The Big Fail: “Look At The Reporting…It’s Pretty Clear”

White House Insists The President Didn’t Outsource Jobs And Is Instructing Reporters To Check Their Facts – Here They Are

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When Asked If The Stimulus Created Jobs Overseas, White House Press Secretary Jay Carney Responded: “Again, No. It Did Not. … I Would Look At The Reporting On This, It’s Pretty Clear.” CNN’s DAN LOTHIAN: “In the process though, did it also help boost jobs for some of those companies overseas?” CARNEY: “Again, no. It did not. For Americans. I would look at the reporting on this, it’s pretty clear.” (Jay Carney, White House Press Conference, Washington, D.C., 7/11/12)

• Watch Carney Spend Four Minutes Dodging Whether Stimulus Money Went Overseas

THE OBAMA CAMPAIGN, THE DNC, AND DEMOCRAT MEMBERS OF CONGRESS HAVE ADMITTED THAT STIMULUS MONEY WENT TO JOBS OVERSEAS

“The Obama Campaign Didn’t Dispute That Some Stimulus Dollars Went To Buy Foreign Products…” “The Obama campaign didn’t dispute that some stimulus dollars went to buy foreign products, but said the RNC and Romney attacks distort the record of stimulus spending and its positive effect on the U.S. economy.” (Neil King and Peter Nicholas, “Obama Stimulus Program Sent Jobs Abroad, GOP Says,” The Wall Street Journal , 7/10/12)

• DNC Spokesman Melanie Roussell: “Well, In Some Of These Cases, The Components For These Projects Were Built In Other Countries Because We Didn’t Have The Market For It Here.” (KPCC, 7/11/12)

Sen. Bob Casey (D-PA) Said Of The Green Energy Programs In The Stimulus That “Unfortunately, A Lot Of The Money That Has Gone Out Already Has Gone To Foreign Firms.” SEN. CASEY: “Well there’s a section of the recovery bill where dollars go to companies that are creating clean energy jobs. The problem we have now is that we’ve got lots and lots of companies that are benefiting, but unfortunately too many of them are overseas, in China and other places around the world. We want to make a correction to the Recovery bill so that we are creating American jobs with American tax dollars. And unfortunately, a lot of the money that has gone out already has gone to subsidize foreign firms.” (Fox News’ “ On The Record w Greta VanSusteren,” 3/3/10)

• Sen. Casey: “I Think They’d Be Wise To Try To Make Sure They’re Doing A Better Job Getting Dollars In The Hands Of U.S. Manufacturers, Creating U.S. Jobs, As Opposed To Saying Well, ‘Some Of The Money Is Going To Go Overseas; That’s Just The Way It Is.’ “‘I think they’d be wise to try to make sure they’re doing a better job getting dollars in the hands of U.S. manufacturers, creating U.S. jobs, as opposed to saying well, ‘Some of the money is going to go overseas; that’s just the way it is,’ he added. ‘I think that kind of tendency to resist is not in the best interest of our jobs, creating jobs here.’” (Sen. Chuck Schumer, Sen. Bob Casey, and Sen. Sherrod Brown, Press Conference, 3/3/10)

Sen. Chuck Schumer (D-NY) Said The Administration’s Response To Their Complaints That The Stimulus Was Going To Foreign Companies Was “Not Good Enough.”“‘Some of us complained about this to the administration back in November when this project was first announced, so it’s not that they don’t know about it, but the Energy Department in their reply said they were powerless to stop it because projects like this are automatically eligible for the grants. That answer is not good enough,’ Schumer said.” (Meredith Shiner, “Stimulus Money Goes Overseas,” Politico, 3/3/10)

• Schumer: “The Goal Of The Stimulus Is To Strengthen The American Economy, And That Means Creating Jobs Here In The U.S. Not In China.”“‘The goal of the stimulus is to strengthen the American economy, and that means creating jobs here in the U.S. not in China.’” (Meredith Shiner, “Stimulus Money Goes Overseas,” Politico, 3/3/10)

THE REPORTING IS CLEAR – STIMULUS MONEY CREATED JOBS OVERSEAS

Obama’s Advanced Manufacturing Tax Credits Went To Foreign Companies Operating In Low-Wage Countries

“The Apollo Alliance Estimates That Some 70 Percent Of America’s Renewable Energy Systems And Components Are Manufactured Abroad.” “The Apollo Alliance estimates that some 70 percent of America’s renewable energy systems and components are manufactured abroad. If America continues to import 70 percent of the clean energy systems and component parts demanded by new investments in renewable energy, it stands to lose out on an estimated 100,000 clean energy manufacturing jobs between now and 2015, and potentially a quarter million manufacturing jobs by 2030. Apparently, the case of the controversial West Texas wind farm was not an aberration; it was typical for the renewable energy world.” (“Winning the Race: How America Can Lead the Global Clean Energy Economy,” The Apollo Alliance and Good Jobs First, 3/4/10)

