Question: Why Is It that You Pitch A Bitch When So Called Government Has Taxes, But.

Re: Question: Why Is It that You Pitch A Bitch When So Called Government Has Taxes, B

Maybe, just maybe, some believe the govt isn't that great at operating with efficiency, idk

Green Company Gets $390M Subsidies, Lays Off 125

A123 Systems, an electric car battery company once touted as a stimulus "success story" by former Gov. Jennifer Granhom, D-Mich., has laid off 125 employees since receiving $390 million in government subsidies -- but is still handing out big pay raises to company executives.

"[T]he company has laid off 125 employees and had a net loss of $172 million through the first three quarters of 2011," the Mackinac Center for Public Policy reports, observing that the company's primary customer, Fisker Automotive, is also struggling financially. "Yet, this month A123’s Compensation Committee approved a $30,000 raise for [Chief Financial Officer David] Prystash just days after Fisker Automotive announced the U.S. Energy Department had cut off what was left of its $528.7 million loan it had previously received."

This month has seen significant pay boosts for other A123 executives, as well:

Robert Johnson, vice president of the energy solutions group, got a 20.7 percent pay increase going from $331,250 to $400,000, while Jason Forcier, vice president of the automotive solutions group, saw his pay increase from $331,250 to $350,000. Prystash’s raise was 8.5 percent, going from $350,000 to $380,000.

"It looks like they are trying to pad their top people’s wallets in case something really bad happens," Paul Chesser, associate fellow for the National Legal & Policy Center, suggested.

The Department of Energy gave the battery company $249.1 million in grant money, while the Michigan government provided A123 with another $141 million in tax credits and subsidies, according to the Mackinac Center.

Could this $$$ have been better allocated?
 
Re: Question: Why Is It that You Pitch A Bitch When So Called Government Has Taxes, B

Maybe, just maybe, some believe the govt isn't that great at operating with efficiency, idk

Green Company Gets $390M Subsidies, Lays Off 125



Could this $$$ have been better allocated?

The government is handing the private sector money only...this is just a grant, not the government running the business. Yet the government gets blamed if a private sector fails afterwards.

There is a simple solution to the energy crisis. Live next to your job, if you can or take public transportation.
 
Re: Question: Why Is It that You Pitch A Bitch When So Called Government Has Taxes, B

The government is handing the private sector money only...this is just a grant, not the government running the business. Yet the government gets blamed if a private sector fails afterwards.

The issue is govt "confiscated" the money from a productive citizen(s) and allocated it in an unproductive / inefficient manner. Hell, I'd be more understanding if they picked out 1 million homeless and gave them $392 each. Instead, in the example I provided, Chief Officers of this organization treated themselves to exorbitant bonuses & raises; then laid 125 people off! Thats not capitalism! Crony-capitalism yes, free market capitalism NO!

There is a simple solution to the energy crisis. Live next to your job, if you can or take public transportation.

no problem with that! But we can't continue to confiscate wealth from the productive class and squandering it on failed business practices.
 
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Re: Question: Why Is It that You Pitch A Bitch When So Called Government Has Taxes, B

But we can't continue to confiscate wealth from the productive class and squandering it on failed business practices.

I could agree with this statement, but there are two undefined terms.

Could you define "Productive Class" ? ? ?

And, could you define "Failed Business Practices." ? ? ?
 
Re: Question: Why Is It that You Pitch A Bitch When So Called Government Has Taxes, B

I could agree with this statement, but there are two undefined terms.

Could you define "Productive Class" ? ? ?

And, could you define "Failed Business Practices." ? ? ?

Could you define "Productive Class" ? ? ?

The class that is paying Lamarr to post.
 
Re: Question: Why Is It that You Pitch A Bitch When So Called Government Has Taxes, B

30 Stupid Things The Government Is Spending Money On

The American Dream Friday, March 2, 2012

If you want to get paid for doing something stupid, just turn to the U.S. government. The U.S. government is paying researchers to play video games, it is paying researchers to study the effects of cocaine on Japanese quail and it has spent millions of dollars to train Chinese prostitutes to drink responsibly.

