15 Aug 2012

EPA's hazy outlook threatens to bankrupt coal-fired power plants

By By Rebekah Rast

The nearly five million visitors to the Grand Canyon National Park in Arizona each year stare in awe at the canyon's long 277 river miles that can be up to 18 miles wide and about a mile deep.

However, even amidst this beauty, the Environmental Protection Agency (EPA) is focused on the haze in the national park and says it is coming from a very important electricity source in the area.

The Navajo Generating Station (NGS), a coal-fired power plant that supplies electricity for the 14 pumping stations required to move water to southern Arizona?to about 80 percent of the state's population?is being blamed for creating poor air quality in the national park.

Currently, this power plant meets all federal clean air guidelines?except the EPA's interpretation of the Regional Haze Rule.

The goal of the EPA's Regional Haze Rule is the "remedying of any existing impairment of visibility" at 156 National Park and Wilderness areas throughout the U.S.  Congress approved of this amendment to the Clean Air Act in 1977, however, power to set standards of emissions was left to the states?not the EPA.  The EPA's role was to simply provide support.

Now the EPA seems to be trampling on the state's authority to control emissions standards by creating its own set of standards.  Is the EPA really that concerned about cleaning up haze or is this just another aggressive move to push out the coal industry?

If the EPA decides that the NGS power plant needs additional emissions control technology, owners of the power plant can expect to invest $1.1 billion, with no promise of improved air quality in the national park.

Furthermore, the plant is located on land owned by the Navajo Nation.  Its long-term lease with the tribe expires in 2019.  If the power plant operators can't guarantee a renewed lease beyond 2019, investing more than $1 billion into the plant isn't a viable option.  Depending on the EPA ruling, NGS might shutdown?costing 1,000 jobs, 90 percent of them belonging to the Navajo tribe.

Not only would this hurt the local economy, already plagued with high unemployment, but it would effectively destroy the water source to southern Arizona?leading to skyrocketing water rates.

How does the EPA get away with destroying communities like this one?

A political game.  It is no secret that many environmental groups ally with the EPA.  But what if these groups don't think the EPA is doing its job or going far enough? They sue.  The EPA then settles agreeing to fix the problem. Therefore a court-imposed deadline on the EPA leaves it with no other option but to override the state's regulations and enforce its own controls.

The U.S. Chamber of Commerce, in a report titled, "EPA's New Regulatory Front: Regional Haze and the Takeover of State Programs," highlights how the EPA, along with court-mandated deadlines, has wheedled its way into state territory by delaying state plans for emission control.

"By combining this tactic of delaying approval of the state plans with Sue and Settle and a court-imposed deadline to act, EPA has manufactured a loophole to provide itself with the ability to reach into the state haze decision-making process and supplant the state as decision maker. EPA has, effectively, engineered a way to get around the protections of state primacy built into the Regional Haze statute by Congress."

Get full story here.

14 Aug 2012

Taxpayer money to faltering battery manufacturer

By Grassley Press

Thune, Grassley Question Obama Administration on Taxpayer Funding of Faltering Battery Manufacturer Following Planned Chinese Investment

WASHINGTON, D.C.–U.S. Senators John Thune (R-S.D.), Chairman of the Senate Republican Conference, and Chuck Grassley (R-Iowa), Ranking Member of the Senate Judiciary Committee, today sent a letter to the Obama administration's Department of Energy (DOE) questioning the use of taxpayer dollars to shore up another faltering stimulus-funded company, A123 Systems Inc. Last week, a Chinese-based company, Wanxiang Group Corp., announced a substantial investment in the U.S. battery manufacturer, which could result in Chinese ownership of the company that could still receive over $100 million in U.S. taxpayer funds.

Thune and Grassley sent a letter to the DOE on June 25th requesting more information on Stimulus money transferred to A123 as it related to the taxpayer-backed loan guarantee to the troubled auto company Fisker. The Obama administration failed to address the senators' questions in a response letter.

The text of the senators' letter sent today is included below.

 

August 14, 2012

 

Dr. Stephen Chu

Secretary

Department of Energy

1000 Independence Avenue, SW

Washington, DC 20585

 

Dear Secretary Chu:

We write today in regards to the Department of Energy (DOE) grant to A123 Systems, Inc., and the recent announcement of Wanxiang Group Corp, a China-based company, to heavily invest in the U.S. battery manufacturer.

In 2009, A123 was awarded a $249.1 million grant through the American Reinvestment and Recovery Act of 2009 (Recovery Act).  In a letter dated June 25, 2012, we asked you how much of this grant has yet to be transferred to A123.  Although you failed to answer this straightforward question, media reports indicate that A123 has approximately $120 million of the $249.1 million grant currently outstanding.

