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Republicans Join Democrats to Save Corporate Welfare (Again)

June 8, 2012 @ 1:29 pm
Posted by Tad DeHaven

Rep. Tom McClintock (R-CA) introduced three amendments to the recently passed Energy & Water appropriations bill that would have eliminated a slew of business subsidies at the Department of Energy. Unfortunately, House Republicans once again teamed up with their Democratic colleagues to keep the corporate welfare spigot flowing.

From The Hill:

The largest spending cut proposal came from Rep. Tom McClintock (R-Calif.), which would have eliminated the Energy Efficiency and Renewable Energy account at the Department of Energy and used the $1.45 billion in savings toward deficit reduction. Like other Republicans, McClintock argued that this account needlessly spends money on questionable private investments that have not led to any measurable returns. But the House rejected McClintock’s amendment in a 113-275 vote, in which 113 Republicans voted for it but 107 Republicans joined every Democrat in opposition.

From a second article from The Hill:

Rep. Tom McClintock (R-Calif.) proposed ending all nuclear energy research subsidies to private companies, which would have saved $514 million and used that money to lower the deficit. But the House rejected that amendment in a 106-281 vote that divided Republicans 91-134. McClintock also proposed language cutting fossil energy research subsidies, which would have saved $554 million. But the House killed that amendment 138-249, as Republicans split again 102-123.

A few comments:

First, Democrats voted overwhelmingly to continue to subsidize commercial interests. And here I thought Democrats were concerned about the have and have-nots.

Second, Rep. McClintock deserves a round of applause for his efforts. These votes speak volumes about a member’s beliefs about the proper role of the federal government. A lot of members—especially Republicans—talk a good game when it comes to spending, limited government, free markets, etc. However, when the time comes to put their money where their mouths are, many choose to instead put other people’s money in the mouths of special interests.

For those taxpayers who are interested in seeing how their member voted, the following are the roll call tallies for McClintock’s amendments:

[See here for more on why energy subsidies should be eliminated.]

Update: Steve Ellis from Taxpayers for Common Sense alerted me to an amendment introduced by Dennis Kucinich (D-OH) and McClintock that would have shut down the Department of Energy’s Title 17 loan guarantee program. That’s the program that gave us Solyndra. The amendment failed 136-282 with 127 Republicans joining 155 Democrats to defeat the amendment. That the Republican-led House couldn’t get rid of the program that begot Solyndra is about as low as it gets.

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Green Graft: One of the Best Breakdowns of Green Energy Crony Capitalism We Have See

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I feel like I have to say this periodically as we highlight the massive corruption in Obama’s various “green energy” initiatives. We like alternative energy. We think it has an important place in the future of energy. However, we are not for the subsidization of these technologies and we are certainly not for the extensive “green graft” we have seen under the current presidential administration.

The attached (short) article does a good job of summing up some of the most egregious examples of green graft.

(From The American Thinker)

“ Let’s turn our attention to SolarReserve. The DOE gave a $737-million loan for SolarReserve to build its Crescent Dunes project near Tonopah, NV. SolarReserve’s list of “investment partners” includes Pacific Corporate Group (PCG) Clean Energy & Technology Fund (East) LLC, whose number-two man is Ronald Pelosi, a San Francisco politico who just happens to be Nancy Pelosi’s brother-in-law.”

Click here for the story.

Related Posts

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Green Firms Get Fed Cash, Give Execs Bonuses, Fail

Green Firms Get Fed Cash, Give Execs Bonuses, Fail – ABC News.

CAGW Names Energy Sec. Steven Chu 2011 Porker of the Year

image(Washington, D.C.) – Today, Citizens Against Government Waste (CAGW) announced the results of its online poll for the 2011 Porker of the Year.  Department of Energy Secretary Steven Chu won with 43 percent of the vote.  Second place went to Sen. Harry Reid (D-Nev.) with 27 percent, and third-place honors were awarded to Rep. Howard “Buck” McKeon with 16 percent.  Honorable mentions go out to Rep. Rosa DeLauro (D-Conn.), Sen. Claire McCaskill (D-Mo.), and National Park Service Director Jonathan Jarvis.

Sec. Chu’s weak oversight of DOE’s loan guarantee program (LGP) resulted in huge losses to taxpayers when solar panel manufacturer Solyndra, the recipient of a $535 million loan guarantee, filed for bankruptcy in September, 2011.  Solyndra was granted the $535 million loan through a green energy technology section of the LGP, which received a massive increase in funding on the 2009 stimulus package.  The LGP program itself has been the subject of three Government Accountability Office (GAO) reports since its inception, all detailing its management weaknesses, arbitrary selection process, and vulnerabilities to manipulation and politicization.

To make matters worse, the Department of Labor (DOL) announced that Solyndra’s former employees qualify for federal aid packages worth $13,000 each under DOL’s Trade Adjustment Assistance (TAA) program, which compensates and retrains American workers who can prove that their jobs were lost as a result of foreign competition.  The TAA benefits far exceed normal unemployment benefits.  The DOL granted TAA to Solyndra’s employees by accepting the company’s claim that it went belly up as a result of unfair competition by Chinese solar panel manufacturers, rather than from mismanagement by company executives.