The amount of money that the government wastes is absolutely horrifying. Do you remember all of that political wrangling over the debt ceiling deal last year? Do you remember how our politicians told us that there were cutting spending as much as they possibly could? Well, it was all a giant lie. As you will see below, the U.S. government is spending money on some of the most stupid things imaginable. What makes all of this even worse is that we are going into enormous amounts of debt in order to pay for all of this. We are borrowing billions of dollars a day in order to pay for stupid stuff that no government on earth should ever be paying for. Trust me, you are going to find it hard to believe some of the stuff in this list. It is almost inconceivable what our politicians are doing with our tax dollars.

The following are 30 incredibly stupid things that the federal government is spending money on….

#1 The U.S. government is spending $750,000 on a new soccer field for detainees held at Guantanamo Bay.

#2 The Obama administration plans to spend between 16 and 20 million dollars helping students from Indonesia get master’s degrees.

#3 If you can believe it, the U.S. government has spent $175,587 “to determine if cocaine makes Japanese quail engage in sexually risky behavior”.

#4 The U.S. government spent $200,000 on “a tattoo removal program” in Mission Hills, California.

#5 The federal government has shelled out $3 million to researchers at the University of California at Irvine to fund their research on video games such as World of Warcraft. Wouldn’t we all love to have a “research job” like that?

#6 The Department of Health and Human Services plans to spend $500 million on a program that will, among other things, seek to solve the problem of 5-year-old children that “can’t sit still” in a kindergarten classroom.

#7 Fannie Mae is about to ask the federal government for another $4.6 billion bailout, and it will almost certainly get it.

#8 The federal government once spent 30 million dollars on a program that was designed to help Pakistani farmers produce more mangos.

#9 The U.S. Department of Agriculture once gave researchers at the University of New Hampshire $700,000 to study methane gas emissions from dairy cows.

#10 According to USA Today, 13 different government agencies “fund 209 different science, technology, engineering and math (STEM) education programs —and 173 of those programs overlap with at least one other program.”

#11 A total of $615,000 was given to the University of California at Santa Cruz to digitize photos, T-shirts and concert tickets belonging to the Grateful Dead.

#12 China lends us more money than any other foreign nation, but that didn’t stop our government from spending 17.8 million dollars on social and environmental programs for China.

#13 The U.S. government once spent 2.6 million dollars to train Chinese prostitutes to drink responsibly.

#14 One professor at Stanford University was given $239,100 to study how Americans use the Internet to find love.

#15 The U.S. Postal Service spent $13,500 on a single dinner at Ruth’s Chris Steakhouse.

#16 The National Science Foundation once spent $216,000 to study whether or not politicians “gain or lose support by taking ambiguous positions”.

#17 A total of $1.8 million was spent on a “museum of neon signs” in Las Vegas, Nevada.

#18 The federal government spends 25 billion dollars a year maintaining federal buildings that are either unused or totally vacant.

#19 U.S. farmers are given a total of $2 billion each year for not farming their land.

#20 The U.S. government handed one Tennessee library $5,000 for the purpose of hosting a series of video game parties.

#21 A few years ago the government spent $123,050 on a Mother’s Day Shrine in Grafton, West Virginia. It turns out that Grafton only has a population of a little more than 5,000 people.

#22 One professor at Dartmouth University was given $137,530 to create a “recession-themed” video game entitled “Layoff”.

#23 According to the Heritage Foundation, the U.S. military spent “$998,798 shipping two 19-cent washers from South Carolina to Texas and $293,451 sending an 89-cent washer from South Carolina to Florida”.

#24 The U.S. Department of Agriculture once shelled out $30,000 to a group of farmers to develop a tourist-friendly database of farms that host guests for overnight “haycations”.

#25 The National Institutes of Health paid researchers $400,000 to find out why gay men in Argentina engage in risky sexual behavior when they are drunk.

#26 The National Institutes of Health also once spent $442,340 to study the behavior of male prostitutes in Vietnam.

#27 The National Institutes of Health loves to spend our tax money on really bizarre things. The NIH once spent $800,000in “stimulus funds” to study the impact of a “genital-washing program” on men in South Africa.

#28 According to the Washington Post, 1,271 different government organizations work on government programs related to counterterrorism and homeland security.

#29 The U.S. government spent $100,000 on a “Celebrity Chef Fruit Promotion Road Show in Indonesia”.

#30 The feds once gave Alaska Airlines $500,000 “to paint a Chinook salmon” on the side of a Boeing 737.

How in the world can our government be so foolish?

Anyone that claims that there is not a lot of stuff that can be cut out of the federal budget is lying to you.