Recently, A123 and the China-based Wanxiang announced a $450 million deal to save the struggling battery manufacturer.  According to media reports, Wanxiang will purchase $200 million of A123's secured debt and provide up to an additional $250 million in financing.  A key part of this transaction gives Wanxiang the option to transfer some of this debt into ownership of the company, which could result in Wanxiang owing 80 percent of A123.

Billions of U.S. taxpayer dollars have flowed to foreign companies through the Recovery Act, and we are concerned that the recent announcement could lead to even more taxpayer dollars going overseas.  Given that A123 could soon be owned by a Chinese company, please answer the following questions with regards to this transaction and A123's outstanding Recovery Act grant:

1.         How much of A123's $249.1 million Recovery Act grant is still outstanding?

2.         Considering that A123 has already received millions of U.S. taxpayer dollars and could potentially receive up to $450 million from a foreign company, does A123 need additional taxpayer dollars to continue its operations?

3.         If the A123-Wanxiang transaction is approved, how will that impact future distributions of A123's Recovery Act grant, if at all?

4.         If the A123-Wanxiang transaction is approved and Wanxiang exercises its option to convert A123's debt into equity, does DOE still plan to distribute the unused portion of A123's Recovery Act grant?  If so, why?

5.         What assurances does DOE have that Wanxiang will not simply wait until the additional grant money is awarded and then exercise its option to convert A123's debt into ownership of the U.S.-subsidized company?  Would DOE view that as an appropriate outcome?  If so, why?

6.         What assurances, if any, does DOE have that the A123-Wanxiang transaction and additional DOE funding through the Recovery Act will not lead to a transfer of taxpayer-funded intellectual property to a China-based company, or that the taxpayer funded manufacturing jobs will remain in the United States?

7.         With the recent announcement that Wanxiang will be investing in A123, will the DOE place additional milestones on A123's progress before awarding the additional Recovery Act grant dollars, and if so, what would those be?   What assurances does DOE have, if any, that A123 has solved its technical problems and that A123 will become profitable in the near future?

8.         In an August 3, 2012, letter to us, Acting Executive Director of DOE's Loan Program Office David Frantz wrote that, "(t)he Department is in constant dialogue with A123 to stay abreast of progress, challenges, plans and developments to assure that the project is meeting the objectives as defined in the grant.  DOE is also continually monitoring risk and financial conditions.  As part of this "continual monitoring" when did DOE become aware of A123's pending transaction with Wanxiang?

9.         Did DOE raise any objection to this transaction?  If so, when?  Please provide documents supporting any objection raised by DOE to this transaction.

Thank you for your cooperation and attention in this matter.  We would appreciate a response by August 21, 2012.

Sincerely,

 

John Thune

Charles Grassley

-30-
14 Aug 2012

Loebsack Welcomes New Report Highlighting Growth of Wind Energy Jobs

By Joe Hand

Renews call for extension of Wind Tax Credit

Washington, D.C. - Congressman Dave Loebsack today welcomed the release of a report from the U.S. Energy Department that highlights the surge in manufacturing and jobs directly related to the wind energy sector.  Loebsack has been a longtime supporter of wind energy programs and has been leading the fight in Congress to extend the Production Tax Credit (PTC).  He has visited wind energy plants across Iowa to see firsthand the need for stability that an extension of the PTC would provide and has repeatedly urged the House and Senate leadership to protect these good Iowa jobs.  Loebsack was also named a USA Wind Champion by the American Wind Energy Association for his ongoing support of wind energy in Iowa and working to extend the PTC.

"The release of this report confirms what many Iowans already know - that the wind energy industry across the state is strong and provides good jobs in our local communities," said Loebsack.  "Congress must get its act together and pass a long-term extension of the Production Tax Credit and not block the continued growth of the wind industry here in Iowa.  If the tax credit is not extended on a long-term basis, it will create uncertainty and put Iowa jobs and the Iowa economy in jeopardy."

A copy of the report can be found here.

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14 Aug 2012

QC Workers Say It's Time to Raise the Minimum Wage to help Working Families

By Rick Martin

New report shows increasing federal minimum wage would give more than 28 million American workers a raise, create jobs, and give boost to local economy

(Rock Island County, Ill) - A new report from the Economic Policy Institute (EPI) shows more than 1,238,225 workers in Illinois would benefit, directly or indirectly, from an increase to the federal minimum wage (see attached report).

Increasing the federal minimum wage from $7.25 to $9.80 per hour would give these workers a raise while generating approximately 4,500 jobs in Illinois, over three years, finds the new EPI Issue Brief authored by Doug Hall, How raising the federal minimum wage would help working families and give the economy a boost.

