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Economy

EXCLUSIVE: The GOP’s New ‘Anti-Stimulus’ Senator Sought Stimulus Funds

Senator-Designate Tim Scott (R-SC)

Senator-Designate Tim Scott (R-SC)

On Wednesday, ThinkProgress exclusively reported that Senator-Designate Tim Scott (R-SC) used a controversial method of securing federal contracts and grants for his district known as “lettermarking,” despite his supposed opposition to earmarks. A ThinkProgress review of newly obtained documents reveals that Scott also used the process to request stimulus funds for a pet South Carolina project — despite his public opposition to the American Recovery and Reinvestment Act and federal stimulus in general.

During his first campaign, he said that the 2009 stimulus had “failed Americans.”
Shortly after becoming a Congressman in 2011, he endorsed “elimination of any unobligated ‘stimulus’ funding.” And in a September 2012 statement, Scott said, “It is clear that the current path is unsustainable – stimulus spending doesn’t work and will not work.”

But, while he publicly attacked the stimulus, he wrote a May 2012 letter to Secretary of Transportation Ray LaHood requesting almost $22 million in stimulus funding for renovation of railroad tracks in North and South Carolina:

It is my understanding that you will soon be making decisions on the Transportation Investment Generating Economic Recovery (TIGER IV) grant program. I am writing in support of a joint application submitted by Horry County, South Carolina, Carolina Southern Railroad (CSR) and Columbus County, North Carolina. The funding provided through this grant will be used to rehabilitate 89 miles of railroad tracks used by CSR that are in dire need of repair and/or replacement. Currently, these tracks are shut down because they do not meet the new Federal Railroad Authority bridge requirement.

Read the letter:

The TIGER IV grants were funded by the 2012 continuing resolution, but are effectively an extension a program created by the 2009 stimulus.

On his campaign website, Scott wrote, “The biggest challenge facing our nation today is the culture of spending that has taken over Washington, D.C. I have fought hard to change the conversation from ‘how much can we spend’ to ‘how much can we save’, and we have succeeded in beginning to change that mindset. However, there is still a lot of work left to be done.” “The time for pet projects and special favors,” he added, “is over.”

Election

VIEWPOINT: How Obama Made Small Change Go Big

“Hope and change,” the ’08 Obama promised. It sounds like a bitter joke to many now. What change have we seen, they ask. What hope should we have?

Bunches of it. Though it may seem that Obama’s promise of change was obliterated by a combination of his own timidity or forces beyond his control, that pessimism looks a lot like myopia on closer inspection. In the long run, each election, each political victory, lays the groundwork for real change to the structure of American politics. Presidents, in particular, can set policy in ways that will reshape the contours of what’s possible for decades to come. This is the untold story of Obama’s first term: Obama’s seemingly small-bore policy initiatives end up paving the road for more sweeping progressive change down the line. The story of his second term, if he wins one, will be sticking the landing.

One of the common defenses of Obama’s record is that he did as much as he could. Though what we got wasn’t ideal, the argument goes, Obama was up against unstoppable forces: a filibuster-equipped intransigent opposition, an overly centrist Democratic Congress, and a breadth of well-funded corporate interests and lobbies. These forces, it’s said, determine the structure of American politics. They decide what the President can and can’t do — and in this case, Obama did nearly as much as they allowed.

There’s a lot of truth in this argument. But it’s by no means the whole truth. The happy history of the Obama administration is a series of often minor-seeming initiatives that double as gambits to reshape these so-called structural forces of American politics in ways that open up new possibilities for sweeping progressive change. His most prominent legislative reforms — health care and financial regulation — are quite famously designed with this goal in mind. Obamacare, through provisions like the cost control experiments and the Independent Advisory Board (IPAB), lays the groundwork for future pushes to revamp our still-unworkable health care system. Dodd-Frank is an attempt, albeit an incomplete one, to combat the economic and political threat posed by a giant, predatory financial sector.

However, the frequent reduction of the whole Obama policy legacy to those two laws misses the forest for two very tall trees. His policy legacy is sweeping, spanning a slate of changes that have the potential to shift the structural balance of forces in very real ways.

Take Obama’s work on climate change, oft cited as a source of disappointment among liberals. His record is undoubtedly a checkered record: Obama’s embrace of “clean coal” is gross posturing and his legislative pursuit of cap-and-trade when seemed at least possible was tepid at best. But look closely at what he used Presidential authority to do, and the picture improves considerably. The most important move in the long run, according to Obama critic Bill McKibben, has been the automobile fuel efficiency standards. It’s not just the fact that the rule reduces carbon pollution by 2 billion metric tons between now and 2030, though that helps. It’s that the rule realigns Detroit’s incentives, transforming the auto industry from a force against climate progress to an advocate for more earth-friendly policies.

As recently as 2011, Detroit was a fierce opponent of fuel efficiency standards. By this year, American automakers had pulled a complete 180. The reason is quite simple: high-mpg cars were “in all sectors…the key market driver” of the industry’s suddenly swelling profits. Obama’s policy brought what historically been a powerful, implacable opponent of fuel efficiency standards on board with climate-friendly approaches to both politics and their own products. One structural barrier to a saner climate policy removed, or at least mitigated.

Two other major climate policies functioned similarly. The EPA decision to label CO2 a pollutant resulted in serious executive action limiting power plant pollution, while stimulus funding for green energy helped the nascent industry flourish. These regulations created a market where renewable power could double in size, which, down the line, could help create a industry-funded pro-climate lobby to counter King Coal and other polluters.

These actions, with the exception of the stimulus (more on that in a bit), were done through the executive branch. This means two things. One is that significant policy improvements and challenges to the structural status quo can happen without the President having to wade through the obstructionist, filibuster-infested muck that is today’s Congress. The second is that Obama’s change is reversible: a President Romney would have the power to gut EPA carbon regulations and obstruct future fuel improvement standards. Control over the executive, on these climate issues, remains a key battlefield for remaking the stuff of American politics.

This pattern, smart short-run policy paired with long-term political vision, repeats throughout the Obama record. Department of Justice challenges to discriminatory voter ID laws not only protects equal access to the ballot box in 2012, but ensures that the critical constituency for long-term progressive change — minority voters — can vote for whomever they choose in perpetuity, as is their right. Obama’s decision to intervene in Libya not only stopped an impending massacre, but also enshrined a powerful framework for advancing human rights into international law and practice.

There will be more opportunities to push this kind of structural change in a second term, some we can’t possibly anticipate today. The stimulus is the ultimate example how a surprise crisis created – as Michael Grunwald’s book details, the stimulus created the framework for sweeping progressive change well into the future. As Grunwald puts it:

It included America’s biggest foray into industrial policy since FDR, the biggest expansion of anti-poverty initiatives since LBJ, the biggest middle-class tax cut since Ronald Reagan, and the biggest infusion of research money ever. It sent $8 billion into a new high-speed passenger rail network, the biggest new transportation initiative since the interstate highways, and another $7 billion to expand the country’s existing high-speed Internet network to underserved communities, a modern twist on the New Deal’s rural electrification…[The stimulus'] main legacy, like the New Deal’s, will be change.

We have no idea what crises a second-term President Obama will face, but there’s certain to be at least one. And while it likely won’t be at the scale of as the Great Recession, it too will contain opportunities for long-term progress.

Predicting the future is always risky. We have no way of knowing which, if any, of the Obama administration’s efforts to change the structure of American politics will pay off down the line. Some will likely fail, but others will almost certainly succeed. The Obama presidency, then, hasn’t been and won’t be a lesser evil. It’s a critical building block in constructing a political reality in which progressive politics can flourish.

And if that’s not a reason for hope, then what is?

Economy

Ann Romney To Visit Cancer Center That Benefited From Stimulus Funds

Ann Romney, a breast cancer survivor, will visit the Moffitt Cancer Center in Tampa, Florida on Wednesday — which has received millions from the stimulus (American Recovery and Reinvestment Act). Her husband and his running mate Paul Ryan both opposed the measure, which President Obama signed into law in February of 2009.