All of this crazy spending is going to get us into a massive amount of trouble eventually. Already, on a per capita basis the U.S. national debt is worse than the national debts of Greece, Italy, Ireland, Portugal and Spain.

We have accumulated the biggest debt in the history of the world and we are adding to it at a rate of about 150 million dollars an hour.

Our politicians strut around as if they are the smartest and wisest leaders in the history of the world, but the truth is that someday people will look back in horror at the decline of our once great society.

The federal government needs to stop spending so much money on stupid things and needs to stop pushing our national debt to nightmarish new levels.

Unfortunately, the corruption in Washington D.C. is so deep and so pervasive that it is going to be almost impossible to turn it around.
 
Re: Question: Why Is It that You Pitch A Bitch When So Called Government Has Taxes, B

QUOTE=Lamarr;11203644]30 Stupid Things The Government Is Spending Money On

The American Dream Friday, March 2, 2012

If you want to get paid for doing something stupid, just turn to the U.S. government. The U.S. government is paying researchers to play video games, it is paying researchers to study the effects of cocaine on Japanese quail and it has spent millions of dollars to train Chinese prostitutes to drink responsibly.

The amount of money that the government wastes is absolutely horrifying. Do you remember all of that political wrangling over the debt ceiling deal last year? Do you remember how our politicians told us that there were cutting spending as much as they possibly could? Well, it was all a giant lie. As you will see below, the U.S. government is spending money on some of the most stupid things imaginable. What makes all of this even worse is that we are going into enormous amounts of debt in order to pay for all of this. We are borrowing billions of dollars a day in order to pay for stupid stuff that no government on earth should ever be paying for. Trust me, you are going to find it hard to believe some of the stuff in this list. It is almost inconceivable what our politicians are doing with our tax dollars.

The following are 30 incredibly stupid things that the federal government is spending money on….

#1 The U.S. government is spending $750,000 on a new soccer field for detainees held at Guantanamo Bay.

#2 The Obama administration plans to spend between 16 and 20 million dollars helping students from Indonesia get master’s degrees.

#3 If you can believe it, the U.S. government has spent $175,587 “to determine if cocaine makes Japanese quail engage in sexually risky behavior”.

#4 The U.S. government spent $200,000 on “a tattoo removal program” in Mission Hills, California.

#5 The federal government has shelled out $3 million to researchers at the University of California at Irvine to fund their research on video games such as World of Warcraft. Wouldn’t we all love to have a “research job” like that?

#6 The Department of Health and Human Services plans to spend $500 million on a program that will, among other things, seek to solve the problem of 5-year-old children that “can’t sit still” in a kindergarten classroom.

#7 Fannie Mae is about to ask the federal government for another $4.6 billion bailout, and it will almost certainly get it.

#8 The federal government once spent 30 million dollars on a program that was designed to help Pakistani farmers produce more mangos.

#9 The U.S. Department of Agriculture once gave researchers at the University of New Hampshire $700,000 to study methane gas emissions from dairy cows.

#10 According to USA Today, 13 different government agencies “fund 209 different science, technology, engineering and math (STEM) education programs —and 173 of those programs overlap with at least one other program.”

#11 A total of $615,000 was given to the University of California at Santa Cruz to digitize photos, T-shirts and concert tickets belonging to the Grateful Dead.

#12 China lends us more money than any other foreign nation, but that didn’t stop our government from spending 17.8 million dollars on social and environmental programs for China.

#13 The U.S. government once spent 2.6 million dollars to train Chinese prostitutes to drink responsibly.

#14 One professor at Stanford University was given $239,100 to study how Americans use the Internet to find love.

#15 The U.S. Postal Service spent $13,500 on a single dinner at Ruth’s Chris Steakhouse.

#16 The National Science Foundation once spent $216,000 to study whether or not politicians “gain or lose support by taking ambiguous positions”.

#17 A total of $1.8 million was spent on a “museum of neon signs” in Las Vegas, Nevada.

#18 The federal government spends 25 billion dollars a year maintaining federal buildings that are either unused or totally vacant.

#19 U.S. farmers are given a total of $2 billion each year for not farming their land.

#20 The U.S. government handed one Tennessee library $5,000 for the purpose of hosting a series of video game parties.

#21 A few years ago the government spent $123,050 on a Mother’s Day Shrine in Grafton, West Virginia. It turns out that Grafton only has a population of a little more than 5,000 people.