Nicole Thompson, a minimum wage worker in Rock Island, says a raise in the minimum wage would greatly help her family pay for basic necessities like food and utilities "Sometimes I have to go to the food pantry just to feed my family." Thompson works more than 40 hours a week.

In contrast to prevailing myths about minimum-wage workers, raising the federal minimum wage would benefit millions of workers across demographic groups, not just teenage part-time workers. Almost 88 percent of workers who would be affected are at least 20 years old. Female and non-minority workers would benefit disproportionately from the increase; women comprise nearly 55 percent of those affected, and non-Hispanic white workers make up about 56 percent.

While increasing the minimum wage immediately benefits the lowest-paid workers through boosted earnings, it also yields positive effects on the larger economy. Raising the federal minimum wage to $9.80 would put nearly $40 billion in the hands of directly and indirectly affected families, augmenting their spending power in the local economy. In return, these families would be more likely than any other income group to spend these extra earnings immediately on basic needs or services they could not previously afford.

[mog1] This additional spending power would be a useful tool to spur job growth, as employers would need to hire new staff to keep up with heightened demand for goods and services. In fact, an increase in the federal minimum wage from $7.25 to $9.80 per hour would result in a net increase in economic activity of approximately $25 billion, generating approximately 100,000 new jobs. This hike would have a positive impact across the country, with job creation in every state.

EPI researchers show that raising the minimum wage would provide a substantial lift to the national economy and benefit workers still reeling from the effects of the recession, generating almost $40 billion in increased wages.

"With the national unemployment rate not budging below 8.0 percent, now is the perfect time to raise the minimum wage," said Hall. "Not only will it generate billions of new dollars for the economy while adding new jobs when we sorely need them, it will begin to address the wage stagnation working families have faced during the last four decades, while putting more money in their hands when they need it most."[mog2]

###

14 Aug 2012

Energy Report: Iowa Wind Energy Production Surges, Supporting Jobs and Diversifying U.S. Energy Economy

By US Dept of Energy

Uncertainty Surrounding Production Tax Credit Threatens Remarkable Expansion

WASHINGTON - The Energy Department released a new report today highlighting strong growth in the U.S. wind energy market in 2011, increasing the U.S. share of clean energy and supporting tens of thousands of jobs, and underscoring the importance of continued policy support and clean energy tax credits to ensure that the manufacturing and jobs associated with this booming global industry remain in America. President Obama has made clear that clean, renewable wind energy is a critical part of an all-of-the-above energy strategy that aims to develop more secure, domestic energy sources, while strengthening American manufacturing.    According to the 2011 Wind Technologies Market Report, Iowa is one the country's largest and fastest growing wind markets, ranking second among all U.S. states in percentage of in-state electricity generation from wind power. The report finds that in 2011, Iowa installed 647 megawatts (MW) of new wind power capacity, bringing its total to over 4,300 MW, or enough to power about 1 million homes. With this installed capacity, Iowa can generate about 20 percent of its electricity from wind energy.

"This report shows that America can lead the world in the global race to manufacture and deploy clean energy technologies," said Energy Secretary Steven Chu.  "The wind industry employs tens of thousands of American workers and has played a key role in helping to more than double wind power over the last four years. To ensure that this industry continues to stay competitive, President Obama has called on Congress to extend the successful clean energy tax credits, which are benefitting businesses and manufacturers nationwide."

Nationally, wind power represented a remarkable 32 percent of all new electric capacity additions in the United States last year and accounting for $14 billion in new investment.  According the report, the percentage of wind equipment made in America also increased dramatically.  Nearly seventy percent of the equipment installed at U.S. wind farms last year - including wind turbines and components like towers, blades, gears, and generators - is now from domestic manufacturers, doubling from 35 percent in 2005. See an interactive map of manufacturing facilities across the U.S., including those in Iowa HERE.

The report also finds that in 2011, roughly 6,800 megawatts (MW) of new wind power capacity was added to the U.S. grid, a 31 percent increase from 2010 installations.  The United States' wind power capacity reached 47,000 MW by the end of 2011 and has since grown to 50,000 MW, enough electricity to power 13 million homes annually or as many homes as in Nevada, Colorado, Wisconsin, Virginia, Alabama, and Connecticut combined. The country's cumulative installed wind energy capacity grew 16 percent from 2010, and has increased more than18-fold since 2000. The report also finds that six states now meet more than 10 percent of their total electricity needs with wind power, with Iowa ranking second nationally.

The growth in the industry has also led directly to more American jobs throughout a number of sectors and at factories across the country.  According to industry estimates, the wind sector employs 75,000 American workers, including workers at manufacturing facilities up and down the supply chain, as well as engineers and construction workers who build and operate the wind farms. In Iowa alone, the industry supported 4,000 to 5,000 direct and indirect jobs in 2010. For instance, at ACCIONA Windpower's West Branch assembly plant 100 workers are working to produce 1.5 MW and 3 MW wind turbines. In Des Moines, Keystone Electrical Manufacturing Company has seen power control system orders from the wind industry grow from almost nothing a decade ago to nearly 22 percent of gross sales today.

