Obama: Let’s spend $2 billion to create 5100 jobs

posted at 11:00 am on July 3, 2010 by Ed Morrissey

And I thought Barack Obama’s response to the jobs numbers yesterday was clueless.  Obama proposed spending $800 million to create 5,000 jobs, which would install broadband technology where it hasn’t already expanded because of demand, which will cost $160,000 per job.  Today, Obama has refined his approach in his weekly address, proposing to spend even more money to create jobs that will mainly disappear:

That’s one of the reasons why we’re accelerating the transition to a clean energy economy and doubling our use of renewable energy sources like wind and solar power – steps that have the potential to create whole new industries and hundreds of thousands of new jobs in America.

In fact, today, I’m announcing that the Department of Energy is awarding nearly $2 billion in conditional commitments to two solar companies.

The first is Abengoa Solar, a company that has agreed to build one of the largest solar plants in the world right here in the United States. After years of watching companies build things and create jobs overseas, it’s good news that we’ve attracted a company to our shores to build a plant and create jobs right here in America.  In the short term, construction will create approximately 1,600 jobs in Arizona. What’s more, over 70 percent of the components and products used in construction will be manufactured in the USA, boosting jobs and communities in states up and down the supply chain. Once completed, this plant will be the first large-scale solar plant in the U.S. to actually store the energy it generates for later use – even at night.  And it will generate enough clean, renewable energy to power 70,000 homes.

The second company is Abound Solar Manufacturing, which will manufacture advanced solar panels at two new plants, creating more than 2,000 construction jobs and 1,500 permanent jobs.  A Colorado plant is already underway, and an Indiana plant will be built in what’s now an empty Chrysler factory.  When fully operational, these plants will produce millions of state-of-the-art solar panels each year.

If this is an example of how Obama will sell the green-jobs economy, he’d better hope that the public schools get a lot worse than they already are at teaching math.  Obama proposes spending $2 billion to create a total of 5,100 jobs.  That will cost $392,156.87 per job.  That kind of money, in the private sector at least, should fund several jobs.  Heck, even a government bureaucrat costs less than that; even at the Department of Transportation, that would cover two and have enough left over for a secretary.

But that’s not the only folly in this proposal.  Of the 5,100 jobs Obama promises, only 1,500 of them are permanent jobs.  The others are construction jobs, which will only last as long as the money flows to the project.  That means we will spend over $1.3 million per “permanent” job in building this “green economy,” which looks more like a red-ink economy with even a cursory check of the numbers.

And let’s say that these 1500 jobs are all great-paying, tax-generating jobs that earn an average of $100,000 per year, and that these folks all pay an effective tax rate of 25%, which is an incredibly generous calculation.  How long will it take to pay back that investment from the permanent jobs created by this effort?  Why, only 53 years and 4 months! And that’s only if one doesn’t calculate the cost of money over that period of time and ignore the impact of inflation.

We know that the motto of this administration is “never let a good crisis go to waste,” but it turns out that the real crisis is mathematical illiteracy — and Obama hopes it afflicts enough people to get away with this.


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Hey, I got an idea; lets offer 0bama $2 Billion, cash, to resign and move back to Indonesia or Kenya …

or maybe he can go hang out with his pal Hugo in Venezuela.

He77, It would be worth it in the long run to pay him $2 trillion to leave forever, if he would undo everything he has done so far, before departing.

LegendHasIt on July 3, 2010 at 1:37 PM

This reminds me of the big thick sheets of steel they produced in the early days of the Soviet Union. They couldn’t do anything with them, nothing could be made of them, they were a massive waste of money…but by gosh they were making steel! Yay!

lizzie beth on July 3, 2010 at 1:58 PM

Where do I send my check?

texriot on July 3, 2010 at 2:02 PM

You can probably pay hobos to treadmill generate more power than that for way less money.

abobo on July 3, 2010 at 2:03 PM

Also, it’s times like this that I really do think he’s just some guy reading words off a teleprompter. If he were 1/2 as intelligent as we’re told he would see that this stuff makes no sense.

lizzie beth on July 3, 2010 at 2:27 PM

Globama – the website.

tru2tx on July 3, 2010 at 2:32 PM

I have a better idea.