Unfortunately, Solyndra was not Sec. Chu’s and DOE’s only ill-fated LGP recipient.  Beacon Power and Evergreen, Inc., both of Massachusetts, along with Ener1 of Delaware and SpectraWatt of Oregon, have filed for bankruptcy after receiving DOE loan guarantees.  In addition, Fisker Automotive, which was awarded a $529 million loan guarantee, announced layoffs at its Delaware plant after the government halted payments due to “delays” in its production schedule.  A July, 2010 GAO report concluded that the LGP lacked clear goals and failed to hold all applicants to the same standards.  GAO said that the LGP “has treated applicants inconsistently, favoring some and disadvantaging others,” and that “some applicants … receive conditional commitments before incurring expenses that other applicants had to pay.  It is unclear how DOE could have sufficient information to negotiate conditional commitments without such reviews.”

“Sec. Chu dismissed numerous warning signs that the LGP was a ticking time bomb,” said CAGW President Tom Schatz.  “The dramatic program expansion in 2009 and the continued funneling of taxpayer dollars toward poor investments reeks of poor management and crony capitalism, since Solyndra’s major investors were among the President’s largest campaign donors.  If this is the Obama administration’s idea of how America can ‘invest’ in its economic recovery, taxpayers would much rather keep the money and do it themselves.”

For acting as if winning a Nobel Prize in physics also magically confers the title of venture capitalist, and for frittering away taxpayers’ hard-earned money, DOE Sec. Steven Chu is CAGW’s 2011 Porker of the Year.

Citizens Against Government Waste is the nation’s largest nonpartisan, nonprofit organization dedicated to eliminating waste, fraud, abuse, and mismanagement in government.  Porker of the Year is a dubious honor given to a lawmaker, government official, or political candidate who has shown the most blatant disregard for the interests of taxpayers throughout the year.

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If Obama Loses, It Will Be Because Of This One Chart

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James Pethokoukis, American Enterprise Institute

In his State of the Union response the other night, Indiana Gov. Mitch Daniels neatly summed up Mitt Romney’s (who has a roughly 90 percent chance of being the GOP nominee according to Intrade) economic case against President Barack Obama: “The president did not cause the economic and fiscal crises that continue in America tonight, but he was elected on a promise to fix them, and he cannot claim that the last three years have made things anything but worse.”

In other words, the Obama Recovery stinks. Even if today’s GDP report — for the fourth quarter of 2011 — shows 3 percent growth or better, it would be just the fourth time that has happened since the economy began turning up in June 2009: 3.8 percent in the fourth quarter of 2009, 3.9 percent in the first quarter of 2010, and 3.8 percent in the second quarter of 2010. But no 3 percent-plus quarters since then.

The first nine quarters of the Reagan Recovery, by contrast, looked like this:  5.1 percent, 9.3 percent, 8.1 percent, 8.5 percent, 8.0 percent,  7.1 percent, 3.9 percent, 3.3 percent, 3.8, percent, 3.4 percent. In fact, the Reagan Boom went from the first quarter of 1983 until the second quarter of 1986 without notching a sub-3 percent GDP quarter.

So while the Reagan Recovery quickly made up for lost years of growth, not so much for the Obama Recovery, as this chart in today’s Wall Street Journal makes clear:

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And few economists are expecting the Obama Recovery to take off anytime soon. The IMF predicts just 1.8 percent growth for 2012 (and that’s assuming no EU sovereign debt meltdown). And the Federal Reserve sees growth in the 2.2 percent to 2.7 percent range with unemployment around 8.2 percent to 8.5 percent. Ugh!

The WSJ offers two explanations for the anemic rebound:

Economists say the nature of the recession helps explain the slow recovery. Aftershocks from the financial crisis have left banks reluctant to lend, making it hard for companies, and especially start-ups, to get access to capital. The housing market, which has historically helped lead the economy out of recession, remains deeply depressed.

Many business leaders say they are also being held back by policy-related uncertainty, everything from the threat of new regulations and higher taxes to the fear that political gridlock could hamper the government’s ability to respond to a new crisis. Recent economic research has given some weight to those complaints. A study by a trio of academic economists found that policy uncertainty has risen in recent years, and that periods of uncertainty have in the past corresponded with rising unemployment and slowing growth.

Whichever explanation holds more weight with voters may go a long way toward deciding who’ll be America’s next president.

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U.S. making nice with the Muslim Brotherhood?

The highest-level meeting between a U.S. diplomat and Muslim Brotherhood officials will take place today in Cairo, Egypt.

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U.S. deputy secretary of state, William Burns, will meet officials of the Muslim Brotherhood’s political wing in the highest-level meeting yet between the two sides. (Chip Somodevilla/AFP/Getty Images)

The U.S. has long shunned Egypt‘s Muslim Brotherhood, accusing it of links to terrorists. Looks like that is about to change.

The State Department‘s number two diplomat, William Burns, will meet with leaders of the Brotherhood’s Freedom and Justice Party (FJP), which just won roughly 40 percent of the seats in parliament, AFP reports. (Final results of Egypt’s recent legislative elections have not yet been released).

The meeting marks part of a shift towards rapprochment from a decades-old U.S. policy of hostility toward the Brotherhood, who many in the U.S still fear will pose a threat to Israel and boost support for more extreme Islamists.

Still, the rise of Islamists, moderate and extreme, is a new reality in post-Mubarak Egypt. See Middle East highlights in the Foreign Operations Appropriations Bills from Jul. 2012, when the House Foreign Affairs Committee approved an amendment to limit the Secretary of State from using funds to support the Muslim Brotherhood.

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