Research

Obamanomics Outsourced

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AMERICAN TAXPAYER DOLLARS CREATED STIMULUS AND JOBS…ABROAD

Nearly Half Of Obama’s $2.4 Billion Devoted To Advanced Vehicle Batteries Went To Foreign Companies. “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 Times8/6/09)

  • A Massive Stimulus Grant Program For Wind Turbines Was Exempted From The “Buy America” Provision In The Stimulus. “Matt Rogers, the senior adviser to the Secretary of Energy for the Recovery Act, denied there was a problem. …Several of the large European turbine manufacturers had limited manufacturing facilities in the United States, but there was nothing in the stimulus plan that required that the turbines, or any other equipment needed for the wind farms, be made here, said Rogers. There are strict ‘Buy America’ provisions in the Recovery Act, but this Green Energy Stimulus initiative turned the existing tax credits into cash grants, bypassing the ‘Buy America’ provision.” (Jonathan Karl, “New Wind Farms In The U.S. Do Not Bring Jobs,” ABC News, 2/9/10)

Obama’s Clean Energy Investments Are “A Case Study Of What Can Go Wrong When A Rigid Government Bureaucracy Tries To Play Venture Capitalist.” “The Obama administration’s vaunted initiative to catalyze the U.S. clean-energy industry — under attack for betting half a billion dollars on the solar-panel manufacturer Solyndra, which closed last month — has become a case study of what can go wrong when a rigid government bureaucracy tries to play venture capitalist and jump-start a nascent, fast-changing market.” (Steven Mufson And Carol D. Leonning, “Some Clean-Energy Firms Found US Loan-Guarantee Program A Bad Bet,” The Washington Post9/26/11)

  • The Department Of Energy “Acknowledged” That Up To 80 Percent Of Some Green Programs Went To Foreign Firms. ”The Department of Energy estimated that 82,000 jobs have been created and has acknowledged that as much as 80 percent of some green programs, including $2.3 billion of manufacturing tax credits, went to foreign firms that employed workers primarily in countries including China, South Korea and Spain, rather than in the United States.” (Patrice Hill, “‘Green’ Jobs No Longer Golden In Stimulus,” The Washington Times, 9/9/10)

NOTABLE EXAMPLES

Two South Korean Companies Were Given $303 Million To Produce Car Batteries With Foreign Workers

Compact Power, Inc. (On Behalf Of LG Chem, Ltd.) Received A $151.4 Million Award Through The Department Of Energy’s Energy Efficient And Renewable Energy Recovery Act For The “Production Of Lithium-Ion Polymer Battery Cells For The GM Volt.” (Department Of Energy, “Recovery Act Awards For Electric Drive Vehicle Battery And Component Manufacturing Initiative,” Press Release, 8/5/09)

The Recovery Act Award Notes That The Total Cost Of The Project Will Be $303 Million. “The U.S. Department of Energy proposes is providing partial funding to Compact Power, Inc. to construct and operate a high-volume manufacturing plant to build advanced lithium-ion cells and batteries for hybrid vehicles, aviation, smart grid support, broadband backup power, and energy storage for renewable energy. The U.S. Department of Energy would provide $151 million in financial assistance in a cost-sharing arrangement with the project proponent, Compact Power Inc. The total cost of the proposed project is estimated at $303 million. The facility would be built on about 80 acres in the town of Holland, Michigan. Compact Power, Inc. would employ approximately 450 workers when the facility is fully operational.” (“Compact Power, Inc. Award Number DE-EE0002632,” Recovery.gov, Accessed 7/9/10)

LG Chem “Bought A Lot Of Korean Equipment And Supplies. And They Filled Some Of Those Sought-After Jobs With Korean Workers.” “In 2010, Obama and Vice President Biden personally appeared to break ground at two Michigan plants. The plants were getting a combined $300 million under the stimulus program to build electric car batteries. But as it turns out the companies getting all those American tax dollars are largely owned by Koreans. They bought a lot of Korean equipment and supplies. And they filled some of those sought-after jobs with Korean workers. That drew anger from local labor unions. They say pictures, taken inside the plants show Korean nationals doing hands-on work that should be done by Americans.” (Sharyl Attkisson, “Unions Say Foreign Workers Taking Stimulus Jobs,” CBS News, 4/13/12)

LG Chem And Dow Kokam Will Not Release A Grand Total Of The Number Of Foreign Workers At The Stimulus-Funded Battery Plant. ”‘The companies, LG Chem and Dow Kokam, wouldn’t agree to interviews. but they told CBS News the Korean workers are temporary and legal and have “unique … expertise (with) highly sophisticated equipment.’ But just how many there are remains a mystery. The companies won’t tell us. Dow Kokam acknowledged 150 on site last December, but won’t give a grand total.” (Sharyl Attkisson, “Unions Say Foreign Workers Taking Stimulus Jobs,” CBS News , 4/13/12)

