ThinkProgress Home
ThinkProgress
ThinkProgress Logo

Stories tagged with “American Recovery and Reinvestment Act

Economy

‘Ohio Manufacturers For Romney’ Received Nearly $1.6 Million In Stimulus Funds

In an effort to head off former Sen. Rick Santorum’s push on manufacturing in the key Super Tuesday state of Ohio, Mitt Romney this morning announced an “Ohio Manufacturers for Romney” coalition. A search of Recovery.gov shows that the corporations of two members of the group received nearly $1.6 million in Recovery Act funds.

Lincoln Electric of Cleveland received a sub-award of $1,125,00 on April 7, 2010 from the Ohio Department of Communications Development for an energy-related project in Euclid, Ohio. RPM International of Medina received two sub-awards in 2010, totaling $458,758 for two U.S. Army projects.

Romney, meanwhile, recently used the occasion of the Recovery Act’s third anniversary to continue attacking the law:

 

The Congressional Budget Office reported last week that up to 2 million people were employed in December because of the stimulus.  Manufacturing jobs have also grown for the past two years in a row after previously seeing no annual growth at all since 1997.

Economy

VIDEO: Three Years Since The Stimulus, A Look At Its Success

The American Recovery and Reinvestment Act, better known as the stimulus, became law three years ago this week, signed by President Obama less than a month into his presidency. At the time, financial and housing crises had plunged the American economy into a deep recession — in January 2009, the economy lost more than 800,000 jobs, more than in any single month in 60 years.

With its investments into infrastructure projects, tax cuts, and aid to states, the stimulus was designed to curb the effects of the recession and turn the economy back around. Though Republicans have criticized the effort and subsequent attempts to stimulate the economy as “failed policies,” early analysis has shown that the stimulus saved and created millions of jobs and pulled the American economy away from the precipice of collapse.

In a new analysis, Center for American Progress Director for Tax and Budget Policy Michael Linden examined the American economy in three parts — before the recession, during the recession, and after the stimulus passed — to find out if the stimulus did, indeed, work. As the video below shows, there is no doubt that the stimulus turned the economy around and put it on the path to recovery:

Economy

Report: The Recovery Act Saved Thousands Of Americans From Homelessness

The Great Recession has steadily eaten away at the economic security of many Americans. Facing stagnant wages, growing unemployment, and rising health care costs, nearly 50 percent of Americans are slipping from the shrinking middle-class into low-income status or even poverty. In 2009, President Obama signed the American Recovery and Reinvestment Act (ARRA) in order to bolster job creation and fend off an even more severe downturn. The ARRA passed without a single House Republican vote, with House Budget Committee Chairman Paul Ryan (R-WI) calling it a “woefully inadequate” response.

However, a new report from the National Alliance to End Homelessness reveals that the Recovery Act was vital in keeping Americans off the street. An estimated $1.5 billion of Recovery Act funds were directed towards “rental assistance and programs steering recently evicted people toward new housing.” According to Alliance President Nan Roman, those funds were instrumental in keeping the number of homeless down “even as the U.S. economy saw its worst downturn since the 1930s”:

The Homelessness Research Institute, the educational arm of Roman’s organization, put the number of Americans living on the streets or in shelters at just over 636,000 in 2011. That’s down about 6,000 from the group’s 2009 estimate. The figure is based on reports and street counts from state and local agencies that receive federal housing funds.

Roman said the stimulus money, coupled with pre-recession federal programs aimed at veterans and the chronically ill, have kept that figure down even as the U.S. economy saw its worst downturn since the 1930s. But that money is drying up now that the Obama administration, Congress and the states are grappling with budget issues fueled by the recession.

In fact, the Homelessness Prevention Rapid Re-housing Program (HPRP) program alone, which was directly funded by the Recovery Act, helped 94 percent of the program’s participants who were homeless or a step away from homelessness find permanent housing. The Recovery Act also kept 6 million Americans out of poverty and created at least 3.3 million jobs.

But ARRA funds are running out and, as the report notes, the number of Americans facing the prospect of homelessness is continuing to rise. More than 4 million homes were foreclosed upon since 2007 and the New York Federal Reserve estimates that 3.6 million more will be lost to foreclosure in the next two years. If Republicans continue to slash these housing programs, thousands of vulnerable Americans will face the exact situation the Recovery Act helped successfully prevent.

