been more but several parts were on weekend sale at newegg and others had cross-promotions (i.e. if you buy the AMD procesor and the evga card you get an extra $30 off).  Also note that this is a very competitive system to gaming rigs (e.g. Alienware) costing over $4000. You could take a few steps to bring this under $1500:  One 6800 GT rather than two 7800GT graphic cards would save almost $400.  One graphics card would let you save about $50 or more in the power supply, and you could easily get a good case for $50-$75 less.  Making these subs would get you a very very good rig for under $1500.  Dropping down a notch on the CPU could save another $200.  Smaller hard drive capacity could save $100-150, though hard drives are so cheap, I think it is short-sighted not to overdo it a bit.  I still remember my first hard drive card for my original IBM PC.  It was 10 meg, and my thought was "I'll never be able to fill that much memory".  LOL.

The build time was probably 8 hours, including windows installation and disk formatting.  This includes three false starts:  one, when I thought the power supply was bad but I had just forgotten to hook up the on/off signal wire; two, when the floppy drive actually was bad and I had to run to compUSA to get a new one; and three, when I struggled, as mentioned above, to get windows installed with the hard drive configuration I had chosen.  If everything had gone smoothly, I could easily have done it in 4-5 hours.

Did I mention I love this rig?  Its like the geek version of showing up to your high school reunion in a Ford GT.