
Obama at Solyndra
Op Ed from the Desk of South Dakota Senator Dan Lederman
President Obama has run the government in a manner straight out of the Chicago politics handbook. He has engaged in the typical back-scratching business of Chicago-style government, rewarding his friends (i.e. big fundraisers) at the expense of the rest of the country, as illustrated below.
Obama Spent Millions Propping up Failed Solar Company
March 7, 2009 Obama Administration made available a half a billion dollars to the solar panel manufacturer Solyndra. The loan was pushed through with stimulus funds despite the fact that the Energy Department predicted the firm would run out of money in September 2011. True to the prediction, Solyndra ran out of money and filed for bankruptcy in September, eliminating 1,100 green jobs.
The primary investor in Solyndra, George Kaiser, raised $50,000 to $100,000 for Obama’s election campaign and donated over $50,000 himself. In fact, Solyndra executives together donated $87,000 to the President’s election campaign, and Solyndra itself has spent over half a million dollars lobbying for bills such as American Clean Energy Leadership Act of 2009 and the Solar Manufacturing Jobs Creation Act. In 2009, the Administration fast-tracked Solyndra’s government loan, promising the firm would help create 4,000 jobs.
Obama Courts United Auto Workers
Obama has long courted the United Auto Workers (UAW) union. Union workers have been overwhelmingly supportive of President Obama. The UAW union spent $5 million to elect President Obama, according to OpenSecrets.org. The union has been rewarded with special protection in General Motors Corporation’s bankruptcy. Under pressure from the Obama Administration, secured bondholders have been pressured to accept a preferential treatment to competing unsecured workers with $20.4 billion in health care obligations. This flies in the face of usual bankruptcy laws, which prefer secured creditors, such as bondholders, over unsecured creditors, although a bankrupt company is required to pay retiree benefits as well. One group of bondholders, Main Street Bondholders, was quoted as calling the treatment a “gross unfairness in giving unions an estimated five times more dollar value per claim than the small bondholders.”
The Obama Administration’s courting of the UAW union has continued. The Administration has voiced its agenda to promote the union in Detroit. Department of Transportation’s Ray LaHood pounced on Toyota when it recalled eight of its models in 2010. LaHood told Toyota owners to stop driving their Toyotas, and then retracted his statement slightly later that same day. LaHood said in a statement that his agency would “continue to hold Toyota’s feet to the fire to make sure they…make their vehicles safe.” It goes without saying that holding Toyota’s feet to the fire had an added benefit to Detroit automakers.
Obama Rewards Friends with Obamacare Waivers
The Obama Administration has handed out waivers to friends and supporters, allowing them to avoid requirements of Obamacare. Recipients of the waivers include International Brotherhood of Electrical Workers Union 195, United Food and Commercial Workers Local 227, Service Employees International Union Local 25, Transport Workers Union, and International Union of Painters and Allied Trades (AFL-CIO). It is unclear what criteria the Department of Health and Human Services utilizes to grant these waivers. It is clear, however, that many of the recipients have enjoyed cozy relationships with Obama.
Obama Rewards Fundraisers with Plum Jobs
The President appointed Louis Susman as the U.S. Ambassador to the U.K. in 2009. Susman has earned the nicknames “The Vacuum Cleaner” and “The Big Bundler” due to his innate ability to raise money for Obama and other democrats. In fact, Susman raised more than $500,000 for Obama’s campaign. In addition, Citigroup received $45 billion in bailout funds while Susman was a vice-chairman there. Susman has been greatly rewarded with his desirable ambassadorship.
Obama Cozies Up to GE
Earlier this year, President Obama appointed Jeffrey R. Immelt as Chairman of the Economic Recovery Advisory Board. This continues the trend of the close friendship between Obama and GE. In 2009, Immelt earned $5,487,155 for his position at GE, where he has steadily been moving parts of the company to China. Most recently, GE moved the headquarters of its x-ray business and jobs to China. According to its Securities and Exchange Commission filing, since 2001, GE has eliminated 34,000 jobs in the U.S. while adding 25,000 jobs overseas. In addition, GE has reinvested prior year earnings outside the country to lower its tax rate. In 2009, it reported an effective negative tax rate, realizing a $1.1 billion tax benefit. Under Immelt, GE also obtained funds through the Federal Reserve and Federal Deposit Insurance Corporation from programs meant to free up the credit market. This is the Chairman of the Jobs Commission. Finally, Obama supports what GE supports, including cap and trade and nuclear power, which GE is working to develop. The president proposes that the government should back $46 billion in loans to build new nuclear plants.
Obama’s Appointee Fails Constituents
President Obama appointed Jo-Ellen Darcy as Assistant Secretary of the Army (Civil Works). She is in charge of flood control for the Missouri River basin. Prior to her appointment, Darcy was an environmental advisor for the Senate Environment and Public Works Committee. Although Darcy has advised the Senate on resource control since the 1990s, as the civilian chief of the Army Corps of Engineers, Darcy has overseen the Corps as it has lost what should be its primary purpose in managing the Missouri River: flood control. As a result, Darcy’s management failed to prevent the massive damage caused by the flooding of the Missouri River this year. This is but one example of the President putting unexperienced individuals in prime positions. Unfortunately, in this case, his appointment failed to prevent immeasurable damage to roads, bridges, farms, homes, and businesses.
Obama has engaged in a consistent pattern of placing his friends and fundraisers in top government spots. As a South Dakotan, it is important to point out that our own U.S. Senator Tim Johnson has failed to cast a single negative vote on the appointments and favors. The Administration’s back-scratching has cost taxpayers the funds foolishly invested in Solyndra, resulted in the mismanagement which lost sight of flood control, and singled out friends and supporters for waivers from Obamacare. The result is Chicago politics as usual in Washington.

Missouri River Flood