Climate Progress

Inspector General Finds 0.07 Percent Rate Of Fraud In Energy Stimulus Spending

Gregory H. Friedman

The Department of Energy has had a remarkably low rate of fraud in its rapid distribution of billions of dollars in Recovery Act funds, the department’s Inspector General has found. After more than 100 investigations, Gregory H. Friedman has recovered 0.07 percent of the $35.2 billion in stimulus funds deployed by the Department of Energy, the Washington Post’s Ed O’Keefe reports:

Gregory H. Friedman is slated to tell lawmakers that the Energy Department‘s efforts to quickly distribute $35.2 billion in economic stimulus funding “was more challenging than many had originally envisioned.” [...] Friedman’s appearance Wednesday is meant to summarize the more than 100 investigations conducted by his office into the department’s stimulus spending. To date, the office has recovered $2.3 million in stimulus fraud and has sparked five criminal prosecutions.

Friedman identified that a large amount of stimulus spending is still in the pipeline at the local level: “45 percent of stimulus dollars distributed by Energy still hadn’t been spent by state and local government as of Oct. 22.” The nearly $16 billion yet to be spent should provide a significant boost to the local economies as it reaches businesses, manufacturers, and workers.

Bizarrely, the O’Keefe portrayed the 99.93 percent success rate of clean energy spending this way: “Energy Department couldn’t manage stimulus money.”

Yglesias

The Era Of Shrinking Government

You don’t hear much about this in the mainstream media, but here’s what’s happened in the American economy over the past 10 years:

I think that if a Democrat had been in office from 2001-2008 and then a Republican had been inaugurated in 2009, the narrative would be quite clear. But the fact is that nothing in ARRA was nearly generous enough to state and local governments to prevent what amounts to austerity budgeting when you look at the US government as a whole. And now the federal government is joining the austerity party that states and localities have been throwing all along.

NEWS FLASH

DOE Approves $1.1 Billion In Solar Loans As Deadline Nears | The Department of Energy has approved two loan guarantees worth more than $1 billion for solar energy projects in Nevada and Arizona, two days before the expiration date of the Recovery Act clean energy program. Energy Secretary Steven Chu said the department has completed a $737 million loan guarantee to Tonopah Solar Energy for a 110 MW molten-salt solar tower on federal land near Tonopah, Nevada, and a $337 million guarantee for Mesquite Solar 1 to develop a 150 MW alternating-current solar plant 45 miles west of Phoenix. The two projects will avoid nearly 500,000 tons of carbon dioxide pollution a year.

Economy

Sen. Shelby Falsely Claims Stimulus Package’s $288 Billion In Tax Cuts Were ‘More Taxes’

Not surprisingly, Republican lawmakers have uniformly come out against President Obama’s plan to pay down the deficit in part by raising taxes on the wealthy. But Sen. Richard Shelby (R-AL) had an usual attack on the proposal, telling NPR that, like the 2009 Economic Recovery Act, Obama’s new plan is just “more taxes and not enough cuts”:

SHELBY: Oh you mean his big tax increase and all that? Absolutely, I have a lot of reaction to it. We’ve seen this movie before. It’s like the son of stimulus. It’s always more taxes and not enough cuts.

Listen here:

As the Senate Banking Committee’s ranking member, Shelby almost certainly knows that the Recovery Act did not raise taxes. In fact, it cut them by $288 billion, mostly through tax credits for 95 percent of working families. There were zero tax increases in the stimulus package, nor were there any cuts, as the entire purpose of the bill was to jumpstart the economy.

Climate Progress

Media Snipes At Obama’s Continued Clean Jobs Push

Today, President Barack Obama is meeting with his Council on Jobs and Competitiveness at the North Carolina headquarters of Cree Inc., a leading manufacturer of LED technology. Obama has spent his first term pushing investment into clean energy industries, fighting unyielding Republican opposition. The resurgence of American auto industry is the greatest success of his strategy. Emergency government support, higher fuel economy standards, and long-term investment in advanced technology have turned a morbund industry of gas guzzlers into a global leader of high performing, efficient vehicles. Green job growth far outstrips other sectors of the economy, thanks in part to the strategic goals of the Recovery Act:

But political reporters are following the contrarian arguments of pollution advocates, questioning the logic of redirecting our struggling economy towards sustainable growth. NPR White House correspondent Ari Shapiro worries that Obama’s “gamble” on green jobs is “risky.” And Politico’s top energy reporter, Darren Samuelsohn, acts the cynic:

Nearly three years into Obama’s presidency, the White House can’t point to much solid evidence that significant numbers of Americans are scoring the green jobs the president has been touting.