Let’s give Obama his pink slip, and $5100 in Monopoly money, because that’s about all he’s worth, and send him on his way.

capejasmine on July 3, 2010 at 3:02 PM

I have a simple question.
If government can create jobs by spending money, why do they think businesses can’t do the same? Doesn’t bussinss need money to create jobs? If they had extra capital to invest in expansions and so forth, wouldn’t that also be used for job creation?

If the government would allow business to keep more of it’s profits, they would have more capital to invest back into expanding their business, thus creating jobs.

So, if Obama says he needs money to create jobs, I’d like to know why he thinks business can create jobs without profits.

JellyToast on July 3, 2010 at 3:08 PM

Hey there DOTUS……how about creating some jobs by giving GUN MAKERS tax credits to set up shop in CHICAGO?

And hey, while we’re at it……YOU LIKE TO QUOTE JEFFERSON. Here’s one for you from that WHITE SOUTHERN SLAVE OWNING RACIST…..

“Laws that forbid the carrying of arms . . . disarm only those who are neither inclined nor determined to commit crimes . . . Such laws make things worse for the assaulted and better for the assailants; they serve rather to encourage than to prevent homicides, for an unarmed man may be attacked with greater confidence than an armed man.”
–Thomas Jefferson, 1764

PappyD61 on July 3, 2010 at 3:18 PM

Eureka! I have found the Holy Grail of energy. Let’s bottle all the hot air coming out of Obama’s mouth and if he doesn’t have bad breath it could be sold as clean energy!

Herb on July 3, 2010 at 3:22 PM

Twice, in the past several months I’ve driven from Mesquite, NV to Las Vegas on Interstate 15 at night. Both times I recall seeing the advertising billboards on the right side of the road, which were being powered by single solar panels. These billboards are for tourists: Hotels, casinos, buffets, shows, etc. It was pitch-black outside and not one single billboard was lit up. You could faintly make out the structure of them in the dark. Conversely, the very, very few that were still using electricity were lit up as bright as can be.

betsyz on July 3, 2010 at 3:23 PM

This reminds me of the trips I’ve taken from Mesquite, NV to Las Vegas, on Interstate 15. Two times I’ve driven at night. On the right side of the road are billboards. Most of them now have single solar panels for power. These billboards are for tourists: Advertising for hotels, casinos, shows, buffets, etc. Both times, 3 months in-between, all of the billboards were dark. You could faintly make out their structures. Conversely, the very, very few billboards still using electricity were lit up and as bright as can be.

betsyz on July 3, 2010 at 3:29 PM

I hope somebody’s reading the fine print. If this is some leftover Van Jones bullfeathers, there will be more to be angry about than just the insane cost.

The devil is always in the details. Mark my words; there’s more to this than meets the eye, as if that in itself isn’t bad enough.

There will surface before all is said and done some incestuous relationship between these companies and someone in the Ojesus Loop. I would bet serious money on it. I would also wager that there are various “benchmarks” or something to that effect that must be met in the hiring process for these incredibly expensive jobs.

hillbillyjim on July 3, 2010 at 3:36 PM

You know…

… It’s like he has never run a business before in his life.

Oh, wait!

Seven Percent Solution on July 3, 2010 at 3:43 PM

but it turns out that the real crisis is mathematical illiteracy — and Obama hopes it afflicts enough people to get away with this.

…and economic illiteracy…or a complete fooling of the masses, with the full aid of the media.

May they all suffer the consequences.

Schadenfreude on July 3, 2010 at 4:10 PM

http://www.msnbc.msn.com/id/38072919/ns/business-the_new_york_times

Illinois heading for financial ruin. Good job Obama./

CWforFreedom on July 3, 2010 at 4:34 PM

obamarx, in eighteen short months, has stolen Trillions.

Who here can say that anyone knows where the $860 Billion “stimulus” has gone?

How about where the TARP Trillion has gone?

And let’s not forget our Billions that were used to purchase Chrysler and GM for obama and his unions.

Does anyone realize that theft on this scale really is historical and unprecendented?

So, he wants another $2 Billion. For phony jobs that will never be created; this chump change is walking around money and will never be accounted for, as with the trillions mentioned above.

And does anyone else here have the details on the recently revealed story that Van Jones received $60 Billion of our tax dollars for “green jobs” before he left the Administration? Where is that money now?