#22 One professor at Dartmouth University was given $137,530 to create a “recession-themed” video game entitled “Layoff”.

#23 According to the Heritage Foundation, the U.S. military spent “$998,798 shipping two 19-cent washers from South Carolina to Texas and $293,451 sending an 89-cent washer from South Carolina to Florida”.

#24 The U.S. Department of Agriculture once shelled out $30,000 to a group of farmers to develop a tourist-friendly database of farms that host guests for overnight “haycations”.

#25 The National Institutes of Health paid researchers $400,000 to find out why gay men in Argentina engage in risky sexual behavior when they are drunk.

#26 The National Institutes of Health also once spent $442,340 to study the behavior of male prostitutes in Vietnam.

#27 The National Institutes of Health loves to spend our tax money on really bizarre things. The NIH once spent $800,000in “stimulus funds” to study the impact of a “genital-washing program” on men in South Africa.

#28 According to the Washington Post, 1,271 different government organizations work on government programs related to counterterrorism and homeland security.

#29 The U.S. government spent $100,000 on a “Celebrity Chef Fruit Promotion Road Show in Indonesia”.

#30 The feds once gave Alaska Airlines $500,000 “to paint a Chinook salmon” on the side of a Boeing 737.

How in the world can our government be so foolish?

Anyone that claims that there is not a lot of stuff that can be cut out of the federal budget is lying to you.

All of this crazy spending is going to get us into a massive amount of trouble eventually. Already, on a per capita basis the U.S. national debt is worse than the national debts of Greece, Italy, Ireland, Portugal and Spain.

We have accumulated the biggest debt in the history of the world and we are adding to it at a rate of about 150 million dollars an hour.

Our politicians strut around as if they are the smartest and wisest leaders in the history of the world, but the truth is that someday people will look back in horror at the decline of our once great society.

The federal government needs to stop spending so much money on stupid things and needs to stop pushing our national debt to nightmarish new levels.

Unfortunately, the corruption in Washington D.C. is so deep and so pervasive that it is going to be almost impossible to turn it around.[/QUOTE]]

Where is your outrage over this pillage?

Obama Seeks to End Subsidies for Oil and Gas Companies


$5 a Gallon Gas on Way, Ex-Big Oil Exec Says
 
Re: Question: Why Is It that You Pitch A Bitch When So Called Government Has Taxes, B

I'm sorry, what does this have to do with why some are disappointed with higher taxes?

Did you mean to put this in another thread or something?

Read the thread topic...again!
 
Re: Question: Why Is It that You Pitch A Bitch When So Called Government Has Taxes, B

Here I go, sticking my mine into someone else's business.

The way I read it though;

T.O.'s position is: Why Is It that You Pitch A Bitch When So Called Government Has [or raises] Taxes[,] But[,] [w]hen the capitalists raise prices for no good reason you got excuses?.

Lamar counters: with examples where the government is spending needlessly [though, some of the examples of out-of-control spending are old and misleading]

T.O. then opines that when (A) Obama Seeks to End Subsidies for Oil and Gas Companies - - Lamar and others cry foul; but say nothing, for example, when (B) $5 a Gallon Gas on Way, Ex-Big Oil Exec Says - which I believe he is saying is an example of silence in the face big oil/capitalist taking advantage.​

If I am wrong (and I most certainly might be ..... LOL) then, maybe you guys can restate to the real issue.
 
Re: Question: Why Is It that You Pitch A Bitch When So Called Government Has Taxes, B

Here I go, sticking my mine into someone else's business.

The way I read it though;
T.O.'s position is: Why Is It that You Pitch A Bitch When So Called Government Has [or raises] Taxes[,] But[,] [w]hen the capitalists raise prices for no good reason you got excuses?.

Lamar counters: with examples where the government is spending needlessly [though, some of the examples of out-of-control spending are old and misleading]

T.O. then opines that when (A) Obama Seeks to End Subsidies for Oil and Gas Companies - - Lamar and others cry foul; but say nothing, for example, when (B) $5 a Gallon Gas on Way, Ex-Big Oil Exec Says - which I believe he is saying is an example of silence in the face big oil/capitalist taking advantage.
If I am wrong (and I most certainly might be ..... LOL) then, maybe you guys can restate to the real issue.