Remarkably, Samuelsohn ignores the collapse of the Clean Energy Jobs and American Power Act, which would have generated the multi-billion-dollar annual investment in clean energy the nation desperately needs. Polluters and their conservative allies spent about a billion dollars killing this crucial climate and clean energy legislation, demonizing anything to end our nation’s deadly dependence on coal and oil.

Conservatives haven’t merely been skeptics of the green economy — they have been and continue to be active opponents of anything that would break the stranglehold of fossil fuel companies over our nation’s future.

Politics

After Demanding Repeal Of Stimulus, GOP Rep. Long Attends Ceremony For Stimulus-Funded Clinic

During his campaign for Congress last year, freshman Rep. Billy Long (R-MO) called for a complete repeal of President Obama’s stimulus program. “I hope that Congress will admit they made a mistake and vote to repeal the Stimulus Act in order to reduce our deficit,” he said confidently at the time. Once he got into office, Long’s opinion did not change. On the second annivsary of the bill’s signing, Long sent out a press release claiming that the stimulus had “failed.”

However, Long was singing a different tune last week when he stood with officials at a ceremony for a new health clinic in his district. On Friday, Long appeared with other community leaders to break ground for the new Access Family Care clinic in Cassville, Missouri. The construction was made possible with a $635,000 grant from the stimulus, secured in part by Sen. Claire McCaskill (D-MO), who unlike Long supported the stimulus. View a picture from Access Family Care’s website showing Long at a groundbreaking to spend stimulus money in his district:

According to the Cassville Democrat, the facility will eventually “house three medical providers, two dentists and two dental hygienists.” “This will be a great facility,” Long declared at the event. It is not clear if Long revealed to the audience that he had called for repealing the funds that made the clinic possible.

Long’s blatant hypocrisy places him in league with his congressional predecesor, now-Sen. Roy Blunt (R-MO). As ThinkProgress has reported, when Blunt held Long’s seat in Congress, he also took credit for the successful stimulus by attending groundbreaking ceremonies for stimulus-funded projects.

Yglesias

Rep John Mica’s Quest For Art Museum Funding Underscores The Case For Bills He Opposes

Representative John Mica of Florida has assembled a very orthodox conservative voting record sine the inauguration of Barack Obama. He voted against the American Recovery and Reinvestment Act, he opposed the Obama administration’s plan to increase infrastructure spending, and he voted yes on Paul Ryan’s proposal for lower tax, Medicare privatization, and draconian spending cuts.

But in other respects, Representative Mica seems to understand the misguided nature of the conservative agenda. Consider one small thing, his desire to secure funding to relocate the Federal Trade Commission in order to allow for expansion of the National Gallery of Art:

Just as Republicans in Congress have been calling for an aggressive crackdown on federal spending, one powerful House leader has declared that his desire to expand the National Gallery of Art — at an estimated cost of $270 million — has become his singular, top priority on Capitol Hill.

Rep. John Mica, the Florida Republican who chairs the House Committee on Transportation and Infrastructure, has spent years pushing legislation to evict the Federal Trade Commission from its stately historic building on Pennsylvania Avenue in the heart of Washington, D.C., to make space for the art gallery expansion. Even after taking the helm of a committee that helps set the nation’s policy on everything from air safety to mass transit to highway construction, Mica has maintained his laser focus on winning approval for this pet project.

“I have no other priority for the balance of my tenure in Congress,” Mica said at a House subcommittee meeting in March.

It’s worth noting that, hypocrisy issues aside, Mica’s proposal on the merits makes a ton of sense. As it happens, last week I had to schedule a meeting with a few visiting Members of the European Parliament just before they went to a meeting at the FTC, which induced me to look up the FTC’s location for the first time ever. Simply put, the corner of 6th Street and Pennsylvania Avenue would be a great location for a museum (near the Mall and other tourist attractions where it’ll be useful to visitors) while the FTC derives little practical benefit from the location. It’s near a Metro station, which is excellent, but it would be easy enough to move the FTC to someplace else Metro accessible—near the New York Avenue or Navy Yard stations, or perhaps the former Immigration and Customs Enforcement headquarters building at 425 Eye Street.

What’s true is that this will cost money. That’s a downside. But the country’s in the middle of a steep recession. Even in the relatively healthy DC metro area, we have sky-high unemployment among low-skill workers due to the decline of the construction industry. So from a real resources point of view, there’s almost no cost to spending money on this kind of relocation at this point. And over the long-term, doing the project will benefit the country. If only Rep Mica could see that this exact same logic applies to useful projects all across the country and not just one idiosyncratic interest that we happen to share.

Older

Switch to Mobile