Foreign Companies Cop 84 Percent of Stimulus Green Economy Funds

Updated 2 months, 3 weeks ago

Instead of creating thousands of new jobs for out-of-work Americans, the push for alternative energy is lining the pockets of foreign companies. A new study shows that of the $1.05 billion of stimulus funds spent on clean energy grants since Sept. 1, an astronomical 84 percent—or $849 million—has gone to foreign wind companies, with one firm collecting more than $500 million alone.

Russ Choma writes that the Investigative Reporting Workshop at American University ...

found the Spanish utility company Iberdrola S.A. has collected $545 million in grants through its U.S. subsidiary. And the money doesn’t even have to go to create jobs. The group reports there are few restrictions on how the grants can be used. In fact, more than $800 million has been given to firms for wind farms that were already producing electricity before they received the grants.

This revelation comes as the public is becoming aware of and outraged by China seeking $450 million in economic recovery funds to build a planned $1.5 billion wind farm in Texas. The farm will create 30 permanent jobs in the United States and 2,000 jobs in China.

United Steelworkers (USW) President Leo Gerard puts it bluntly:

We’ve got a message for Washington: Hell no! We’re not giving tax dollars to China. What’s wrong with these businesses and our government? It is the $787 billion American Recovery and Reinvestment Act of 2009. It’s not the Chinese Recovery and Reinvestment Act.

You can take action now. Click here to tell the U.S. Energy Secretary Steven Chu not to send our tax dollars overseas and that U.S. stimulus money must create American green jobs.

And it’s not just happening at the federal level. The Alliance for American Manufacturing reports a Massachusetts solar panel company is moving some jobs overseas after receiving $58 million in state aid and being touted by the governor as a symbol of the state’s economic future.

It doesn’t have to be this way. The Blue Green Alliance reported that developing a clean energy economy in the United States could create some 850,000 new manufacturing jobs. But ensuring creation of those jobs requires changes in policies on financing, tax credits and caps on carbon emissions and increased research and development.

More U.S. companies would be getting the grants if Congress had not watered down the Buy America provisions of the stimulus package, union leaders say.

The nation also needs an industrial policy that promotes, encourages and develops manufacturing. Gerard cites an article by Keith Bradsher of the New York Times in which he described China’s policy to become a world leader in renewable energy, which would include construction of wind turbine factories:

Calling renewable energy a strategic industry, China is trying hard to make sure that its companies dominate globally. Just as Japan and South Korea made it hard for Detroit automakers to compete in those countries—giving their own automakers time to amass economies of scale in sheltered domestic markets—China is shielding its clean energy sector while it grows to a point where it can take on the world.

29 comments on this story

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Showing 22 relevant reactions out of 29.

grace 2 months, 3 weeks ago on Wordpress

What do you think. Did you see any action plan here?

unioninportland 2 months, 4 weeks ago on Wordpress

The solution is for America to start supporting our manufacturing base with the right policies, trade agreements, and having a plan to do so. For example, the Apollo Alliance is working with allies to pass Sen. Sherrod Brown’s IMPACT Act that would help small- and medium-sized manufacturers retool to produce clean energy components–the parts that go into the wind turbines, solar arrays ... See all content Hide content

david50now 2 months, 4 weeks ago on Wordpress

all we get is the reports after the fact where was the AFL-CIO before. what’s wrong with the guy in washington looking out for labors interest… wake up and get on the job atleast you have one show you care about the ones that don’t

baymike51 3 months ago on Wordpress

And right under the nose’s of all those democrates that labor supported,huh. When are we gonna learn we don’t have any friends in Govt.. They hold us all in contempt. When do we start acting like Union people again? I’m all for shutting down the port where they come in, the truck or rail line they’ll be transported on, and the sites themselves! Now do ya think we have the leadership ... See all content Hide content

PAM Q. 3 months ago on Wordpress

Taking to the streets with civil disobedience is the only thing that will get attention here. I tried to click on the link above to let our Energy Secretary, Steven Chu, know of my displeasure, and your link did not even work. Talk, talk, talk…. when do we take action?

Paul B 3 months ago on Wordpress

Another betrayal by the Democratic Party whose candidates Labor worked long and hard to elect. When will we end this dysfunctional relationship and run our own Labor Party candidates who will really stand up for American workers?

Steve Neubeck 3 months ago on Wordpress

This topic was discussed at the national JWJ conference and nobody knew what to do about outsourcing the jobs to China

Frisco Worker 3 months ago on Wordpress

Instead of bemoaning the loss of jobs to foreign capital and helping to support U.S. capital U.S. labor needs to link-up with our brothers and sisters around the world, OUR FELLOW WORKERS, and begin the battle the needs to be fought against international capital. The present leadership of the AFL-CIO is incapable of such a struggle and do all in their power to keep us in the dark and away from such a course. ... See all content Hide content

T. Glick 3 months ago on Wordpress

This is outrageous!

The question I ask is how serious will you take it. Will it be all talk and no action, or will there be major mobilization.

Thanks for posting this article. I hope this opens some eyes.

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uberVU - social comments 3 months ago on Wordpress

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