backtop


Print 81 comment(s) - last by Qapa.. on Jan 28 at 8:34 AM

Obama wanted to increase federal subsidies for electric vehicles to almost $590 million, but Congress never gave the green light

U.S. President Barack Obama planned to increase federal subsidies for electric vehicles to almost $590 million, but Congress has not yet approved this hefty agenda.

The $590 million EV boost was presented in Obama's 2011 State of the Union address, where $200 million of that total would be put toward EV infrastructure development in up to 30 cities. The idea reflected bipartisan bills brought to light in 2010.

"With more research and incentives, we can break our dependence on oil with biofuels, and become the first country to have a million electric vehicles on the road by 2015," said Obama in the 2011 State of the Union address. "We've begun to reinvent our energy policy. We're not just handing out money. We're issuing a challenge."

Congress still hasn't approved the policy changes for EVs, according to White House Press Secretary Jay Carney.

"There are absolutely things that remain undone that need to be done that he will call on all of us to work together to get done in this address and beyond," said Carney.

Obama is expected to talk today about an "economy fueled by homegrown and alternative energy sources that will be designed and produced by American workers."

Funding and loans for alternative energy have been scrutinized lately. In October 2011, Mitt Romney, a candidate for the 2012 Republican Party presidential nomination, blasted the $1 billion in loans given to Tesla and Fisker Automotive. That wasn't the first time he criticized aid to the auto industry, though. In 2008, he disagreed with former U.S. President George W. Bush's decision to give bailouts to U.S. automakers.

In September 2011, Rep. Mike Kelly (R-PA), a Hyundai and Chevrolet dealer, suggested killing off the $7,500 tax credit for EVs entirely.


"The bottom line is, while our nation borrows 42 cents on every dollar, taxpayers are paying for an electric vehicle tax credit that has cost tens of millions of dollars, and that largely benefits upper-income Americans," said Kelly.

Obama, however, planned to convert the $7,500 federal tax credit for EVs into a rebate that would be given to customers upon purchasing an electric vehicle. He made this announcement in January 2011.

To make matters worse, EVs have been placed under the spotlight due to recent battery troubles associated with General Motors' Chevrolet Volt. The National Highway Traffic Safety Administration conducted a series of tests in May and November last year where three separate Volt batteries sparked or caught fire after side-impact tests.

Electric vehicles are not the only targets for alternative energy-related criticism. Back in September 2011, Silicon Valley-based solar panel company Solyndra went bankrupt after receiving a $535 million loan from the Obama administration in 2009. The move was set to stimulate economic growth through environmentally friendly jobs, but government employees warned back in 2009 that Solyndra would indeed go bankrupt in a matter of two years. The loan pushed through anyway in order to meet political deadlines.

Source: The Detroit News



Comments     Threshold


This article is over a month old, voting and posting comments is disabled

By PresidentThomasJefferson on 1/24/2012 2:32:47 PM , Rating: 0
Deficit spending(aka creating money) to fund trillions on energy research, scientific/medical research/development = GREAT

Gov funding of inventions from history:

FDR did this & that is
how we got antibiotics
(gov doctor Ian Fleming discovered penicillin at UK gov hospital in 1928 but it languished on the shelf for 12 years because the conservative UK gov was in austerity mode so it took US deficit spending/money creation during WW2 to test & develop mass production of it),
nuclear power took decades of gov funding & subsidies (now it gives about 20% of US power & 80% of France's power) ,
radar was invented by gov
,
REA building & giving electricity to 90% of the population that didn't live in cities(which was 55% at the time)
, etc)..
as well as internet, genetic engineering/biotechnology, MRI machines.. hospitals, canals, interstates, powerdams, airports, science/engineering universities,
Eisenhower doubling medical schools, etc

Japan built hundreds more hospitals so there's no wait times for their universal healthcare system
&
along with Taiwan creates billions to train more docs/nurses (free educations for those majors in most Asian countries)

Japan & China deficit spends $2 trillion to build 200+ mile bullet trains to everywhere, China's gov banks create $2-$4 trillion more to build cities & ports & airports everywhere,

Singapore deficit spends hiring millions to build 2 to 5 bedroom executive home apartments which they sell back to their population 1 per person at just $20k to $80k so that 80% own their own homes.

Even the housing suburban construction boom of the 1940s,1950s,1960s was fueled by gov deficit spending(money creation)
as 1 in 3 US households were military that got a no-money down, gov guaranteed subsidized fixed-rate low-interest loan of 15-30 yrs (as well as business loans)
that fueled the growth suburban construction
& construction/contracting companies..
before that, only the wealthiest could afford to live in suburbia & most mortgages required huge downpayments & just 5 to 10 yr loans.

I bet that your grandparents, JohnGalt's grandparents,
&
others' whose parents served in the military WW2 benefited from the hundreds of bilions fo gov deficit spending/money creation that was the WW2 GI Bill

--which also gave free education to all military (about 50% took advantage of it to become engineers, doctors, scientists, etc that advanced the nation, including some of the founders of Intel, Hewlett Packard, Sun, Texas Instruments, etc)..