  • FLASHBACK: Obama Touted Green Jobs In Michigan And Then Gave Stimulus Money To A Korean Company. ”But the green economy looks like a lot of green for the well-connected. The president handed $150 million in stimulus money over to Korean CEO Peter Bahnsuk Kim of LG Chem. LG Chem is an $11 billion Korean conglomerate that hardly seems a candidate for the American Recovery Act. No wonder the program is so unpopular.” (Henry Payne, Op-Ed, “He Came, He Saw, He Insulted,” Detroit News7/16/10) 

Fisker Was Given A Half-Billion Dollar Loan, Builds Hybrids In Finland

In 2009, The Department Of Energy Granted Fisker A $529 Million Stimulus Loan Guarantee, $359 Million Of Which Was To Go Toward Reviving The Former GM Boxwood Plant In Wilmington, Delaware. “In September, Secretary Chu announced a $528.7 million conditional loan for Fisker Automotive for the development of two lines of plug-in hybrids, which will save hundreds of millions gallons of gasoline and offset millions of tons of carbon pollution by 2016. Of the total loan, $359 million is going to revive manufacturing at the Boxwood Plant.  The Boxwood Plant will support Fisker Automotive’s Project NINA, the development and build of a mass-market plug-in hybrid sedan.” (Press Release, “Vice President Biden Announces Reopening Of Former GM Boxwood Plant,” Office Of The Vice President, 10/27/09)

  • FLASHBACK: Biden Attended The Re-Opening Of Fisker’s Delaware Plant, Calling The Loan “Seed Money That Will Return Back To The American Consumer In Billions And Billions And Billions Of Dollars In Good, New Jobs.” BIDEN: “This is seed money that will return back to the American consumer in billions and billions and billions of dollars in good, new jobs.” (ABC News’ “Nightline,” 10/25/11)

“With The Approval Of The Obama Administration,” Fisker Began Assembling Its First Line Of Cars In Finland. “With the approval of the Obama administration, an electric car company that received a $529 million federal government loan guarantee is assembling its first line of cars in Finland, saying it could not find a facility in the United States capable of doing the work.” (Matthew Mosk and Brian Ross, “Car Company Gets U.S. Loan, Builds Cars In Finland,” ABC News, 10/20/11)

  • “Fisker Used The First $169 Million In Taxpayer Funds To Bring To Market The Karma, A Flashy $100,000 Hybrid Sports Sedan That It Assembles In Finland.” (Matthew Mosk, “Fisker May Never Build Electric Cars In US,” ABC News, 5/30/12)

Parago Received $11 Million To Hire Workers In El Salvador And The Dominican Republic

In December 2009, Ohio Got An $11 Million Stimulus Grant To Provide Rebates To People Who Buy Energy Efficient Appliances For Their Homes. “Ohio will use $11 million federal stimulus money to provide rebates to people who buy energy efficient appliances for their homes. The U.S. Department of Energy approved the state plan Thursday.” (“Ohio Stimulus Plan Gives Rebates On New Appliances,” The Associated Press, 12/4/09)

Ohio Contracted With A Firm Based In Texas To Run The Program. Ohio’s Department of Development contracted with Texas-based Parago to run the appliance rebate program for roughly $500,000.” (Patrick Preston, “Ohio Rebate Program Created Jobs In Texas, Central America,” NBC4I, 7/27/10)

Upon Receiving The Grant, Parago Hired Hundreds Of Workers In El Salvador. “A Texas company hired to administer Ohio’s popular appliance rebate program used hundreds of workers in El Salvador to process applications and to answer customers’ calls.” (“Strickland Upset With Stimulus Work Outside U.S.,” The Associated Press, 8/01/12)

Parago Also Outsourced Stimulus-Funded Jobs To Workers In The Dominican Republic. “The Texas company that outsourced stimulus-funded call center jobs to Central America also hired workers in the Dominican Republic. Ohio Department of Development spokesperson Katie Sabatino confirmed that Lewisville, Texas-based Parago used call centers in El Salvador and the Dominican Republic on Friday, the same day that ODOD released documents detailing how Parago won the state contract to run Ohio’s Energy Efficient Appliance Rebate Program.” (Patrick Preston, “Columbus CEO Speaks Out Against Texas Company in Charge Of Ohio Appliance Rebate Program,” NBC4I, 7/30/10)

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