And what about the Frank/Dodd punks who have legislated that we will foot the bill, without limit, for Fannie and Freddie, while the “executives”, like obama pal Jim Raines, cook the books and instead of going to prison, walk off with scores of millions in personal salary and bonus?

Of course, all of this will pale when the theft of trillions of tax dollars earmarked for your and my “healthcare” just won’t be available. No worries, the death panels will have that little detail covered. You won’t be alive to squawk about your suffering, let alone the Crime of Century.

Has the word yet been invented to describe the magnitude of the crime with which to charge obama for his Grand and Generational Theft of the United States Treasury?

Yes, he has brilliantly redistributed trillions into his own and his fellow criminal’s pockets. He is a criminal puppet extraordinaire.

Not to mention the sabotage of the Gulf. That destruction can’t even be tallied. And the tyrant got to put $20 Billion from BP into his own pocket – with no legal means of ever knowing where the money will go. And instead of impeachment, will the American people allow him to skim another trillion of our tax dollars through cap and trade?

And the fact that he’s getting a pass from the GOP elected “representatives” who are sworn to protect and defend the Constitution, and from media RINOS like Krauthammer, O’Reilly, et al., who actually daily discuss his “policies” as if they, or he, are somehow worthy of their endless political discussion, instead of sounding the red alert and shouting that the Ship of State has been torpedoed and is sinking, and the man who is responsible for all of this theft and mayhem is comfortable enough with our impotence, or his plans to steal the vote/cancel elections, that he smugly and outrageously continues to relentlessly burn this nation to the ground is something beyond disgusting.

So many “conservatives” are afraid of the “extremist” label, and won’t sound the alarm because they are actually afraid of being called names by leftists. They must pretend that this presidency is just like all the others in our history and it suits obama that we “little people” continue to discuss and analyze, ad nauseum.

Those “conservatives” who have a media pulpit, either on blogs, cable or radio, who are afraid of really telling it like it is, but are still proud of showing off how clever they are in having “figured out” obama need to step it up.
With what is listed above just a tip of the iceberg of destruction that is obama, they remain afraid of being labeled birthers. They are as easily defeated and shut-up by the Left with this lame label as if they were infants in arms.

If they really had obama figured out, as so many of us already do, they would be calling for impeachment and a frog march to a life sentence in Leavenworth.

tigerlily on July 3, 2010 at 5:01 PM

This green-weenie horsesh*t is just as wastefully expensive as our subsidizing crops for ethanol production.

onlineanalyst on July 3, 2010 at 5:05 PM

Right on, tigerlily!

I think that you mean Franklin Raines, not Jim Raines, though. Rahm Emmanuel and Jamie Gorelick were big-bucks winners in the Fannie-Freddie game. How did they merit extortionary bonuses for two entities that have been bleeding money for years?

I would line to see a deep investigation of the Chicago Climate Exchange, too. Who are the players and who are the beneficiary investors?

onlineanalyst on July 3, 2010 at 5:25 PM

Right on, tigerlily!

I think that you mean Franklin Raines, not Jim Raines, though. Rahm Emmanuel and Jamie Gorelick were big-bucks winners in the Fannie-Freddie game. How did they merit extortionary bonuses for two entities that have been bleeding money for years?

I would line to see a deep investigation of the Chicago Climate Exchange, too. Who are the players and who are the beneficiary investors?

onlineanalyst on July 3, 2010 at 5:25 PM

Thanks for the edit, online. You’ll know I’m gone when I write Claude Raines.

Yes, the Chicago Climate Exchange is an incredible rip-off, according to Glenn Beck it’s poised to make Gore and gang Trillions of dollars, literally out of thin air. All they need is cap and tax and some international treaty work here and there.

The depth and complexity of the schemes in all of this larceny and destruction is like a global spider web of steel being wrapped around the planet at record speed. This global cabal, who pull obamarx’s strings, are orchestrated in their evil and they move as one, like a school of barracudas. They are diabolical in their nature and goal.

tigerlily on July 3, 2010 at 5:43 PM

Also, it’s times like this that I really do think he’s just some guy reading words off a teleprompter. If he were 1/2 as intelligent as we’re told he would see that this stuff makes no sense.

lizzie beth on July 3, 2010 at 2:27 PM

His puppetmasters know it makes plenty of sense, if by sense, you mean stealing 3 trillion dollars from the People in less than 18 months. By that standard, which is the standard you should be applying, (the “how much money can we steal while destroying the nation” standard) obamarx’s handers are diabolically brilliant and obamarx has executed their Blackberry orders brilliantly.

