Obama to 'Invest' $500 Million Tax Dollars in 'Partnership' Between the Feds and 11 Major Corporations

Obama Will 'Co-Invest' Tax Dollars in Corporate-Government Partnership

June 26, 2011

CNSNews.com - In his weekly address released Saturday, President Barack Obama called for a campaign of "nation building here at home," citing as an example of what is needed to rebuild the American economy an initiative he announced Friday to "invest" tax dollars in what he called a "partnership" between the federal government and an initial group of 11 major corporations.

The administration's corporate partners in this venture include Caterpiller, Corning, Dow Chemical, Ford, Honeywell, Intel, Johnson and Johnson, Allegheny Technologies, Stryker and Proctor and Gamble.

Editor's Note:

Caterpillar Inc. is the bulldozer manufacturer that President Barack Obama used to help push his $787 billion stimulus plan. Chief Executive Officer Jim Owens, 63, is a member of the president’s Economic Recovery Advisory Board. Obama visited the Peoria, Illinois, headquarters on February 12, 2009, the final day of his campaign to press for Congressional passage. - How’s the stimulus working out for Caterpillar?, Michelle Malkin, April 21, 2009

Caterpillar Inc. of Illinois announced nearly 2,400 layoffs despite President Obama using his home state’s company as an example of a struggling manufacturer that would benefit from his economic stimulus plan and save jobs. The new round of job cuts will span five plants in Illinois, Indiana and Georgia, and follows the January news that Caterpillar would slash 22,000 people from its 112,000-person workforce. Mr. Obama hosted an event in support of his stimulus plan at the company’s Peoria, Ill., headquarters in mid-February, saying the $787 billion stimulus would be “a major step forward on our path to economic recovery.” - Caterpillar slashes jobs despite stimulus, Washington Times, March 17, 2009

Obama is not seeking new legislation from Congress to authorize his government-corporate partnership program--which he is calling the "Advanced Manufacturing Partnership"--and he did not say how the corporations in the partnership had been chosen.

"The President’s plan, which leverages existing programs and proposals, will invest more than $500 million to jumpstart this effort," the White House said in a statement released Friday.

"Even though we’ve turned our economy in the right direction over the past couple of years, many Americans are still hurting, and now is the time to focus on nation building here at home," Obama said before explaining the partnership in his Saturday address.

In addition to the 11 corporations, the administration also picked a small group of universities to participate in the government-corporate partnership. These include the Massachusetts Institute of Technology, Carnegie Mellon University, Georgia Institute of Technology, Stanford University, the University of California-Berkeley and the University of Michigan. The White House did not say how these universities were selected.

In a speech in Pittsburgh Friday announcing the government-corporate partnership program, Obama said that in American history such partnerships have often led the way in enterpreneurial breakthroughs.

"Throughout our history, our greatest breakthroughs have often come from partnerships just like this one," said Obama. "American innovation has always been sparked by individual scientists and entrepreneurs, often at universities like Carnegie Mellon or Georgia Tech or Berkeley or Stanford. But a lot of companies don’t invest in early ideas because it won’t pay off right away. And that’s where government can step in."

As described in the White House statement, the largest single element of the partnership program will have the Departments of Commerce, Agriculture, Homeland Security, Energy and Defense spending an estimated $300 million in tax dollars to "co-invest with industry" in the development of products including "small high-powered batteries" and "alternative energy."

"Starting this summer, the Departments of Defense, Homeland Security, Energy, Agriculture, Commerce and other agencies will coordinate a government-wide effort to leverage their existing funds and future budgets, with an initial goal of $300 million, to co-invest with industry in innovative technologies that will jumpstart domestic manufacturing capability essential to our national security and promote the long-term economic viability of critical U.S. industries," said the White House statement. "Initial investments include small high-powered batteries, advanced composites, metal fabrication, bio-manufacturing, and alternative energy, among others."

In his weekly address, President Obama explained his view that "nation building here at home" means government "investment" in education and infrastructure, as well as in the development of technology--including the kind of "clean energy" technology that will be one focus of his new government-corporate partnership.

"That means giving our kids the best education in the world so they have the knowledge and skills to succeed in this economy. It means rebuilding our crumbling roads, railways, and runways," said Obama. "And it means investing in the cutting-edge research and technologies that will spur growth in the years ahead – from clean energy to advanced manufacturing."

In his Friday speech at Pittsburgh as he announced the Advanced Manufacturing Partnership, Obama also put a focus on government "investment" in "clean energy" and pointed to the government bailouts of General Motors and Chrysler as successes.

"If we want a robust, growing economy, we need a robust, growing manufacturing sector. That’s why we told the auto industry two years ago that if they were willing to adapt, we’d stand by them. Today, they’re profitable, they’re creating jobs, and they’re repaying taxpayers ahead of schedule," said Obama.

"That's why we’ve launched a partnership to retrain workers with new skills. That’s why we’ve invested in clean energy manufacturing and new jobs building wind turbines and solar panels and advanced batteries," he said.

The White House said the creation of the government-corporate partnership program was based on a recomendation by the President's Council of Advisers on Science and Technology (PCAST). PCAST is co-chaired by John Holdren, head of the White House Office of Science and Technology Policy.

In Human Ecology: Problems and Solutions, a 1973 book that he co-authored with Paul Ehrlich and Anne H. Ehrlich, Holdren and his co-authors wrote:

“A massive campaign must be launched to restore a high-quality environment in North America and to de-develop the United States."

“De-development means bringing our economic system (especially patterns of consumption) into line with the realities of ecology and the global resource situation,” Holdren and the Ehrlichs wrote.

“Resources must be diverted from frivolous and wasteful uses in overdeveloped countries to filling the genuine needs of underdeveloped countries," Holdren and his co-authors wrote.

"This effort must be largely political, especially with regard to our overexploitation of world resources, but the campaign should be strongly supplemented by legal and boycott action against polluters and others whose activities damage the environment. The need for de-development presents our economists with a major challenge. They must design a stable, low-consumption economy in which there is a much more equitable distribution of wealth than in the present one. Redistribution of wealth both within and among nations is absolutely essential, if a decent life is to be provided for every human being.”

In a videotaped interview with CNSNews.com in September 2010, reporter Nicholas Ballays asked Holdren what he meant by a campaign to de-develop the United States.

“What we meant by that was stopping the kinds of activities that are destroying the environment and replacing them with activities that would produce both prosperity and environmental quality," said Holdren. "Thanks a lot.”

Ballasy followed-up: “And how do you plan on implementing that?”

“Through the free market economy,” Holdren said.

Here is the September 2010 videotape of White House Science Adviser Holdren explaining his call for de-developing the United States: