Research Briefing

BIDEN ON STIMULUS YESTERDAY: “In My Wildest Dreams, I Never Thought It Would Work This Well …”(Elizabeth Williamson, “Biden On Stimulus: ‘Never Thought It Would Work This Well,’” The Wall Street Journal’s “Washington Wire” Blog, 9/24/09)

BUT BIDEN’S EARLY CLAIMS OF STIMULUS’ SUCCESS DON’T MATCH TODAY’S REALITY

DREAM #1: In February, Biden Claimed Stimulus Will “Create Tens Of Thousands” Of New Jobs” “[T]he signing of the American Recovery and Reinvestment Act represents an incredibly strong first step in, at least in my view, along this long and difficult road to recovery … we’re making an unprecedented investment in this country, in the recovery of this country … that will be able to create tens of thousands, over time, of good, high-paying jobs ...” (Vice President Joe Biden, Remarks Of The Vice President At The First Meeting Of The Middle Class Task Force, Philadelphia, PA, 2/2/709)

• But Since Stimulus Passed In February, America Has Lost Over 2.4 Million Jobs. (U.S. Labor of Bureau Statistics, www.bls.gov, Accessed 9/25/09)

DREAM #2: In March, Biden Claimed Stimulus Will Create Jobs “That Can’t Be Outsourced.” “This energy efficiency funding for states is an important investment in making America more energy independent, creating a cleaner economy and creating more jobs for the 21st century that can’t be outsourced.” (The White House, “Administration Announces Nearly $8 Billion in Weatherization Funding and Energy Efficiency Grants,” Press Release, 3/12/09)

• But Recently Distributed Stimulus Funds Going To Foreign Corporations Creating Jobs Overseas. “Nearly half of the $2.4 billion in federal grant money awarded Wednesday to stimulate the U.S. economy and boost the production of hybrid and electric vehicles went to six companies with ties to places as far away as Russia, China, South Korea and France. ... But because so few American companies have the necessary technology, much of the money will initially go toward manufacturing electric vehicle batteries overseas.” (Jerry Seper, “Obama Sends Stimulus Aid To Foreign Firms,” The Washington Times, 8/6/09)

DREAM #3: As Vice-President Elect, Biden Said Stimulus Funds Would Be “Closely Watched” To Ensure Effective Use Of Money. “‘I know it’s the Christmas season, but President-elect Obama and I are absolutely, absolutely determined that this economic recovery package will not become a Christmas tree,’ Biden said. ‘Every dollar will be closely watched to make sure it’s being used in an effective manner.’” (Jeanne Sahadi, Obama Closing In On Stimulus Funds,” CNNMoney.com, 2/18/09)

• But Biden Admits Stimulus Funds Will be Wasted. “‘We know some of this money is going to be wasted,’ Biden said during a roundtable discussion in New York with business leaders aimed at promoting the two-year stimulus plan.” (Pedro Nicolaci da Costa, “Biden Says Some Waste Inevitable Part of Stimulus,” Reuters, 6/2/09)

• And Georgia Department Of Transportation Requiring Stimulus Funds To Be Spent On Advertising Stimulus. “Bright orange and standing more than 10 feet tall, the signs are hard to miss as you approach Roswell Road from either direction on Marietta Parkway in east Cobb County. They declare the $7.5 million in improvements planned for that area are coming from federal stimulus funds. So are the signs for that matter. The cost to taxpayers: $1,500 each plus $100 for installation. As more such federally funded road projects get under way, hundreds more of these signs are expected to pop up across the state. All thanks to a Georgia Department of Transportation requirement of two signs per stimulus project. At an average cost of about $1,200 per sign and with about 250 projects planned or under way, the cost to taxpayers could top $600,000, though state contractors could cut that amount by reusing some signs.” (Jeremy Redmon, “GDOT To Pay For Road Signs From Federal Stimulus Funds At $1,500 Per Sign,” The Atlanta Journal-Constitution, 9/25/09)