It Reversed America’s Layoff Crisis. What happened in mid-2009 that suddenly boosted America out of recession and reversed the escalating trend of layoffs, which is measured here with the four-week moving average of initial unemployment claims that simply averages the number of Americans applying for jobless benefits? Was it the uptick of people buying tricorn hats or purchasing signs to call Obama a socialist/fascist/corporate cronyist?
Or maybe it was the result of markets calmed by government intervention infused with the sudden burst of spending via the only place from which it could come in such a crisis, the federal government? It Led To The Creation Or Saving Of 9 Million Jobs. The most untold part of the untold story of the stimulus is the dramatic way it nearly conjured a vibrant green energy industry that barely existed five years ago.
Pete Danko: More Wind Power Equals Lower Electricity Prices
The price of electricity has dropped in states that have developed extensive wind power over the past five years. It’s just a slight drop, but here’s the kicker: the other states have seen a hefty rise. The AWEA pointed to 11 states that had produce more than 7 percent of their electricity from wind power – Texas, Wyoming, Oregon, Oklahoma, Idaho, Colorado, Kansas, Minnesota, North Dakota, South Dakota and Iowa. In those states, the price of electricity fell 0.37 percent in the past five years. Meanwhile, in the rest of the states, electricity went up by 7.79 percent.
Igor Volsky: Republicans Slam Stimulus On Fifth Anniversary – But Most Took Credit For It Back Home
Monday marks the five-year anniversary of the passage of the American Recovery Act, President Obama’s $800 billion stimulus stimulus package that invested in everything from infrastructure projects to electronic medical health care records and alternative energy sources. Every single Republican in the House and almost every Republican in the Senate — with the exception of Former Sens. Olympia Snowe (R-ME), Arlen Specter (R-PA), and Sen. Susan Collins (R-ME) — voted against the measure and today the GOP continues to deride the law as wasteful an ineffective.
But as ThinkProgress reported throughout 2009, over half of the GOP caucus praised the effects of the stimulus or took credit for the federal dollars in their home districts and states — despite repeatedly voting against it in Washington D.C. The Wall Street Journal reported “Ryan, a Wisconsin Republican who called the stimulus a ‘wasteful spending spree’ that ‘misses the mark on all counts,’ wrote to Labor Secretary Hilda Solis in October in support of a grant application from a group in his district which, he said, ‘intends to place 1,000 workers in green jobs.’” Ryan also wrote letters to the Secretary of Energy requesting stimulus funds for a local energy company in 2009. Ryan repeatedly voted against the stimulus.
It seems like ages ago, but in late 2008 and early 2009, the global economic crisis had reached terrifying levels, and U.S. policymakers had to choose a direction for the nation’s future. Democrats rallied behind a stimulus package called the Recovery Act, while Republicans called for a five-year federal spending freeze. First, if the nation had followed the GOP’s preferred course at the height of the crisis – David Brooks described the Republican prescription at the time as “insane” – the Great Recession would have been far worse, making their complaints now rather laughable. Second, if GOP lawmakers are convinced the stimulus failed, why’d they take credit for its investments back home? And third, public relations notwithstanding, the Recovery Act was a great success.
Five years ago Monday, President Barack Obama visited the Denver Museum of Nature and Science to sign the American Recovery and Reinvestment Act, his $800 billion stimulus bill. At the time, the U.S. economy was losing 800,000 jobs a month. In the fourth quarter of 2008, it had contracted at an 8% annual rate, a Depression-level free fall. “Today does not mark the end of our economic problems,” Obama said on Feb. 17, 2009. “But it does mark the beginning of the end.” And so it did. the Recovery Act increased U.S. GDP by roughly 2 to 2.5 percentage points from late 2009 through mid-2011, keeping us out of a double-dip recession. It added about 6 million “job years” (a full-time job for a full year) through the end of 2012. If you combine the Recovery Act with a series of follow-up measures, including unemployment-insurance extensions, small-business tax cuts and payroll tax cuts, the Administration’s fiscal stimulus produced a 2% to 3% increase in GDP in every quarter from late 2009 through 2012, and 9 million extra job years, according to the report.
The report also estimates that the Recovery Act’s aid to victims of the Great Recession — in the form of expanded food stamps, earned-income tax credits, unemployment benefits and much more — directly prevented 5.3 million people from slipping below the poverty line. It also improved nearly 42,000 miles of roads, repaired over 2,700 bridges, funded 12,220 transit vehicles, improved more than 3,000 water projects and provided tax cuts to 160 million American workers. The Recovery Act jump-started clean energy in America, financing unprecedented investments in wind, solar, geothermal and other renewable sources of electricity. It advanced biofuels, electric vehicles and energy efficiency in every imaginable form. It helped fund the factories to build all that green stuff in the U.S., and research into the green technologies of tomorrow. It’s the reason U.S. wind production has increased 145% since 2008 and solar installations have increased more than 1,200%. The stimulus is also the reason the use of electronic medical records has more than doubled in doctors’ offices and almost quintupled in hospitals. It improved more than 110,000 miles of broadband infrastructure. It launched Race to the Top, the most ambitious national education reform in decades.
