More free money, up to $12,000

Discussion in 'Economics' started by S2007S, Dec 9, 2009.

  1. S2007S


    This keeps getting better and better by the day, all these free incentives to go out and buy things is just getting to the point where its just going to fuck up the power of consumer psychology over the long term. With all these free handouts like $8000 tax credits, cash for clunkers and now cash for Caulkers what else can they come up with, just last year they were handing out $600 bucks to throw back into the economy, that didnt work either.............what an upside down economy this is, just a reminder, this isnt going to fix anything, as long as they keep the economy propped up the longer this credit crisis is going to last. You have to let the pieces of the puzzle fall where they should fall and not intervene during the process.

    Cash for Caulkers could mean $12K per home

    * By Steve Hargreaves, staff writer
    * On 6:24 pm EST, Tuesday December 8, 2009

    President Obama proposed a new program Tuesday that would reimburse homeowners for energy-efficient appliances and insulation, part of a broader plan to stimulate the economy.

    The administration didn't provide immediate details, but said it would work with Congress on crafting legislation. Steve Nadel, director at the American Council for an Energy-Efficient Economy, who's helping write the bill, said a homeowner could receive up to $12,000 in rebates.

    The proposal is part of the President's larger spending plan, which also includes money for small businesses, renewable energy manufacturing, and infrastructure.

    We know energy efficiency "creates jobs, saves money for families, and reduces the pollution that threatens our environment," Obama said. "With additional resources, in areas like advanced manufacturing of wind turbines and solar panels, for instance, we can help turn good ideas into good private-sector jobs."

    The program contains two parts: money for homeowners for efficiency projects, and money for companies in the renewable energy and efficiency space.

    The plan will likely create a new program where private contractors conduct home energy audits, buy the necessary gear and install it, according to a staffer on the Senate Energy Committee and Nadel at the American Council for an Energy-Efficient Economy.

    Big-ticket items like air conditioners, heating systems, washing machines, refrigerators, windows and insulation would likely be covered, Nadel said.

    Consumers might be eligible for a 50% rebate on both the price of the equipment and the installation, up to $12,000, said Nadel. So far, there is no income restriction on who is eligible. That would mean a household could spend as much as $24,000 on upgrades and get half back.

    Homes that take full advantage of the program could see their energy bills drop as much as 20%, he said. The program is expected to cost in the $10 billion range.

    It's not clear how the home efficiency plan would be administered - the government may issue rebates to consumers directly, homeowners might get a tax credit, or the program could be run via state agencies.

    If consumers have to spend a lot of money up front to get the credit, it could throw a wrench in the works, David Kreutzer, an energy analyst at the Heritage Foundation, told CNN.

    "This will not be something that's attractive to people who are having trouble already making their budget payments month to month or week to week," he said.

    To keep consumers from having to spend thousands of dollars before getting reimbursed, Nadel said, one idea is to have contractors or big box retailers pay part of the cost up front.

    Fraud issues could also come up, Kreutzer said.

    "Any program that is going to run through a third party and is going to distribute billions of dollars needs to have lots of checks and balances to make sure there's not abuse," he said.

    Nadel noted that as a way to guard against fraud, contractors would have to be certified to participate.

    Energy company boost

    Obama's new spending plan also calls for renewable energy companies to get additional support. That could come in the form of loan guarantees - basically, money the government uses to secure loans for startups.

    In the original stimulus bill passed earlier this year, $6 billion was earmarked for such loan guarantees. But then lawmakers took away $2 billion to fund Cash for Clunkers - the popular program that paid people to turn in their old cars.

    The $4 billion from the original bill has funded about $40 billion in loans, said the staffer on the Senate Energy Committee. Meanwhile, firms are hoping for another $4 billion in loan guarantees, since they have another $40 billion worth of projects that need funding.

    A bill on energy efficiency reimbursements already has supporters in the Senate.

    "Not only will [such legislation] increase our energy security and transform our energy infrastructure to a modern, clean and efficient one," Senate Energy Committee Chairman Jeff Bingaman, D-N.M., wrote in a recent op-ed column in the Hill, a Capitol Hill newspaper. "But it also will position the United States to lead in the development of clean energy technologies."
  2. That's the idea. To generate a psychological dependency on government.
  3. The Obama adminstration is anti-business, anti-captial, anti-entrepreneurship, anti-personal freedoms, and anti-success.

    Until and unless America makes RADICAL changes to become hugely more tax and business friendly, we will not fix our situation.
  4. TGregg


    That would mean no more goodies. Most of us say "Screw that, give me my ice cream."

    :( :( :(
  5. This can't be Obama who proposed this. There has to be other people who are accountable for this. What is our government thinking? Who is doing the thinking?


    And I'm sure we'll see yet more fraud with this program as we've seen with others.

    With the fraud in the $8K first time buyers of homes -- they should nail the mortgage lender, real estate agent, government employees overseeing the program and anyone else involved in such (fraudulent) transactions and force them to cough up the $$$ attributed to each case of fraud. Until there's any ACCOUNTABILITY the fraud will continue more money will be pissed away making our deficit that much worse.
  7. ?.....Dap Caulk Company, Corning Insulation Company, Pella Window Company, GE Appliances, Maytag, Whirlpool, Kenmore, Trane Company, Carrier Company, Stanley Hardware, Home Depot, Lowes...............:cool:
  8. how is it antibusiness.

    Private contractors and business will make a huge windfall from this free money.

    We hand out billions annually to foreign countries for financial help. (free money to africa etc..)

    No one ever screams about that.
  9. 1500 dollar GE Hybrid waterheater, announced right after Obama was elected just in time for this new incentive.


    First, the state of Kentucky and the city of Louisville are already providing subsidies to GE to manufacture the water heaters. As a GE news release said this spring:
    "Up to $17 million in incentives from the state and metro government will be made available for the design and construction of the new energy-efficient hybrid electric water heater and for several other investments that the Company will make at Appliance Park over the next several years, which will total over $69 million ... Kentucky also will provide funds to train employees for the new jobs and will exempt from sales tax certain materials purchased to construct new facilities."
  10. Higher taxes, more regulations to comply with, looks like additional health care cost burden... all of which are business "unfriendly".
    #10     Dec 9, 2009