• John Podesta, Co-Chair Of The Obama-Biden Transition Project, Was On The Board Of The Apollo Alliance At The Time This Report Was Written. Other Members Included Phil Angelides, Representatives Of The SEIU And The United Steelworkers Union, And The Sierra Club. (“Winning the Race: How America Can Lead the Global Clean Energy Economy,”The Apollo Alliance and Good Jobs First, 3/4/10)

The Apollo Alliance Found That 41 Percent Of The Funds Awarded Through The Stimulus’ 48c Advanced Manufacturing Program Went To Foreign Based Companies Which Were Awarded On Average $20 Million Versus $11 Million For U.S. Companies. “The results are somewhat less encouraging when we look at the distribution in dollar terms. U.S.-based recipients account for only 59 percent of the total, reflecting the fact that the projects proposed by foreign-based companies tend to be larger in size and thus receive larger tax credits, which are calculated as a percentage of the intended investment. The average project involving a U.S.-based parent company is $11 million; for those with a foreign parent, the average is $20 million.” (“Winning the Race: How America Can Lead the Global Clean Energy Economy,” The Apollo Alliance and Good Jobs First, 3/4/10)

“In Total, The U.S. Has Awarded $458 Million In Advanced Energy Tax Credits To 23 Companies That Are Also Investing Money And Creating Jobs In Low-Wage Countries.” (“Winning the Race: How America Can Lead the Global Clean Energy Economy,”The Apollo Alliance and Good Jobs First, 3/4/10)

• 17 Of The 25 Foreign Companies That Received Advanced Energy Tax Credits Had Already Or Had Plans To Setup Operations Overseas In Low-Wage Countries. “Of the 25 foreign-based companies involved in 48C projects, we found that 17 have either already set up wind or solar production operations in low-wage countries or have plans to do so in the near future. These include 13 companies with plants in China: Alstom, BP, Brevini Power Transmission, Führlander, Gamesa, Mitsubishi Heavy Industries, Moventas, Nordex, Siemens, Suntech Power, Vestas, Winergy, and Yingli Green Energy (Suntech and Yingli are based in China). There are three with plants in India (BP, Gamesa and Winergy); two in Mexico (Ingeteam and Mitsubishi Heavy Industries, the latter a joint venture with TPI Composites); two in the Czech Republic (Flabeg and Schott); one in Brazil (Alstom); and one in Singapore (Renewable Energy Corporation).” (“Winning the Race: How America Can Lead the Global Clean Energy Economy,” The Apollo Alliance and Good Jobs First, 3/4/10)
• Six U.S. Based Companies That Received Awards Have Also Expanded Operations To Low Wage Countries Such As China, Mexico, Philippines And Malaysia. “Among the 65 U.S.-based 48C recipients, six companies, accounting for $52 million in 48C credits, have made significant new expansions of clean energy manufacturing operations in low-wage countries: Advanced Energy Industries has a plant in China. Energy Conversion Devices (parent of United Solar Ovonic) has a plant in Mexico and a joint venture in China. First Solar has a plant in Malaysia. SunPower has plants in the Philippines and Malaysia and uses a Chinese subcontractor. Timken has a joint venture in China. TPI Composites has a plant in China and a joint venture in Mexico.” (“Winning the Race: How America Can Lead the Global Clean Energy Economy,” The Apollo Alliance and Good Jobs First, 3/4/10)

The Apollo Alliance Found That Some Of The Companies That Received Advanced Manufacturing Tax Credits Are “Putting Their Primary Emphasis On Expanding Production Operations In Low-Wage Countries.” “While companies often do not divulge which markets a particular plant is meant to serve, what information is available indicates that at least some of the companies on the 48C list appear to be putting their primary emphasis on expanding production operations in low-wage countries.” (“Winning the Race: How America Can Lead the Global Clean Energy Economy,” The Apollo Alliance and Good Jobs First, 3/4/10)