Technical innovation allowing for larger wind turbines with longer, lighter blades has steadily improved wind turbine performance and increased the efficiency of power generation from wind energy.  At the same time, wind project capital and maintenance costs continue to decline, driving U.S. manufacturing competitiveness on the global market. For new wind projects deployed last year, the price of wind under long-term power purchase contracts with utilities averaged 40 percent lower than in 2010 and about 50 percent lower than in 2009, making wind competitive with a range of wholesale power prices seen in 2011.

Despite these recent technical and infrastructure improvements and continued growth in 2012, the report finds that 2013 may see a dramatic slowing of domestic wind energy deployment due in part to the possible expiration of federal renewable energy tax incentives. The Production Tax Credit (PTC), which provides an important tax credit to wind producers in the United States and has helped drive the industry's growth, is set to expire at the end of this year. The wind industry projects that 37,000 jobs could be lost if the PTC expires. Working in tandem with the PTC, the Advanced Energy Manufacturing Tax Credit provides a 30 percent investment credit to manufacturers who invest in capital equipment to make components for clean energy projects in the United States. President Obama has called for an extension of these successful tax credits to ensure America leads the world in manufacturing the clean energy technologies of the future.

See the full annual report and download underlying data produced by the Energy Department's Lawrence Berkeley National Laboratory HERE.

###

10 Aug 2012

Another trillion dollars closer to the fiscal cliff

By Rick Manning
By Rick Manning

The Congressional Budget Office provided a glimpse at the 10-month mark of the federal fiscal year 2012, and the results are grim.

Outlays are virtually the same through 10 months of 2012 as they were in 2011 at $3 trillion and revenues collected during this same period are slightly higher at approximately $2 trillion.  This means that our nation is guaranteed to run another trillion dollar-plus budget deficit this year.

The nitty gritty numbers show that in the federal fiscal spending year ending Sept. 30, 2011, the government ended up spending more than $3.6 trillion with revenues of $2.3 trillion leaving a $1.3 trillion deficit ? that's $1,300,000,000,000.00.  If laid end to end, 1.3 trillion dollar bills would go around the circumference of the earth 5,040 times.

If the spending and revenue of the first 10 months of FY12 continue at the same rate through the end of the year, FY12 will be slightly less disastrous with outlays projected to hold steady at $3.6 trillion while revenues increase to $2.4 trillion leaving a $1.2 trillion deficit give or take $50 billion.

That makes four consecutive years that Obama has presided over a budget deficit in excess of $1.2 trillion and more than $5 trillion added to the deficit on his watch.

The chart below from the Office of Management and Budget demonstrate the reality of the budget wars in D.C. and provides some small hope to those who have been frustrated by House Republicans' seeming inability to win the spending battle.  If there is solace to be found, the fact that actual outlays are a full $200 billion short of Administration estimates is some small win.  It is this flattening of the outlays that is largely responsible for the meager reduction of our exploding deficit that was accomplished.

Before our nation's budget cutters go howling in the streets declaring victory is near, if this Congress had just held spending to the same levels as they were the year they were elected, the budget deficit would have dropped by around $150 billion more.

While Obama flies courtesy of the taxpayer around the country declaring a need for higher taxes, the point that he hopes no one notices is that during the Clinton Administration tax revenues only exceeded $2 trillion one time in his last year FY 2000, but in that year, outlays were under $1.8 trillion. Today, revenues are projected to have grown by 20 percent since 2000, while outlays have doubled in those 12 years.

Get full story here.

08 Aug 2012

AARP Iowa Comment on New National AARP Survey of Voters 50+

By Ann Black

AARP SURVEY: NEW "ANXIETY INDEX" REVEALS ECONOMIC ISSUES FACING, DRIVING VOTERS 50+ IN 2012 ELECTIONS

Across party lines, voters want more information candidates' plans to strengthen Social Security and Medicare.

WASHINGTON - In the coming November elections, a key group of voters - non-retired baby boomers ages 50-64 - are driven by economic anxieties that extend well beyond the single issue of jobs, according to the results of a new series of surveys by AARP.  All voters age 50+ want the candidates to better explain their plans for Social Security and Medicare, which will help them determine their votes.

50+ Voters' Financial Outlook: Dissatisfied and Anxious

The particular pressures facing boomer voters - across party lines - are reflected in a new "Anxiety Index," which measures their worries on issues including prices rising faster than incomes (75% worry somewhat or very often about this), health expenses (62%), not having financial security in retirement (73%) and paying too much in taxes (71%).  By comparison, 32% of these boomer voters regularly worry about being able to find a full-time job with benefits or keep up with their mortgage or rent (30%), issues that are more widely discussed as leading economic issues for voters in the coming election.