Ann will tour the location and “meet with patients and members of their families.”

The Moffit H. Lee Cancer & Research Institute is Florida’s only Comprehensive Cancer Center that conducts “extensive research on cancer as well as providing advanced forms of treatment.” It benefits from “significant federal research funding,” including $23,920,428 from the stimulus:

Romney and Ryan have criticized the president’s stimulus and its results. Romney has said the president’s vision has failed and released a statement saying “the only thing President Obama’s stimulus has produced is a series of broken promises” on the three-year anniversary of the stimulus. These comments haven’t stopped the candidates from campaigning at sites that have benefited from the funding, however.

Romney appeared at Watson Truck & Supply in Hobbs, New Mexico, which benefitted from $400,744 in stimulus funds, fundraised at the home of a recipient of stimulus funds, and bashed the stimulus at a small Ohio college that took $80,000 in Recovery Act money

Climate Progress

After Criticizing The Stimulus, Romney Will Campaign At A New Mexico Company That Benefited From It

Tomorrow Republican presidential candidate Mitt Romney is scheduled to campaign in Hobbs, New Mexico, where he has said he will be “describing a comprehensive energy plan.”  The speech will be at Watson Truck & Supply, a trucking and oilfield services company in Hobbs that manufacturers drilling rig equipment, provides services for rigs, and hauls heavy equipment.

Interestingly, Watson Truck & Supply benefitted from $400,744 in stimulus funds, those from the American Recovery and Reinvestment Act promoted by President Barack Obama that was signed into law in February 2009.  As recovery.gov shows, the company was a stimulus vendor hired by the City of Hobbs.  It used the funds for the “purchase of building for transit center”:


This is of particular interest because both Romney and his vice presidential pick Rep. Paul Ryan (R-WI) have strongly criticized the president’s stimulus and its results.  Romney has said the president’s energy “vision has failed,” and on the three-year anniversary of the stimulus he released a statement saying “the only thing President Obama’s stimulus has produced is a series of broken promises.”

And it’s not the first time that Romney and Ryan have campaigned with beneficiaries of the stimulus or shown hypocrisy towards it.  In June, Romney fundraised at the home of a recipient of stimulus funds.  He also bashed the stimulus at a small Ohio college that took $80,000 in stimulus money.  And just last week, it was revealed that Ryan helped various constituent groups acquire stimulus funds for bus services, energy efficiency, and renewable energy projects while calling the package “a wasteful spending spree.”

This campaign stop also runs counter to Romney’s consistent attacks on the Obama statement “you didn’t build that.”  Conservatives quickly pounced on the comment as belittling small business owners, whereas the full text of the president’s speech reveals that he was referring to the idea that government has helped successful individuals along the way.  Benefits from the stimulus to Watson Truck & Supply is just one example of government support for small business owners.

Various studies have shown that the stimulus actually created millions of jobs and turned the economy around.

Jessica is the Manager of Research and Outreach for the Public Lands Project at the Center for American Progress Action Fund.

Election

Paul Ryan Claims He Didn’t Know He Signed Letters Asking For Stimulus Funds

During an interview with Fox News’ Carl Cameron on Saturday, Paul Ryan tried to explain why he denied requesting stimulus funds for a local energy company in 2009 after voting against and demagoguing the Recovery Act. “My office sends tens of thousands of letters to various federal agencies. This went through what we call my case work system, where it was treated as a case work request for a constituent,” Ryan said. “It wasn’t my intention to send letters supporting the stimulus”:

RYAN: I didn’t know about those letters until very recently when they were brought to my attention because they went through our constituent case work system and I take full responsibility for that. The point I’m trying to make is, the stimulus was a failure

Watch it:

But the letters — at least five in total — are all signed by Ryan in different ways, suggesting that he or an aide hand-signed the documents. “Recovery Act” is also prominently written in the very first line:


Climate Progress

Building Better Neighborhoods: A Success Story On Innovation, Jobs And Consumer Savings From Energy Efficiency

by Bracken Hendricks and Adam James

Question: What is the Department of Energy doing to address the fact that American homeowners and businesses spend about $300 billion on energy bills per year?

Answer: Helping the private sector to create new markets that provide thousands of workers with paychecks, and launch innovative new business models for capturing energy efficiency.

The Better Buildings Neighborhoods program, formerly known as the “Retrofit Ramp-Up,” was launched in April of 2010 with the aim of jumpstarting state and locally based energy efficiency programs using Recovery Act grants as one-time seed funding. To date, $508 million in grant funding has gone out to 41 different programs, serving hundreds of communities nationwide.

The 2009 “Recovery through Retrofit” report spearheaded by Vice President Biden and the White House Council on Environmental Quality identified several key barriers that have slowed the growth of a residential energy efficiency market. These barriers to scale include:

  • Access to Information: Average consumers rarely have easy and understandable data about their home’s energy usage, the return-on-investment for upgrades, or the various options available to them.
  • Access to Financing: A lot of energy efficient upgrades make good financial sense over the long run, but the up-front capital costs are intimidating. Financing can soften the blow and space payments out over a period of time which mirrors the way consumers see energy bills.
  • Access to Skilled Workers: Despite large numbers of construction workers being out of work, the pool of skilled labor is constrained. This can be traced to a lack of demand for these services. Who stakes their livelihood where a solid market doesn’t yet exist?

With these barriers in mind, the Better Buildings Neighborhoods programs set out to create the conditions for a scalable energy efficiency market. Their approach: strategic and creative use of ARRA grant funds as seed money (requiring recipients to leverage private capital 3:1) to get programs off the ground, build constituencies and stakeholders for these programs, and extract lessons learned to inform future program design.

Halfway through the funding and about two thirds of the way through its lifetime, the program has already demonstrated important success.

Read more

Economy

Republican Congressman Touts Companies That Benefited From Stimulus

Rep. Charlie Dent (R-PA)

Every single Republican in the House and the overwhelming majority of Republican in the Senate — with the exception of Sens. Olympia Snowe (R-ME), Susan Collins (R-ME), and then-Republican Sen. Arlen Specter — voted against the Recovery Act. The law passed in 2009, at a time when the economy was hemorrhaging 700,000 jobs per month and has since saved or created 2.5 million jobs.

Publicly, the GOP claims that the policy has “failed” and “made things worse,” but privately even Republicans have tried to take credit for some of its success. A 2010 report from ThinkProgress found that over half of the GOP caucus, 110 lawmakers — from the House and Senate — returned to their home states to claim credit for popular stimulus programs, attended “ribbon cuttings for the same projects that you voted against,” and even sought more stimulus funds for their states.

One such lawmaker is Rep. Charlie Dent (R-PA). In February of 2009, Dent explained his opposition to the stimulus by claiming that the law “raises America’s debt by a record amount” and by October of that year pronounced that “stimulus funding has failed its original purpose — to stimulate the economy and create jobs.” However, that didn’t stop Dent from urging the Obama administration to use education stimulus dollars for four Pennsylvania state-related universities or relying on employers who benefited from the stimulus to employ his constituents.

On Saturday, July 14, Dent is hosting a Job Fair “open to anyone seeking a change in employment.” “This event aims to bring job seekers together with representatives from a wide range of employers from a variety of fields, seeking talented and capable workers for a diverse range of positions,” his website claims and lists 33 “employers and organizations that will be in attendance.” Six of those companies benefited from the stimulus, a ThinkProgress search of Recovery.gov revealed, receiving a combined total of $6,252,576 from the Recovery Act:

– Lehigh Carbon Community College: $2,532,039 total funds awarded.

– Lehigh Career and Technical Institute: $75,256 total funds awarded.

– Sacred Heart Hospital: $2,011 total funds awarded.

– Simplex Grinnell: $175,567 total funds awarded.

– Devereux: $1,281,113 total funds awarded.

– Easton Coach Company: $2,186,570 total funds awarded.

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.

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