Lamarr understands, that's why he, as usual he will never broach the main subjects of my posts. He just continues to parrot unproven talking points

In a 'nut shell.' this is my basic premise. Those things that Lamarr posted add minuscule amounts to anyone's federal tax burden. It's a known fact that is easily proved that the biggest tax burdens are the bloated military industrial lode on are economic system and the so called entitlements, which has be successfully miss-tag by the right since we have paid in to Medicare and Social Security and will reap the payments years down the road.

If you are honest, the increases of the prices of gasoline, food, electricity, et al have far more of a devastating effect on our economy than what any government tax burden does. Please site an example of where someone has gone bankrupt or hungry because their taxes were too high. With the record profits of corporate America, no one as of yet has explained why the end costs to consumers have to be increased to justify the operating short falls of business expenses.
 
Re: Question: Why Is It that You Pitch A Bitch When So Called Government Has Taxes, B

Here I go, sticking my mine into someone else's business.

The way I read it though;

T.O.'s position is: Why Is It that You Pitch A Bitch When So Called Government Has [or raises] Taxes[,] But[,] [w]hen the capitalists raise prices for no good reason you got excuses?.

Lamar counters: with examples where the government is spending needlessly [though, some of the examples of out-of-control spending are old and misleading]

T.O. then opines that when (A) Obama Seeks to End Subsidies for Oil and Gas Companies - - Lamar and others cry foul; but say nothing, for example, when (B) $5 a Gallon Gas on Way, Ex-Big Oil Exec Says - which I believe he is saying is an example of silence in the face big oil/capitalist taking advantage.​

If I am wrong (and I most certainly might be ..... LOL) then, maybe you guys can restate to the real issue.

thought1 indicates that prices are going up for no good reason, and its simply not true. I've stated many times that prices rise due to the inflation of the money supply, it take a little time for the newly created money to move through the system, after that, the prices adjust to the total amount of money in circulation.

However, when a barrel of oil is priced in gold, the price of oil is falling! Thought1 can't explain that one, but then again, if he tried, he'd learn that I'm right!
 
Re: Question: Why Is It that You Pitch A Bitch When So Called Government Has Taxes, B

Crude-2006.png


Crude-1950.png
 
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Re: Question: Why Is It that You Pitch A Bitch When So Called Government Has Taxes, B

thought1 indicates that prices are going up for no good reason, and its simply not true. I've stated many times that prices rise due to the inflation of the money supply, it take a little time for the newly created money to move through the system, after that, the prices adjust to the total amount of money in circulation.

However, when a barrel of oil is priced in gold, the price of oil is falling! Thought1 can't explain that one, but then again, if he tried, he'd learn that I'm right!


Another one of your straw dogs. The price of oil has never been pegged to gold. You are bringing up an argument that no ligament economist has has ever premised.

Ron Paul ands his type are heavily vested in gold, so why wouldn't they argue for the collapse of the current US dollar based system.

Remember the Hunt brothers?
 
Re: Question: Why Is It that You Pitch A Bitch When So Called Government Has Taxes, B

ligament economist!

Ligament?

Ron Paul ands his type are heavily vested in gold, so why wouldn't they argue for the collapse of the current US dollar based system.

Gold is an instrument of wealth!

You can have your dollar debt-based note, we'd like competing currencies! Freedom is popular, even with currencies.
 
Re: Question: Why Is It that You Pitch A Bitch When So Called Government Has Taxes, B

Ligament?



Gold is an instrument of wealth!

You can have your dollar debt-based note, we'd like competing currencies! Freedom is popular, even with currencies.


So this gold bug is an opinion shared by a few right wingers. I addressed this in previous threads. You can dress a pig in silk, but it is still pork!

You never answered; who is this "Productive Class"?
 
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Re: Question: Why Is It that You Pitch A Bitch When So Called Government Has Taxes, B

Green Firms Get Fed Cash, Give Execs Bonuses, Fail

President Obama's Department of Energy helped finance several green energy companies that later fell into bankruptcy -- but not before the firms doled out six-figure bonuses and payouts to top executives, a Center for Public Integrity and ABC News investigation found.

Take, for instance, Beacon Power Corp., the second recipient of an Energy Department loan guarantee in 2009. In March 2010, the Massachusetts energy storage company paid cash bonuses of $259,285 to three executives in part due to progress made on the $43 million energy loan, Securities and Exchange Commission records show. Last October, Beacon Power filed for Chapter 11 bankruptcy.