"We know the issue of jobs is very important to voters age 50-plus, but any meaningful discussion of the economy and this year's election has to include the future of Social Security and Medicare," said Nancy LeaMond, AARP Executive Vice President.  "For these voters, 'retirement security' and 'economic security' are largely the same thing."

Non-retired boomer voters are pessimistic about retirement.  Almost three-in-four (72%) believe they will have to delay retirement, and almost two-in-three (65%) worry they won't have enough to retire.  Half of these voters (50%) don't think they'll ever be able to retire. They overwhelmingly (59%) believe the recent economic downturn will force them to rely more on Social Security and Medicare.

Anxiety about retirement security is a main driver for all voters 50+.  Nearly seven-in-ten (69%) of retired voters 50+ worry about prices rising faster than their incomes, and almost half (48%) worry about having unaffordable health expenses, despite the relative security provided by Medicare.  Only four-in-ten (42%) African-American voters 50+ are confident that they will have enough money to live comfortably throughout their retirement.  Hispanic voters 50+ overwhelmingly say that the recent economic downturn negatively impacted their personal circumstances (84%) and will force them to rely more on Social Security and Medicare (69%).

50+ Voters and the 2012 Elections

Economic anxieties among voters 50+ are leading to a general dissatisfaction with political leaders.  Voters 50+ are as likely to say that their personal economic circumstances were negatively affected by political gridlock in Washington (78%) as by the economic downturn (77%).  Almost half (49%) of these voters disapprove of President Obama's job performance, and more than eight-in-ten (81%) disapprove of Congress.  As of now, voters 50+ evenly are split in their presidential vote preference (45% for President Obama, 45% for Governor Romney, and 10% not sure).

The concerns of 50+ voters highlight the importance of Social Security and Medicare as election issues.  They think the next president and Congress need to strengthen Social Security (91%) and Medicare (88%).  They also overwhelmingly (91%) think that these issues are too big for either party to fix alone and require Republicans and Democrats to come together.

Voters 50+ are looking to the candidates for more information on these key issues.  These voters overwhelmingly think the candidates have not done a good job of explaining their plans on Social Security (67%) and Medicare (63%).  Moving forward, these voters - across party lines - say that getting more information on the candidates' plans on Social Security (72%) and Medicare (70%) will help them determine their vote on election day.

"The message from voters 50+ is clear," added LeaMond.  "In a razor-tight election, candidates have a major opportunity to reach key voters by speaking about their plans on Social Security and Medicare - and they are making a huge gamble if they ignore them."

Earlier this year, AARP launched You've Earned a Say, a national conversation to ensure that Americans have a say in the future of Social Security and Medicare.  Through You've Earned a Say, AARP is taking the discussion about the future of Medicare and Social Security out from behind closed doors in Washington.  To date, more than 2.1 million Americans have engaged with You've Earned a Say to share their thoughts about how best to protect and strengthen health and retirement security for today's seniors and future generations.

For more information, please visit www.earnedasay.org.  For complete results of AARP voter surveys, please visit www.aarp.org/voters50plus.

Methodology

AARP commissioned Hart Research Associates and GS Strategy Group to conduct a series of surveys of registered voters ages 18+, which were conducted by telephone July 10-16, 2012.  For the national survey, blinded telephone interviews were conducted with 1,852 registered voters (core sample of 1,001, plus oversamples of voters 50+, African American voters 50+ and Hispanic voters 50+).  The margin of error for the primary national sample of 1,001 is ±3.1%, for the sample of 536 non-retired baby boomers it is ±4.2%, and for the sample of 1,331 voters age 50 and over the margin of error is ±2.7%.  Additional oversample surveys were conducted in Colorado, Florida, Nevada, Ohio, Virginia and Wisconsin.

About AARP

AARP is a nonprofit, nonpartisan organization, with a membership of more than 37 million, that helps people 50+ have independence, choice and control in ways that are beneficial to them and society as a whole. AARP does not endorse candidates for public office or make contributions to either political campaigns or candidates. We produce AARP The Magazine, the definitive voice for Americans 50+ and the world's largest-circulation magazine; AARP Bulletin, the go-to news source for the 50+ audience; AARP VIVA, a bilingual lifestyle multimedia platform addressing the interests and needs of Hispanic Americans; and national television and radio programming including My Generation and Inside E Street. The AARP Foundation is an affiliated charity that provides security, protection, and empowerment to older persons in need with support from thousands of volunteers, donors, and sponsors. AARP has staffed offices in all 50 states, the District of Columbia, Puerto Rico, and the U.S. Virgin Islands. Learn more at www.aarp.org.
08 Aug 2012

Costly taxpayer mortgage bailout rejected by Federal Housing official

By Americans for Limited Government
DeMarco resists costly taxpayer bailout on mortgages

By Robert Romano

On July 31, Federal Housing Finance Agency (FHFA) acting director Edward DeMarco once again rejected an Obama Administration plan to bail out borrowers who owe more on their mortgages than their homes are worth, citing cost concerns.