David Danelski: MOJAVE DESERT: High-Profile Solar Plant Dedicated With Fanfare
Amid the glow of 173,000 mirrors capturing the sun’s power, more than 100 government officials and energy executives Thursday celebrated the opening of the Ivanpah solar plant in northeast San Bernardino County and declared their intention to build more of them to combat global warming. “We will continue to work across the board to advance these projects. So bring them on,” U.S. Energy Secretary Ernest Moniz said in his keynote. His address, given in a large tent next to the mirror fields, came during a luncheon that offered squash ravioli and a salad of baby greens. Moniz said Ivanpah is the world’s largest thermal solar project and part of a strategy to expand carbon-free sources of energy.
President Barack Obama: Making America the leader in clean energy, with the world's largest solar plant. pe.com/local-news/top…
The Obama administration is looking to provide as much as $40 billion in additional loan guarantees for energy projects, Moniz said. The plant is expected to provide enough electricity for as many as 140,000 homes through contracts with Southern California Edison and Pacific Gas and Electric. It has been hailed by President Barack Obama, who said in his State of the Union address that America is a global leader in solar development. The government has backed such projects with investment tax credits that run through 2016, though it is not clear how much the Ivanpah investors have benefited. The tax breaks were part of Obama’s first-term economic stimulus package. Ivanpah is one of the first commercial-scale solar developments initiated during Obama’s recession-fighting stimulus effort. It is the first large-scale plant to use power-tower technology — at Ivanpah, the mirrors focus solar energy onto boilers mounted on three, 460-foot towers. Heat in the boilers creates steam, which powers turbines that generate electricity.
First Lady Michelle Obama talks with children attending Camp Noah as they make trail mix at the McAlpine Park Recreation Center in Birmingham, Ala., July 18, 2012 (Photo by Chuck Kennedy)
Presidential Daily Schedule (All Times Eastern)
11:25: The President delivers a statement on the Affordable Care Act
12:25: First Lady Michelle Obama, Rahm Emanuel and Amy Rule visit Urban Alliance Chicago
3:0: The President participates in an Ambassador Credentialing Ceremony (closed press)
Steve Benen: Jobless claims show sharp improvement, reach three-month low
Last week’s report on initial unemployment claims was unexpectedly discouraging, making the good news this morning that more reassuring.
The number of people who applied for regular state unemployment-insurance benefits dropped 24,000 to 334,000 in the week that ended July 13, hitting the lowest level of new claims since early May, signaling a slower pace of layoffs, the U.S. Department of Labor reported Thursday. Economists polled by MarketWatch had expected initial claims to fall to 341,000 from an original estimate of 360,000 in the prior week. However, it’s difficult to precisely measure claims this month because of distortions from events such as annual auto plant shutdowns and the July 4 holiday, they said…. The four-week average of initial claims, a less volatile gauge, declined 5,250 to 346,000.
Philip Bump: Those of you who are old enough may remember a time when Barack Obama was plagued with scandal. “Scandal politics sweep Capitol Hill,” Politico yelped. The suffix “-gate” was added to various words. So what happened to the scandals? For the most part, they’ve been hollowed out. The scandal: Benghazi. What it was: The death of four Americans at a diplomatic (read: CIA) outpost in the Libyan city of Benghazi last September 11th bubbled for a while. The release of emails suggesting a cover-up kicked conspiracy theories into high gear.
How real it was in the first place: Not very. Current status: Last rites administered Those emails reported by ABC News were only part of the story. The White House released the full email chain, making it clear that the administration’s involvement in drafting a set of post-attack talking points wasn’t what opponents suggested. (We even declared the scandal dead the same week.)
President Barack Obama meets with senior advisors in the Oval Office before a phone call with President Vladimir Putin of Russia, July 18, 2012. Pictured, from left, are: Chris Mizelle, Director for Russia and Central Asia, NSS; National Security Advisor Tom Donilon; Chief of Staff Jack Lew; and Denis McDonough, Deputy National Security Advisor. (Official White House Photo by Pete Souza)
News from New York: it looks as if insurance premiums on the individual market are going to plunge thanks to Obamacare. This shouldn’t come as a surprise; in fact, the New York experience perfectly illustrates why Obamacare had to look the way it does. And it also illustrates why conservatives should be terrified about this legislation, as it takes effect. Americans may have had a lot of misgivings in advance, thanks to vast, deliberately spread misinformation. But I agree with Matt Yglesias — unless the GOP finds even more ways to sabotage the plan, this thing is going to work, it’s going to be extremely popular, and it’s going to wreak havoc with conservative ideology.
Conservatives are right to be hysterical about this: it’s an attack on everything they believe — and it’s going to make Americans’ lives better. What could be worse?
Abby Ohlheiser: House Republicans followed up on the Obama administration’s decision to delay the implementation of the employer mandate for one year by voting to make that decision a law, and to extend that delay to all individuals, too. It’s a more limited protest vote than what we’re used to seeing from the House GOP on Obamacare: There have been 38 legislative attempts to revoke either all or part of the health care reform law since 2011.
On Wednesday, both votes to delay passed easily: 264 – 161 for the employer mandate, and 251 – 174 for the individual mandate. They will not become law: President Obama would veto both bills if they made it to his desk.