EnerDel, maker of lithium-ion battery systems, landed a $118.5 million energy grant in August 2009. About one-and-a-half years later, Vice President Joe Biden toured a company plant in Indiana and heralded its taxpayer-supported expansion as one of the "100 Recovery Act Projects That Are Changing America."

Two months after Biden's visit, EnerDel corporate parent Ener1 paid $725,000 in bonuses to three executives --including $450,000 to then-CEO Charles Gassenheimer, who led Biden on the tour. This January, Ener1 filed for Chapter 11 bankruptcy protection.

At least two other firms that benefited from Energy Department funding -- one a $500,000 grant, the other a $535 million loan guarantee -- handed out hefty payouts to executives and later went bankrupt.

The Department of Energy, asked about the payments examined by the Center and ABC, said it is troubled by the practice and intends to convey that message to loan recipients.

"We don't begrudge companies or their executives for their success, but it is irresponsible for executives to be awarded bonus compensation when their workers are losing their jobs," said department spokeswoman Jen Stutsman. "We take our role as stewards of taxpayer dollars very seriously, and as such, we will make clear to loan recipients our view that funds should not be directed toward executive bonuses when the rest of the company is facing financial difficulty."

The bonuses and bankruptcies come against a growing wave of trouble for companies financed with Energy Department dollars. Of the first 12 loan guarantees the department announced, for instance, two firms filed for bankruptcy, a third has faced layoffs and a fourth deal never closed.

The nonprofit Citizens Against Government Waste counts nearly 20 energy companies that have gotten federal loan guarantees or grants that have run into financial trouble ranging from layoffs to losses to bankruptcies. An outside consultant hired by the White House said the Energy Department's loan pool includes $2.7 billion in potentially risky loans and suggests the agency hire a "chief risk officer" to help minimize problems.

To watchdogs, the pattern of firms awarding bonuses only to file for bankruptcy raises questions about how well the Energy Department chose its winners, and how thoroughly it kept an eye on them once selected.

"Giving a bonus to the executives under these circumstances is rewarding failure with our money with no chance of getting it back," said Leslie Paige, spokeswoman for the nonpartisan Citizens Against Government Waste.

"Taxpayers need some representation here. They didn't really get it."

The setbacks have sharpened the focus on the president's environmental mission, already under scrutiny following the collapse of Solyndra Inc., the first recipient of an Obama green energy loan.

Solyndra, bankruptcy records show, was among the companies doling out thousands in executive payments -- in its case, just months prior to its late August collapse and early September bankruptcy. As a criminal investigation and House inquiry continue into the company's implosion, the government must navigate bankruptcy proceedings in hopes of recovering a piece of its $535 million investment.

In interviews, executives with companies backed by public dollars defended the payments as proper. Some said bonuses were granted for work done in a previous year, before financial storm clouds had fully developed, and that the executive cash infusions were sometimes linked to broad corporate milestones.

One company executive said the Energy Department explicitly allows for federal funds to be used to pay out executive bonuses.

DOE does not set salaries and benefits of companies it backs, "but we do closely scrutinize all of the expenses submitted by the companies before they are reimbursed to ensure that taxpayer dollars are being used appropriately," said spokeswoman Stutsman. "Funds are paid out as the work is actually completed."

Secretary Steven Chu declined an interview request. The department has long defended the green energy movement as a way for government to help spur development of cutting-edge products that aid the environment and economy. Sometimes, they say, investments in potential game-changing technologies simply don't work. The potential default rate, they say, is within the parameters set by Congress.

Yet some members of Congress -- already concerned about lucrative paydays at bankrupt Solyndra -- say they're particularly troubled that failed companies backed by Energy Department funds would pay bonuses at all.

"Any company that's going into bankruptcy or any executive that ran a company into bankruptcy shouldn't be getting bonuses in the first place," said Sen. Charles Grassley, R-Iowa, former chairman of the Senate Finance Committee. "In the case where there might be federal grants or federal loans, I would be very concerned."
 
Re: Question: Why Is It that You Pitch A Bitch When So Called Government Has Taxes, B

Green Firms Get Fed Cash, Give Execs Bonuses, Fail

President Obama's Department of Energy helped finance several green energy companies that later fell into bankruptcy -- but not before the firms doled out six-figure bonuses and payouts to top executives, a Center for Public Integrity and ABC News investigation found.

