Listen, first, to the President's ambitious vision:
Before reviving the plan, how about an assessment, please?
In particular, how successful were those companies which received $10B+ (called "1603 funds") in creating jobs and renewable energy by building wind farms, solar projects, and other alternatives to oil and natural gas?
An article published in the Wall Street Journal answers that very question:
- When applying for stimulus funds, "environment-friendly" companies predicted they would create 100k+ jobs at 1603-funded projects. But, investigative reporters found far fewer. Some companies laid off workers; others closed plants.
- The Obama administration funneled $10.7B to 5,098 businesses for 31,540 projects. Recipients were generally reimbursed 30% of their costs upon project completion. On federal applications for 1603 funds, those businesses claimed they would create 102,883 jobs. Again, investigative reporters found far fewer. For example: ~40% of the funding ($4.3B) went to 36 wind farms. During the peak of construction, they each employed an average of 200 workers, roughly 7.2k jobs. Today, those wind farms employ ~300 people.
- In late 2010, the American Wind Energy Association lobbied to extend the 1603 program through 2011, predicting doing so would create "thousands of jobs." However, even though the Obama administration funneled $7B+ of 1603 funds to wind energy firms, actual payrolls declined to 75k in from a high of 85k in 2009.
The assessment?
Not a wise investment of U.S. taxpayer dollars.
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| Stimulus #1: Would Stimulus #2 be any different? |
While it could be argued that this particular sector of the "new economy" distorts the overall success of President Obama's economic stimulus plan, The Motley Monk would suggest that those who make this argument tread very carefully. After all, Bloomberg news reports that even in the rosiest of scenarios, U.S. taxpayers are $5B to $8B in the red for the bailout of General Motors, not counting the $15B in write offs the bailout plan allowed, for a total of between $20B to $30B in U.S. taxpayer money down the drain.
Renew the stimulus plan?
The President has gotta be kidding! U.S. taxpayers are already $16T+ in debt.
Let the discussion begin...
To read the Wall Street Journal article, click on the following link:
http://online.wsj.com/article/SB10001424052970203710704577050412494713178.html?mod=WSJ_hp_LEFTTopStories
To read the Bloomberg article, click on the following link:
http://www.bloomberg.com/news/print/2012-02-13/gm-profits-but-taxpayers-are-still-on-the-hook-shikha-dalmia.html
He doesn't want to pour more taxpayer money down the toilet!
ReplyDeleteHe wants to:
1. Constitute paying off the likes of Hoffa and the Unions who are ready to 'teach the SOB's a thing or two...'
2. Continue funding the 'green' projects of his political buddies.
3. Continue funding 'shovel ready' jobs that are not 'shovel ready' and don't create jobs.
4. Continue funding bankrupt states, like Illinois, so the Dem. state and local political hacks can keep up the charade.
5. Continue funding bloated bureaucracies like the Post Office and jobs all over DC, that keep 'his' voters 'employed.
5. Continue funding foreign energy projects that benefit his benefactors but not supporting a pipeline or offshore US drilling because he is beholding to the "greens" who could revolt against him.
6. Continue funding funding inefficient government departments and programs while threatening to cut military pay and benefits.
His 'economic stimulus' package for 2012 is designed to stimulate his re-election campaign because, even some of his supporters, are 'hoping' for some 'change' from his last stimulus package!
That sounds like "pouring money down the toilet" to me!
ReplyDeleteAh, you appreciate sarcasm...
ReplyDelete