Obama says he will not give tax breaks to American businesses that set up plants in foreign nation. But that does not mean that he will not give money up front to do this. In fact, he already has.
The $787 billion Keynesian stimulus of 2009 had lots of money for businesses that used the money to pay to outsource jobs.
For example, there is the North Carolina LED manufacturer Cree Inc. Cree was awarded $39 million through a stimulus-funded tax credit program in January 2010. However, half of the company’s employees are in China and the company opened a manufacturing plant in Huizhou City, China in November 2009, according to an article in the industry publication LEDs Magazine.
According to the same article, Cree CEO Chuck Swodoba said he did not consider Cree Inc. to be run like a completely American company.
“Cree management never runs this company as a US company. We consider Cree to be a global company with local wisdoms,” Swodoba said.
Swodoba also said he would continue expanding into China, adding that Cree would keep creating jobs there because it could take advantage of both China’s human resources and its “state-of-the-art technology.”
Mr. Swooboda is nothing if not forthright, unlike Mr. Obama. He tells it like it is. His job is to make money. That means taking a subsidy from the government in order to give jobs to Asians. “We will continue to invest here [China] for both human talent and the most state-of-the-art technologies.”
He is not alone.
Another example of stimulus outsourcing is Japanese wind energy firm Eurus Energy, whose U.S. subsidiary, Eurus Energy America, received $91 million in stimulus funds to build a wind farm in Texas, according to a 2010 report from American University. That wind farm reportedly was built with wind turbines manufactured by another Japanese company – Mitsubishi.
“Eurus Energy America, the U.S. subsidiary of a Japanese firm, received $91 million in stimulus money for its Bull Creek wind farm in Texas. The farm consists of 180 Mitsubishi turbines,” the American University report said.
Eurus told American University that the wind farm was actually built by British firm RES Americas and is now being run by EnXco, an American subsidiary of the French energy firm EDF Energies Nouvelles.
Then there is green energy. Who could possibly oppose green energy? So, it gets lots of green from the Obama Administration.
Another example of the Obama administration funding foreign companies is a $337 million loan guarantee from the Department of Energy’s green energy lending program.
That loan went to California energy firm Sempra Energy for a solar power array in Arizona. However, according to a Feb. 4, 2011 New York Times report, Sempra Energy bought its solar panels from the Chinese firm Suntech.
The project, known as Mesquite Solar 1, reportedly used 800,000 of the Chinese solar panels.
Compared to $787 billion, this is chump change. But with a boondoggle as large as $787 billion, there will be lots of examples of money going where the President says he does not want it to go.
The solution is to vote against the boondoggles, not keep the money “at home.”