Take, for instance, Beacon Power Corp., the second recipient of an Energy Department loan guarantee in 2009. In March 2010, the Massachusetts energy storage company paid cash bonuses of $259,285 to three executives in part due to progress made on the $43 million energy loan, Securities and Exchange Commission records show. Last October, Beacon Power filed for Chapter 11 bankruptcy.

EnerDel, maker of lithium-ion battery systems, landed a $118.5 million energy grant in August 2009. About one-and-a-half years later, Vice President Joe Biden toured a company plant in Indiana and heralded its taxpayer-supported expansion as one of the "100 Recovery Act Projects That Are Changing America."

Two months after Biden's visit, EnerDel corporate parent Ener1 paid $725,000 in bonuses to three executives --including $450,000 to then-CEO Charles Gassenheimer, who led Biden on the tour. This January, Ener1 filed for Chapter 11 bankruptcy protection.

At least two other firms that benefited from Energy Department funding -- one a $500,000 grant, the other a $535 million loan guarantee -- handed out hefty payouts to executives and later went bankrupt.

The Department of Energy, asked about the payments examined by the Center and ABC, said it is troubled by the practice and intends to convey that message to loan recipients.

"We don't begrudge companies or their executives for their success, but it is irresponsible for executives to be awarded bonus compensation when their workers are losing their jobs," said department spokeswoman Jen Stutsman. "We take our role as stewards of taxpayer dollars very seriously, and as such, we will make clear to loan recipients our view that funds should not be directed toward executive bonuses when the rest of the company is facing financial difficulty."

The bonuses and bankruptcies come against a growing wave of trouble for companies financed with Energy Department dollars. Of the first 12 loan guarantees the department announced, for instance, two firms filed for bankruptcy, a third has faced layoffs and a fourth deal never closed.

The nonprofit Citizens Against Government Waste counts nearly 20 energy companies that have gotten federal loan guarantees or grants that have run into financial trouble ranging from layoffs to losses to bankruptcies. An outside consultant hired by the White House said the Energy Department's loan pool includes $2.7 billion in potentially risky loans and suggests the agency hire a "chief risk officer" to help minimize problems.

To watchdogs, the pattern of firms awarding bonuses only to file for bankruptcy raises questions about how well the Energy Department chose its winners, and how thoroughly it kept an eye on them once selected.

"Giving a bonus to the executives under these circumstances is rewarding failure with our money with no chance of getting it back," said Leslie Paige, spokeswoman for the nonpartisan Citizens Against Government Waste.

"Taxpayers need some representation here. They didn't really get it."

The setbacks have sharpened the focus on the president's environmental mission, already under scrutiny following the collapse of Solyndra Inc., the first recipient of an Obama green energy loan.

Solyndra, bankruptcy records show, was among the companies doling out thousands in executive payments -- in its case, just months prior to its late August collapse and early September bankruptcy. As a criminal investigation and House inquiry continue into the company's implosion, the government must navigate bankruptcy proceedings in hopes of recovering a piece of its $535 million investment.

In interviews, executives with companies backed by public dollars defended the payments as proper. Some said bonuses were granted for work done in a previous year, before financial storm clouds had fully developed, and that the executive cash infusions were sometimes linked to broad corporate milestones.

One company executive said the Energy Department explicitly allows for federal funds to be used to pay out executive bonuses.

DOE does not set salaries and benefits of companies it backs, "but we do closely scrutinize all of the expenses submitted by the companies before they are reimbursed to ensure that taxpayer dollars are being used appropriately," said spokeswoman Stutsman. "Funds are paid out as the work is actually completed."

Secretary Steven Chu declined an interview request. The department has long defended the green energy movement as a way for government to help spur development of cutting-edge products that aid the environment and economy. Sometimes, they say, investments in potential game-changing technologies simply don't work. The potential default rate, they say, is within the parameters set by Congress.

Yet some members of Congress -- already concerned about lucrative paydays at bankrupt Solyndra -- say they're particularly troubled that failed companies backed by Energy Department funds would pay bonuses at all.

"Any company that's going into bankruptcy or any executive that ran a company into bankruptcy shouldn't be getting bonuses in the first place," said Sen. Charles Grassley, R-Iowa, former chairman of the Senate Finance Committee. "In the case where there might be federal grants or federal loans, I would be very concerned."


You never answered; who is this "Productive Class"?


You mouth making promises your ass can't cash!
 
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