When the 787 billion dollar stimulus plan was passed on February 17, 2009, President Obama show cased it as the only way to get the economy moving again. He neglected to tell us who's economy.
The massive investment in renewable energy industries, like wind and solar energy was supposed to create thousands of new, "green" jobs. At that time, the national unemployment rate was 8.1 percent according to the United States Department of Labor.
The White House Council of Economic Advisers released a highly optimistic analysis of the American Recovery and Reinvestment Act, after it's signing claiming that it will meet the goal of creating or saving at least 3.5 million jobs over the next two years. As of today, December 17th, 2009, the unemployment rate stands at 10 percent.
The Department of Labor reports that the number of new unemployment claims rose to 480,000 last week, up 7,000 from the previous week. This was worse than the 465,000 that economists had expected. The four week average dipped to 467,500, the 15th straight decline.
This massive spending bill created a Clean Energy Finance Authority to provide loan guarantees and other financial support to help ease credit constraints for renewable energy investors and catalyze new private sector investment.
So far most of the jobs and money have gone to foreign countries. Of the $1.5 billion in clean energy grants handed out by the government since the first of September, 84 percent has gone to foreign wind companies. Iberdrola S.A., alone has collected 545 million through its American subsidiary, according to a story by Russ Choma, who is with the Investigative Reporting Workshop.
Foreign wind companies got 88.1% of the money and domestic companies got 11.9%. Iberdrola got 545 million, (Spain), E. On Climate & Renewables got 122 million,(Germany), First Wind got 115 million,(U.S.), Eurus got 91 million,(Japan) and Horizon EDPR got 48 million,(Portuguese). In the all others category, 89 million dollars.
Even more troubling is the fact that there are few restrictions on the grants or how they can be used. The story quotes Dan Tangherlini, an assistant sectary for management at the Treasury Department as saying "There are no restrictions on the use of the funds." He also said that the money could even be used to pay dividends to share holders or even for bonuses
In "Wherefore Art Thou, Green Obama" by Jon Entine, on The American web site, Entine reports that what ever green jobs we do get, whatever they might pay, cost a lot to create. As a candidate, Obama estimated that it would cost $30,000 to create one green job. A study by the Center for American Progress, released in 2008, estimated that each job would cost $50,000. This study didn't count jobs that might be lost elsewhere in the economy if the country shifted to alternative energy.
"The Obama administration has pointed to Spain and other European countries as a "reference" for the establishment of government aid to renewable energy to create jobs," Entine writes. He calls the real world figures sobering.
"In a study by economists at Spain's Universidad rey Juan Carlos, the Spanish green job program cost $43 billion in recent years, creating green jobs at an astounding cost per worker of $854,000. Why the high figure? These economists factored in the number of jobs that were not created by force-feeding investments into alternative energy. By diverting investments from other sectors, the study estimates that for every green job created upwards of 2.2 jobs were lost." The report indicates the United States could lose as many as 11 million jobs while creating 3 to 5 million.
Over the last two years there have been several announcements of high-profile technology intensive projects in alternative energy, funded in part by government money. The Democratic governor of Massachusetts backed a 58 million dollar incentive package for Evergreen Solar. Evergreen Solar is an energy panel maker who promised 350 new jobs and promoted itself as poster boy for the state's efforts to be a green jobs center. General Electric did something similar with subsidies in Delaware and promised 82 jobs.
Both companies didn't deliver. GE announce this fall that it is shutting down production and Evergreen Solar, who lost 167 million is shuttering operations and moving to China. Entine also reports on what he calls the great Texas Green Jobs Massacre.
"There was a burst of excitement in late October accompanying the announcement that a large scale $1.5 billion wind farm would be developed in West Texas using federal dollars. But any anticipation of the 330 American jobs that would be created was quickly over shadowed by the sobering reality that the most important components to be manufactured, 240 wind turbines, would be made in China. That's a 2,000 job windfall, courtesy of Uncle Sam."
Last night the house passed a $174 billion dollar package to stimulate job growth. Again. Attached to the bill was a $5 billion increase in tax breaks for clean energy manufacturing in hopes of contributing to job growth and expanded use of renewable energy.
In "AP story "White House promotes clean energy tax credits" by Julie Pace, she reports that "The tax credits are part of the jobs plan that President Barack Obama announced last week. If congress approves the initiative, new or expanded factories that make products such as wind turbines, solar panels, and electric vehicles would get a 30 percent tax credit. A similar $2.3 billion tax credit was included in the $787 billion stimulus plan this year."
She also quotes Vice President Joe Biden as calling the first round of tax credits an "overwhelming success" and that there were more qualified applicants than expected. Biden said a strong manufacturing sector will play a vital role in the economic recovery.
The question is how can Joe Biden say things like this with a strait face? Unless these tax credits apply only to goods and products made in America by American workers this is just more blowing the tax payer's money the green way.
Comments
When I die, I want to come back as a spanish socialist with a windmill generator plant and Obama's phone number in my back pocket.
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