The FHFA, which administers the government's conservatorship of Government Sponsored Enterprises (GSEs) Fannie Mae and Freddie Mac, undertook an analysis of the program, showing reductions of mortgage principal owed for certain borrowers would cost taxpayers more and even potentially result in more defaults.

Even under the program's best case scenario, the Agency estimated just 248,000 borrowers would be eligible for principal forgiveness under the Home Affordable Modification Program Principal Reduction Alternative ? or just 2.2 percent of the 11.1 million borrowers nationwide who are underwater.

That means that even if DeMarco had implemented the program, approximately 97.8 percent of underwater borrowers would not have even been eligible. Therefore, more than $700 billion of the $717 billion of negative equity in homes nationwide would have remained unaddressed.

In other words, even if DeMarco had relented, this bailout would have done almost nothing to solve the problem of underwater borrowers. Yet, Treasury Secretary Timothy Geithner, in a letter to DeMarco responding to his decision not to implement the bailout, maintained the fiction that the program would somehow "help repair the nation's housing market".

New York Times columnist and economist Paul Krugman goes further, calling for DeMarco to be fired for not implementing a bailout almost nobody would qualify for, writing, "even if there's a small net cost to taxpayers, debt relief is still worth doing if it yields large economic benefits."

But even if debt relief did yield economic benefits in certain cases, this is not one of them.

According to the FHFA, some 80 percent of underwater borrowers who have GSE mortgages are current on their payments. But that could change if a bailout is implemented.

As DeMarco noted in his letter to Congress, selective application of the program could create a perverse incentive for borrowers to miss payments and potentially default in a misguided attempt to qualify for the bailout.

Under the program's best case scenario ? where all 248,000 underwater borrowers qualify ? if just 19,000 of the 10.8 million remaining borrowers who did not were to strategically default, it would more than offset any potential benefit derived.

As a result, "HAMP PRA would result in a net loss to taxpayers, even using the model-based assumptions most favorable to the program," wrote DeMarco.

Of course, it's all political. Don't let anyone tell you different.

"Obama's goal is to build a constituency of borrowers underwater on their mortgages with the hope that they might ? emphasis on might ? be able to get some relief," said Americans for Limited Government President Bill Wilson, calling it "nothing more than a cynical election year ploy."

Get full story here.

ObamaCare Going Into Effect, Maine Fights Back

Video by Frank McCaffrey

Get permalink here.


K Street Republicans' war on Palin

By Rick Manning

As originally published at TheHill.com.

I'm getting sick of the rewriting of 2008 presidential campaign history as K Street Republicans continue to assault Sarah Palin in the fear that a similarly conservative Republican will rise to the top of the VP sweepstakes.

It has been so fashionable in D.C. Republican circles to bash the Palin nomination as a mistake, ill-conceived or even disastrous, that even Dick Cheney has gotten into the act.

These self-serving attempts to change history are nothing more than a smear campaign designed to influence the Romney VP pick by obscuring the truth that the choice of Sarah Palin to be the vice presidential nominee was truly inspired.

The McCain campaign was in the doldrums. Unable to match the youth and enthusiasm of the inexperienced but expert campaigner from Illinois, McCain needed to shake up the race, and Palin accomplished just that.

Her incredible acceptance speech, delivered in spite of a faulty teleprompter (try that, Mr. President), gave the nation a new face and voice for conservative principles just when it was desperately needed.

That same energy from the convention rolled over into the 2010 election, embodied in the Tea Party movement and leading Republicans to a historic victory.

History shows that it was the McCain campaign that blew any chance at election when it suspended its efforts fully three weeks after the nomination to come back to D.C. and rubber-stamp the TARP bailout.

Having agreed upon the legislative actions that socialized losses by too-big-to-fail banks, McCain lost all ability to differentiate between himself and the big-government policies advocated by Obama.

Pollster Scott Rasmussen reported on Sept. 20, 17 days after the Palin pick, that his daily Presidential Tracking Poll "shows Barack Obama with 48 percent of the vote and John McCain with 47 percent. While Obama's lead is statistically insignificant, it is the first time he has held even a single-point advantage in a week and a half. One week ago today, McCain was up by three points."

