Report: Obama Should Spend $100B on Green Stimulus


Now that the credit crunch has blown a hole in investment and consumer spending and the housing market has crashed, President-elect Barack Obama will be looking to stimulate the economy through hundreds of billions of dollars in spending. A report from UBS Investment Research and the Center for American Progress lays out a plan for how Obama could spend $350 billion in a year, and the stunning part is this: The groups suggest that over $100 billion of that should be spent on green job and infrastructure investments (breakdown below).

That green stimulus spending will also help a variety of stocks, say analysts with UBS Investment Research. Analyst Jason Feldman says spending on building out the power grid and making it smarter will benefit smart meter company Itron (s ITRI), as well as electrical transmission and distribution builder Cooper Industries (s CBE) — and of course GE (s GE) with its Ecomagination initiative. Analyst Stephen Chin says First Solar (s FSLR), Applied Materials (s AMAT) and SunPower (s SPWRA) will benefit from a solar infrastructure build out.

Wondering what other sectors could see some of the suggested green stimulus plan? Here’s the breakdown:

  • Green school construction and renovation, $7.3 billion
  • Greening affordable housing, $5.0 billion
  • Green job creation, $100.0 billion

That green job creation portion will include (but is only a portion of the spending):

  • The Weatherization Assistance Program, $0.9 billion
  • The Federal Energy Management Program, $1.3 billion
  • Refundable residential energy efficiency tax credits, $5.0 billion
  • Solar roofs on federal buildings, $3.5 billion
  • Smart grid federal matching funds, $1.3 billion
  • Building retrofits, $10.0 billion
  • Energy efficiency and conservation block grants, $5.0 billion
  • “Cash for Clunkers” rebates for older cars, $2.5 billion
  • Electric transmission grid, $10.0 billion
  • Advanced technology vehicle manufacturing and retooling, $7.5 billion
  • Replacing aging buses and acquiring rail cars, $4.0 billion
  • Local transit infrastructure, $8.0 billion



This past year the exorbitant cost of fuel nearly destroyed our economy and seriously damaged our society. That one single factor alone affected every single facet of our economy and society. Filling up at the pump broke most family budgets alone. Added to that was the financial burden of sharp increases in every consumer product because the increased cost of fuel was passed on through the production and shipping of such products. Utility companies sought and were granted record price hikes further straining the family budget. WE cut back, cut out frills, for some that was not going out to eat any longer, cutting off the home phone and only using the cell. Shutting the cable off, or maybe going longer to replace things that really need replaced like the family car, tires, clothing etc. Sadly some have had to go so far as to cut out necessary medications just to keep a roof over their heads. Day after day sad stories are on the news about animal shelters bursting at the seams as families either lost their homes or can no longer feed their pets. Cutting back further reduces consumer spending which results in even more jobs lost. While we are so busy doing the happy dance at the pumps at the lower gas prices OPEC is planning to cut production until the reach their desired 75-100. per barrel price. My electric bill went up 16% during the height of this, now they are talking about reducing it 4% since fuel is back down. What happened to the other 12%? Groceries have not come back down and most are in smaller packaging so we are paying more for less. Freddie and Fannie have taken most all the blame for our society’s economy. Of all the homes I have seen lost in FL and I have seen many and many more in the process none have been due to an adjustable mortgage like the media likes to portray, they have been due to lack of employment. Those who do still have a job have seen tremendous cutbacks in hours available which cuts their check, some in half. WE need to use some of these stimulus/bailout dollars to make America Energy Dependent. It would cost the equivalent of 60 cents a gallon to charge and drive an electric car. The electricity to charge the car could conceivably be generated by solar or wind. If all gasoline cars, trucks, and suv’s instead had plug-in electric drive trains, the amount of electricity needed to replace gasoline is about equal to the estimated wind energy potential of the state of North Dakota.What a win -win situation it would be for our nation to create clean, cheap electricity, create millions of badly needed new green collar jobs and at the same time we could reduce and eventually eliminate our dependence on foreign oil. I just read a fascinating and profound book by Jeff Wilson called The Manhattan Project of 2009 Energy Independence Now. The plan outlined in his book would save this country from financial ruin as well as get us out from under our dependence on foreign oil. I encourage all to read this book, especially our politicians. Also I encourage all of you to visit Better Place @ to see the work this new company is doing to make our country energy independent. There is a tab on the upper right hand side of the page to click to sign up for news letters and sign an online petition. Very worthwhile. We have to do our part as citizens to educate ourselves and be more proactive.

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