What doesn’t make sense is how We the People haven’t put obamarx and his cohorts into orange jumpsuits for life.

Maybe we’re not 1/2 as intelligent as we’ve been told.

tigerlily on July 3, 2010 at 6:02 PM

2 billion is just the down payment.

I’m sure Big Guv will be buying up those solar panels, using the taxpayers checkbook.

Either that or Big Guv will be forcing companies to buy them. Maybe GE will buy up a few billion dollars worth, and show how effin’ green they are (on paper) while they scam millions in a future cap and trade fiasco…

I swear, if those clowns in the GOP don’t fight this insane moron with everything they have after Jan 2011, they are done forever.

reaganaut on July 3, 2010 at 6:07 PM

The government is not an efficient user of resources.

This entire deal should not exist!

Simply streamlining the permit process, allowing for various local tax breaks, and perhaps a break on a loan, would have seriously kick started ANY economically viable project.

This project will cost too much to build, and it will lose money EVERY year it is in operation. Just like the AMTRACK program, this baby is destined for PERMANENT government handouts!

Freddy on July 3, 2010 at 6:19 PM

I once had a solar system to heat water. It never saved any real money, but hey it was free, the government paid for it, and it did keep my spa warm, no not hot. It simply was not good enough to heat hot water, just warm enough though.

Ah but what a spa it was …

tarpon on July 3, 2010 at 6:45 PM

Dig a little deeper HotAir.

I’ll give you a hint:

Al Gore is heavily invested in Abengoa Energy. Abengoa Energy in turn is tied at the hip with BP in both biofuel investments and, Abengoa subsidiary Befesa, handles much of the water treatment for BP refineries.

selias on July 3, 2010 at 7:47 PM

Where’s the business plan?

Obama would be better suited pitching bigmacs on tv

Sonosam on July 3, 2010 at 9:49 PM

The Abound Solar web site currently lists 2 positions available. I guess they pay $1billion apiece.

JerseyJeff on July 3, 2010 at 9:50 PM

What you ascribe to ignorance I assign to malice and corruption.

Aquateen Hungerforce on July 3, 2010 at 9:55 PM

Obama: Let’s spend $2 billion to create 5100 jobs (for my friends! shout out to me rich homies!)

ray on July 3, 2010 at 11:39 PM

What you ascribe to ignorance I assign to malice and corruption.

Aquateen Hungerforce on July 3, 2010 at 9:55 PM

There’s a saying in here somewhere, about ascribing to malice that which can be easily explained by (and this is my editorial spin) retardation.

But actually I think you’re right. Even retardation can’t explain why Obama thinks it makes sense to spend $2 billion to create 5,100 temporary jobs, working for a Spanish company. Only malice can explain it.

He’s not just retarded; he’s evil.

Jaibones on July 3, 2010 at 11:41 PM

Hey, just send these 5000 people a check and they won’t need jobs. Then they can go out and spend the money and stimulate the economy.
Let me see, 2 billion divided by 5000 comes to about 400,000 each. That’s if I used the right number of zeros. My eyesight isn’t as good as it used to be.

JellyToast on July 4, 2010 at 8:25 AM

I want to think of something clever to say. But I am stunned into near apoplexy by the soaring incompetence of BHO and his merry men. He brings new meaning to the word, idiot.

Rudemeister on July 4, 2010 at 8:32 AM

This “administration” is going to go down in history as the most corrupt, inefficient, and clueless group to ever occupy the White House…

Khun Joe on July 4, 2010 at 8:52 AM

This “administration” is going to go down in history as the most corrupt, inefficient, and clueless group to ever occupy the White House…

Khun Joe on July 4, 2010 at 8:52 AM

By their own standards, they have succeeded.