Gov money creation(deficit spending) also created the Veteran's Admin, that for the first time gave medical care to veterans for life, directly improving their standard of living (no, medical insurance was NOT common before that.. medical insurance was rare until the advent of employee benefits packages offered by companies to compete for workers during the economic boom of the 1950s/60s.
VA service suffered as it was repeatedly cut & understaffed in later admins.

The rightwing likes to say, "bah, it was cause we were exporting & selling with no competition after WW2"..
but who &
how were we selling & exporting when
all of Europe was 'bankrupt' & worse than broke because they had already
spent all their money(and deficit spent/borrroed even more) to fund their war effort also?

Answer:
Because the US created trillions in money(both gov deficit spending & private bank money creation/loans)
& granted &
loaned hundreds of billions to broke Europe/Japan to buy US goods & services.
Countries like Austalia, Canada, Sweden, etc that did the same (creating money aka deficit spending)
&
loaning and/or giving grants to Europe/Japan to rebuild to buy to goods/services also grew..
countries that didn't such as most of Central/South America grew weakly
&
didn't boom as much.

Now onto the negative:

Deficit spending to fund Iraq War & spending billions to rebuild Iraq = BAD for US domestic economy but great for Iraqi economy because the billions of dollars is exported & spent in Iraq --there is a huge economic boom in Iraq from US deficit spending aka money creation.

It was great for Halliburton & employees/shareholders of Halliburtion though but since Halliburton is headquartered in the MiddleEast & those jobs are in the MiddleEAst, it doesn't benefit the US domestic economy directly because Halliburtion was contracting out bids to China, Phillipines, etc..

this is the opposite of the US Marshall Plan, in which the US gov created hundreds of billions of dollars to loan to Europe/Japan to buy US-made goods that were then exported to Europe/Japan.

It's like why Reagan's stimulus plan of $1.9 TRILLION in deficit spending & $440+ billion in US defense military contracts worked because those defense jobs had to be made/hired in the US due to national security issues (can't outsource your bids to Mexico or China to build M1 Tanks or cruise missles or F-15s)
while ineffective
Obama's smaller 'stimulus' plan (which MMT economists said was 'too little, too late' called for $1.5 to $2 trillion instead)
didn't have a domestic must buy USA clause..

... so you had companies contracted on the 'green energy' outsourcing their solar cells to Chinese manufacturers
(which LA Times article showed that created 800+ new jobs at the Chinese solar cell plant),
you had Oregon lumbar companies
using stimulus money to hire hundreds of foreign H2 visa workers they imported from Mexico for $8/hr, not bothering to hire US workers at $15/hr

More info Modern Economics here
http://www.PragCap.com (Pragmatic Capitalism)

1. Oil/energy prices cause inflation, NOT federal deficits -evidence/facts here: http://rodgermmitchell.wordpress.com/2010/04/06/mo...
2. www.RodgerMitchell.com Daily Economics Empirical EVIDENCE by CEO/MBA economist at http://rodgermmitchell.wordpress.com/2009/09/07/in... & http://rodgermmitchell.wordpress.com/2011/07/09/wh...

3. Seven Deadly Frauds of Economic Policy http://moslereconomics.com/wp-content/powerpoints/... by Bank CEO/economist Warren Mosler or click for here for shorter summary of Modern Monetary Economics 101
4. http://MoslerEconomics.com -Daily Insightful & Most Accurate Empirical Economics Analysis by bank CEO/economist Warren Mosler

5. http://MikeNormanEconomics.blogspot.com One of the BEST Daily Analysis by Chief Economist & FoxBusiness-Bloomberg contributor expert Mike Norman, formerly of S&P




By ATrigo on 1/24/2012 3:34:34 PM , Rating: 2
quote:
FDR did this & that is
how we got antibiotics (gov doctor Ian Fleming discovered penicillin at UK gov hospital in 1928 but it languished on the shelf for 12 years because the conservative UK gov was in austerity mode so it took US deficit spending/money creation during WW2 to test & develop mass production of it),


Don't need to read more... I don't even want to know what else is there if you confuse Ian Fleming (who invented James Bond) with Alexander Fleming who discovered penicilin... sigh..


By PresidentThomasJefferson on 1/24/2012 7:13:58 PM , Rating: 3
Oops, my bad -I had just finished watching GoldenEye James Bond movie.. everything else still stands though, especially that gov subisidies supported nuclear power for about the 1st 30 years


By YashBudini on 1/24/2012 7:24:47 PM , Rating: 2
quote:
you confuse Ian Fleming (who invented James Bond) with Alexander Fleming who discovered penicilin

But it was Ian's Fleming character that needed all the penicillin in the first place.


"This is from the DailyTech.com. It's a science website." -- Rush Limbaugh














botimage
Copyright 2014 DailyTech LLC. - RSS Feed | Advertise | About Us | Ethics | FAQ | Terms, Conditions & Privacy Information | Kristopher Kubicki