For the mathematically challenged, this means that less than two months from the election, McCain and Palin were leading in the polls.

Rasmussen goes on to say, "Obama's gains over the past week came as the focus shifted from the momentum generated at the Republican National Convention to the economic rollercoaster ride that played out on Wall Street. Few agreed with McCain's initial statement about the economy being fundamentally sound and neither candidate has yet convinced voters that he will bring the needed changes to the financial markets."

Get full story here.

 

ALG Editor's Note: In the following featured editorial from the Pittsburgh Tribune-Review, the board lays waste to Harry Reid's claims that Mitt Romney paid no taxes:

 

The Reid smear: Vermin droppings

Harry Reid beats his wife.

The Senate majority leader also leaves restaurants without paying his bill.

And the Democrat of Nevada lets his dog poop in his neighbor's yard and never cleans it up.

We don't know any of this to be true, mind you. But we have heard these allegations. From whom? Sorry, we're not in the habit of revealing our sources.

Of course, it's up to Mr. Reid to prove otherwise.

Reid doubled-down last week on his allegation that presumptive Republican presidential nominee Mitt Romney did not pay any federal taxes for a 10-year period. An unnamed investor with Bain Capital, Mr. Romney's former company, told him so, Reid said.

And, he added, it's now up to Mr. Romney to disprove the anonymous and undocumented charge.

"So the word is out that (Romney) hasn't paid any taxes for 10 years," Reid said from the Senate floor, rhetorically elevating a smear to a faux fact like so many vermin droppings. "Let him prove that he has paid taxes, because he hasn't."

Romney denies the charge. "It's time for Harry to put up or shut up" and produce proof of his allegation, he said.

Expect that to happen on the same day that Harry Reid actually is arrested for beating his wife, for not paying his restaurant tab and letting Fido do the big No. 2 in the neighbor's yard.

Get full story here.

07 Aug 2012

Has Your Teenager Given Up Finding a Job?

By Ginny Grimsley
Money Expert Offers Productive Alternatives

As we mature through our teenage years, one of our first major steps into adulthood is working that first job.

"A first-time job may be awkward and an all-around rude awakening for many, but the accompanying lessons of responsibility and perseverance are absolutely vital," says financial expert Mark Hansen, author of Success 101 for Teens (www.7habitsandtraits.com). "Also, we get our first taste of earned money - how to spend it, and the value of budgeting it for larger purchases."

But this summer continues a trend in recent years: there simply are not enough jobs to go around during this rough economy. The 2011 summer employment average - peak season for those aged 16 to 24 - was only 48.8 percent for young people, according to data from the Bureau of Labor Statistics. That's the lowest percentage since the Bureau began collecting such data, in 1948.

This year, so far, the rate is virtually the same, and many young people have simply given up their job search.

"This is a potentially devastating trend with long-lasting consequences," says Hansen, whose adult life has been largely defined by his response to the obstacles he overcame after being hit by a car as a child.

"We know the negative effects experienced by adults who go without a job for long periods, but unemployment can be worse for teens. Think about idleness, an increased risk of juvenile delinquency, undeveloped or atrophied technical and social skills and, of course, a lack of money."

Just because there are fewer jobs, however, doesn't mean young people are powerless to improve their situation. Hansen offers alternatives for self-motivated teens:

• Untapped markets are everywhere: It may be true that the once low-hanging fruit, such as fast-food positions, are being taken by adults, but a teen's job search needn't end there. Today's young people have a distinct advantage over older folks - they were raised on computers, which may include knowledge of graphics software, sound and video programs and much more. These skills may be parlayed to help market events for neighbors, family members or a small business.

• Good, old-fashioned manual labor: Computers and related skills have changed the world, but a smartphone is not going to cut a neighbor's grass, clean his garage or move his furniture. Consider offering a competitive price for these tasks; neighbors are often sympathetic to young people looking to make an honest dollar.

• Volunteer your time: Nowadays, high school students receive credit for dedicated volunteer hours, which are routinely applied to scholarship efforts. Beyond the expectation of a corollary reward, youth are more than ever attuned to the innate sense of satisfaction gained from helping others. Several studies have shown that people are rewarded with a sense of purpose and well-being while helping others, according to the American Psychological Association.

• Beefed-up allowance for added chores: Parents are busier than ever these days, which often mean chores around the house suffer. While most may not be able to afford the kind of wage a teen could earn at McDonalds, an increase in allowance can nevertheless motivate a teen who needs spending money.

About Mark Hansen

A successful businessman, a former Palm Beach County, Fla., elected school board member and motivational speaker, Mark has dedicated his life to helping young people overcome obstacles and deal with the challenges of daily living. Struck by a car and nearly killed as a child, Mark fought back through positive actions and reactions to all that he had to overcome. As a result, he relates to teens in a very special way.  Through books such as, "Success 101 for Teens: Dollars and Sense for a Winning Financial Life," and seminars, Mark Hansen is driven to make an impact on teens and young adults and to empower them to rise above and triumph over life's obstacles.