• Advanced Energy Industries Received $1.2 Million And Stated That “The Majority Of Our Manufacturing Is Performed In Shenzhen, China.” “Advanced Energy Industries Inc. (based in Colorado; received $1.2 million in 48C credits). In its most recent 10-K annual report, the company states: ‘The majority of our manufacturing is performed in Shenzhen, China, where we produce our high-volume products. The remainder of our manufacturing locations, in Fort Collins, Colorado; Hachioji, Japan; and Vancouver, Washington, perform low-volume manufacturing, service and support.’” (“Winning the Race: How America Can Lead the Global Clean Energy Economy,” The Apollo Alliance and Good Jobs First, 3/4/10)
• First Solar Received $16.3 Million Despite Its Malaysian Plant Being 10 Times The Size Of Their Plant In Ohio. “First Solar Inc. (based in Arizona; received $16.3 million in 48C credits). In December 2009, the company announced plans for the addition of eight production lines for its solar module manufacturing operation in Kalim, Malaysia. The Malaysian operation was already more than 10 times the size (in square footage) of First Solar’s original plant in Perrysburg, Ohio.” (“Winning the Race: How America Can Lead the Global Clean Energy Economy,”The Apollo Alliance and Good Jobs First, 3/4/10)
• SunPower Received $10.8 Million But Manufactures Nearly All Of Its Products In Asia Or By A Third Party Contractor In China. “SunPower Corporation (based in California; received $10.8 million in 48C credits). Although 90 percent of SunPower’s sales come from the United States and Europe, it has been doing nearly all of its manufacturing in Asia. It produces solar cells at two facilities in the Philippines and is developing a third solar cell manufacturing facility in Malaysia. Almost all of its solar cells are combined into solar panels at the company’s solar panel assembly facility in the Philippines. Other solar panels are manufactured for the company by a third-party subcontractor in China.” (“Winning the Race: How America Can Lead the Global Clean Energy Economy,” The Apollo Alliance and Good Jobs First, 3/4/10)
• Suntech Received $2.1 Million And Told The SEC That It Will “Take Advantage Of Our Location In China, Where The Costs Of Skilled Labor, Engineering And Technical Resources … Tend To Be Lower Than Those In Developed Countries.” “Suntech Power Holdings Co. Ltd. (based in China; received $2.1 million in 48C credits). As one would expect, this Chinese company does most of its manufacturing in China and intends to go on doing so. In a filing with the U.S. Securities and Exchange Commission, Suntech states that its approach is ‘to take advantage of our location in China, where the costs of skilled labor, engineering and technical resources, as well as land, production equipment, facilities and utilities, tend to be lower than those in developed countries.’” (“Winning the Race: How America Can Lead the Global Clean Energy Economy,” The Apollo Alliance and Good Jobs First, 3/4/10)

The Apollo Alliance: “While the 48C credits are likely leading these companies to pay more attention to U.S. production, it is also possible that their American manufacturing activities are little more than fig leaves meant to hide the fact that they are mainly relying on offshore low-wage activities .” (“Winning the Race: How America Can Lead the Global Clean Energy Economy,” The Apollo Alliance and Good Jobs First, 3/4/10)

The Stimulus Paid For Hundreds Of Foreign Wind Turbines That
Created Thousands Of Jobs Overseas

During The First Two Rounds Of 1603 Awards, 695 Of The 982 Installed Wind Turbines Were Manufactured By Foreign Companies. “In the case of these 11 wind farms, according to data provided by the companies themselves in regulatory filings and collected by the American Wind Energy Association, 982 turbines were installed – 695 of them were manufactured by a foreign company.” (Russ Choma, “Overseas Firms Collecting Most Green Energy Money,” Investigative Reporting Workshop , 10/29/09)

• Data From The Renewable Energy Policy Project Shows That The Foreign Sourcing May Have Created As Many As 4,500 Manufacturing Jobs Overseas.“A study by the Renewable Energy Policy Project , a think-tank that advocates renewable energy technology research, estimates that for every 1,000 megawatts of wind energy that is developed, 4,300 jobs are created: 600 for operation and maintenance of the wind farms; 700 for the installation of new turbines; and 3,000 for manufacturing. The cash grants were given for the installation of 1,763 megawatts of capacity – 1,566 installed by foreign companies. Using the Renewable Energy Policy Project’s own numbers, as many as 4,500 manufacturing jobs may have been created overseas.” (Russ Choma, “Overseas Firms Collecting Most Green Energy Money,” Investigative Reporting Workshop , 10/29/09)

• Japan-Based Mitsubishi Power Systems, Which Installed At Least 382 Turbines Under The 1603 Program , Did Not Have A Single U.S. Factory When The Contract Was Awarded. “Mitsubishi Power Systems (Japan) which installed 382 turbines under the grant program, has no U.S. manufacturing. Under the manufacturing tax credit program announced on Jan. 8, the Japanese industrial titan will receive $5.1 million in credits if it opens a proposed facility in Fort Smith, Ark. Workers at the proposed $100 million facility, will assemble imported components. A patent dispute with General Electric held up the project, but a Jan. 9 ruling by the U.S. International Trade Commission in favor of Mitsubishi has allowed planning to continue.”(Russ Choma, “Overseas Firms Collecting Most Green Energy,” Investigative Reporting Workshop , Accessed 6/26/10)

$11 Million Went To Hire Call Centers 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 Parago 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)

$39 Million For Electric Delivery Trucks That Will Be Built In England

MSNBC Headline: “U.S. Stimulus Deal Buoys U.K. Factory’s Workers” (F. Brinley Bruton, “U.S. Stimulus Deal Buoys U.K. Factory’s Workers,”MSNBC, 10/29/09)

• $39 Million In Stimulus Funds Went To Manufacturing Electric Delivery Trucks In Coventry, England. “On Aug. 5, Obama unveiled plans that would allow Navistar to receive $39 million in federal money to build electric battery-powered commercial trucks with Modec. The funds were part of a larger pool of money being made available to American manufacturers. … But while Navistar and Modec eventually plan to establish manufacturing facilities in the United States, the first batch of their battery-powered vehicles will come off the shop floor in England, not America.” (F. Brinley Bruton, “U.S. Stimulus Deal Buoys U.K. Factory’s Workers,”MSNBC, 10/29/09)