Inanemergencydial on July 4, 2010 at 12:30 PM

At the risk of defending Obama, I’ll say that the $2Bil is not being spent, at least in the near term. I am quite familiar with the Abengoa Project (Solana) as it is in Gila Bend, AZ, where I have a pending housing project, which can potentially benefit from Solana.
The $1.45Bil for Solana is a Dept of Energy (DOE) loan guaranty. As the entire output, to power 70,000 homes, has been pre-purchased by AZ Public Service, the risk to us, the tax payers, is the development of the plant itself, not insignificant, to be sure, but not likely anywhere near the loan guarantee amount. Solana invested millions for land acquisition, engineering,the entitlement process and organizational setup, most of it before the financial meltdown dried up funding resources.
The balance of government commitment is for factories and jobs to produce solar panels and/or other components, for which there may or may not be available markets (buyers.) BIG difference.

johncorn on July 4, 2010 at 2:34 PM

It is necessary for one to work for money at one time or another in order to understand it’s value.
When you see your labor, your sweat turn in to cash and that cash in to food it makes an impression on you. One our President has never experienced.
So removed from reality has he been even in his youth that he was surprised to find that his liability insurance on his car was not full coverage when he wrecked.
He and Paris Hilton have a great deal in common. Our President lives in a fantasy land far removed from the troubles you and I face on a daily basis. He has no more in common with us than Paris does.
Mao is mentioned so much by those he appoints…whom does he seek to emulate? It seems obvious to me. He is reflected in those he appoints. Bloom who agrees with Mao that political power flows from the barrel of a gun. Dunn who names Mao as one of her favorite “philosophers”. Jones self proclaimed Communist. Jarret who calls the US and “Imperialist nation”. So many more Communists that they would fill the page.
Birds of a feather is not a well known saying because it is a lie.

If the public wants solar panels they will buy them. They’ll buy them when they’re affordable. They’ll be affordable when the technology has sufficiently advanced to make them so.
Did Ford get a stimulus when he began making cars? No. Did Edison have government help? No. That list is endless. The list of businesses that have taken our money is not.

Army Brat on July 4, 2010 at 5:42 PM

Owned by Spanish engineering company Abengoa, the company opened a pilot plant in York, Neb., in October 2007, which cost some $35 million to build. Abengoa plans to spend $300 million to build a cellulosic ethanol production plant in Hugoton, Kan., which will produce 49 million gallons of cellulosic ethanol per year. The company also got a $76 million grant from the DOE to help fund a project in Colwich, Kansas, that the DOE said will produce 11.4 million gallons per year (we’re checking to see the latest updates on the DOE project).

Abengoa is a problem. They have sucjed the gubment teats for ethanol and now solar. They are very expensive. Spain is flat broke and now the spanish are sent over here to rip us off. Obama intentionally makes bad investments.
Stop stealing from America!!!

Half the ethanol plants are bankrupt. Now they want solar all of which will go broke because they need subsidies.

seven on July 4, 2010 at 8:05 PM

Abengoa is trying to rip us off. They are good at it. They take hundreds of millions in gubment funds and shut down in ethanol. Now they can scam Obama because he doesn’t know how they work.
Abengoa is a strong spender of other people money. None of the stuff they do is self supporting. None. Parasite.

The thugs is washington are not honest enough to publish what the cost per killowatt hour is on solar. Try to ask them. The secret is we can’t afford to know.

Abengoa makes Bear Sterns look good.

seven on July 4, 2010 at 8:35 PM

Customers also have the option of purchasing solar energy equivalent to half or all of their monthly electricity needs for 16.6¢/kWh.

There is a lot of coal gebnerated electric on the market for 4.6 cents.

johncorn on July 4, 2010 at 2:34 PM

We know honest builders tell home buyers what the cost of energy will be.
Looks like Obama is taking out revenge on Arizona.
Keep the socialists from our power supply!!!

seven on July 4, 2010 at 8:50 PM

I’m announcing that the Department of Energy is awarding nearly $2 billion in conditional commitments to two solar companies.

Translation: Can’t have the Democrats voting on another failed Stimulus so close to the midterms, so I’ll just give $2 BILLION to TWO companies so they may hire people. All next week, I will be on tv telling you how great I am to small business and how forward-thinking I am. Oh, and if you are looking for a business plan or want actual specifics on resale/demand of solar products, well, um, you know, it’s Bush’s fault….

TN Mom on July 4, 2010 at 11:14 PM

I’m not the most numerate person in the world, but even I can look at $2 billion for 5,100 jobs and see that it’s a political shell game. Obama is buying off the environmental lobby, simple as that.

RebeccaH on July 5, 2010 at 12:28 PM

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