07 Aug 2012

Governor Quinn Signs Pro-Jobs Law to Extend Illinois Enterprise Zone Program

By Erin Wilson

Law Provides Businesses with Greater Certainty, Will Boost Economic Development Across Illinois

CHICAGO - August 7, 2012. As part of his agenda to grow jobs and increase economic development across Illinois, Governor Pat Quinn today signed a new law to extend the Illinois Enterprise Zone program, a state and local partnership to encourage economic growth across the state. Senate Bill 3616 will create greater long-term stability for businesses, attract more investment in Illinois and protect the interests of taxpayers. The new law provides for a 25-year extension of the program, which creates a process for existing communities with zones and new communities to apply for the designation

"We want our businesses to invest, grow and put more Illinois residents to work," Governor Quinn said. "This new law provides employers with the long-term certainty they need to grow, and strengthens oversight standards to ensure accountability from businesses that participate in the program."

The new law makes three major changes to the state's Enterprise Zone program:

  • Extends the sunset of the Illinois Enterprise Zone program 

The law extends the Enterprise Zone Program for 25 years, and creates a process for existing communities with zones and new communities to apply for the designation. Under the new procedure, the Department of Commerce and Economic Opportunity (DCEO) will accept and review all applications to determine if they meet three of 10 criteria to be certified as a zone, which includes unemployment rate, infrastructure, plant closure/job loss, education, poverty rates, and high commercial and industrial vacancy.

  • Creates an Enterprise Zone Board
    The Enterprise Zone Board will approve or deny enterprise zone applications certified and scored by DCEO. The board will consist of five members: the director of DCEO, or his or her designee, who shall serve as chairperson; the director of the Department of Revenue, or his or her designee; and three members appointed by the Governor.
  • Increases reporting requirements of companies receiving tax benefits from the Enterprise Zone and High Impact Business programs

The law increases accountability by requiring that any business receiving tax incentives due to its location within an enterprise zone or its designation as a High Impact Business must annually report the total Enterprise Zone or High Impact Business tax benefits received. The report must be broken down by incentive category and enterprise zone, to the Department of Revenue. Failure to report data shall result in ineligibility to receive incentives.

SB3616, sponsored by Sen. Michael Frerichs (D-Champaign) and Rep. John Bradley (D-Marion), passed the General Assembly unanimously and was supported by many in the business community, including the Illinois Municipal League, Caterpillar, the Illinois Chamber of Commerce and the Illinois Manufacturers Association. The new law renews the Illinois Enterprise Zone program, which is one of the state's most vital economic tools. During its history, 42,543 businesses have invested in enterprise zones. Businesses located in enterprise zones have created 354,762 jobs and retained 536,562 jobs. According to the National Conference of State Legislatures, 43 states, including Illinois, have enterprise zone programs under a variety of different program names.

"By helping our communities become enterprise zones, we are giving them a leg up on the competition in drawing companies to their areas, " said Rep. Bradley. "I would like to thank Governor Quinn for signing this law to help bring businesses to every corner of Illinois."

"The Illinois enterprise zone program is a vital tool for growing jobs and attracting investment in Illinois. We applaud Governor Quinn and the General Assembly for taking action and sending a positive message to the business community," said Greg Baise, president & CEO of the Illinois Manufacturers' Association, a statewide business group representing nearly 4,000 companies. "Enacting a long-term extension of this successful program is another step in making Illinois a good place to do business and providing stability for employers." 

"As economic developers, we compete every day for jobs and investment with locations throughout the country and around the world and the Illinois Enterprise Zone program has kept us in the game for nearly 30 years," said Craig Coil, president of the Illinois Enterprise Zone Association and the Economic Development Corporation of Decatur & Macon County. "By passing and signing this bill, Governor Quinn and the General Assembly have helped all of us who are involved in economic development in Illinois and the communities we represent remain competitive for the foreseeable future."

"We are listening to what companies say they need to thrive," said David Vaught, acting director of the Department of Commerce and Economic Opportunity. "They tell us that the Illinois Enterprise Zone program is one of the most effective economic development tools in the state's tool box. By extending the program for 25 years, companies have a predictable environment in which they can create jobs and fuel economic growth."

SB 3616 is effective immediately. The Governor will make stops today in Chicago, Rockford, Quad Cities, Peoria, Decatur and Mount Vernon to highlight the new law that will boost economic growth in communities across Illinois.

For more information on why Illinois is the right place for business, visit http://illinoisbiz.biz.

 

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