Great bit of journalism here by Michael Lewis. Based on personal experience, I'm skeptical of technocrats too, but this seems to be a serious issue and shows in some instances they are a necessary evil. I'll be curious to see CID's take on the piece.
Here's a couple of examples of the good things that come out of the D.O.E.
By early summer I had spoken with 20 or so of the people who had run the department, along with a handful of career people. All of them understood their agency as a powerful tool for dealing with the most alarming risks facing humanity. All thought the tool was being badly mishandled and at risk of being busted. They’d grown used to the outside world not particularly knowing, or caring, what they did—unless they screwed up. At which point they became the face of government waste or stupidity. “No one notices when something goes right,” as Max Stier put it to me. “There is no bright-spot analysis.” How can an organization survive that stresses and responds only to the worst stuff that happens inside it? How does it encourage more of the best stuff, if it doesn’t reward it?
The $70 billion loan program that John MacWilliams had been hired to evaluate was a case in point. It had been authorized by Congress in 2005 to lend money, at very low interest rates, to businesses so that they might develop game-changing energy technologies. The idea that the private sector under-invests in energy innovation is part of the origin story of the D.O.E. “The basic problem is that there is no constituency for an energy program,” James Schlesinger, the first secretary of energy, said as he left the job. “There are many constituencies opposed.” Existing energy businesses—oil companies, utilities—are obviously hostile to government-sponsored competition. At the same time they are essentially commodity businesses, without a lot of fat in them. The stock market does not reward even big oil companies for research and development that will take decades to pay off. And the sort of research that might lead to huge changes in energy production often doesn’t pay off for decades. Plus it requires a lot of expensive science: discovering a new kind of battery or a new way of capturing solar energy is not like creating a new app. Fracking—to take one example—was not the brainchild of private-sector research but the fruit of research paid for 20 years ago by the D.O.E. Yet fracking has collapsed the price of oil and gas and led to American energy independence. Solar and wind technologies are another example. The Obama administration set a goal in 2009 of getting the cost of utility-scale solar energy down by 2020 from 27 cents a kilowatt-hour to 6 cents. It’s now at seven cents, and competitive with natural gas because of loans made by the D.O.E. “The private sector only steps in once D.O.E. shows it can work,” said Franklin Orr, a Stanford professor of engineering who has just finished a two-year leave of absence, while he oversaw the D.O.E.’s science programs.......................
http://www.vanityfair.com/news/2017/07/ ... hael-lewisRight away he faced the hostility of right-wing think tanks. The Heritage Foundation even created its own budget plan back in 2011 that eliminated ARPA-E. American politics was alien to the Indian immigrant; he couldn’t fathom the tribal warfare. “Democrat, Republican—what is this?,” as he put it. “Also, why don’t people vote? In India people stand in line in 40 degrees Celsius to vote.” He phoned up the guys who had written the Heritage budget and invited them over to see what they’d be destroying. They invited him to lunch. “They were very gracious,” said Majumdar, “but they didn’t know anything. They were not scientists in any sense. They were ideologues. Their point was: the market should take care of everything. I said, ‘I can tell you that the market does not go into the lab and work on something that might or might not work.’ ”
Present at lunch was a woman who, Majumdar learned, helped to pay the bills at the Heritage Foundation. After he’d explained ARPA-E—and some of the life-changing ideas that the free market had failed to fund in their infancy—she perked up and said, “Are you guys like DARPA?” Yes, he said. “Well, I’m a big fan of DARPA,” she said. It turned out her son had fought in Iraq. His life was saved by a Kevlar vest. The early research to create the Kevlar vest was done by DARPA.
The guys at Heritage declined the invitation to actually visit the D.O.E. and see what ARPA-E was up to. But in their next faux budget they restored the funding for ARPA-E. (The Heritage Foundation did not respond to questions about its relationship with the D.O.E.)
As I drove out of Hanford the Trump administration unveiled its budget for the Department of Energy. ARPA-E had since won the praise of business leaders from Bill Gates to Lee Scott, the former C.E.O. of Walmart, to Fred Smith, the Republican founder of FedEx, who has said that “pound for pound, dollar for dollar, activity for activity, it’s hard to find a more effective thing government has done than ARPA-E.” Trump’s budget eliminates ARPA-E altogether. It also eliminates the spectacularly successful $70 billion loan program. It cuts funding to the national labs in a way that implies the laying off of 6,000 of their people. It eliminates all research on climate change. It halves the funding for work to secure the electrical grid from attack or natural disaster. “All the risks are science-based,” said John MacWilliams when he saw the budget. “You can’t gut the science. If you do, you are hurting the country. If you gut the core competency of the D.O.E., you gut the country.”