Small Businesses Get Burned While Special Interests Sunbathe

May 23, 2012

Democrats Double Down on Taxpayer-Funded Favors for Special Interests as Small Businesses Struggle in the Obama Economy

  • A report out this week highlights another promise broken by President Obama by documenting how lobbyists for special interests have unparalleled access to the Obama White House.
  • This is just the latest evidence of the Democrats’ favors for their special interest allies, such as now-bankrupt companies like Solyndra that were backed by Democrat campaign donors.
  • As Democrats dish favors for special interests, small businesses are struggling under the weight of the Obama economy and the Democrats’ failed policies.

A report out this week highlights another promise broken by President Obama by documenting how lobbyists for special interests have unparalleled access to the Obama White House:

OBAMA WHITE HOUSE SEES A “STEADY STREAM OF LOBBYISTS”: “It was an unremarkable January day, with a steady stream of lobbyists among the thousands of daily visitors to the White House and the surrounding executive office buildings, according to a Washington Post analysis of visitor logs released by the administration. The Post matched visits with lobbying registrations and connected records in the visitor database to show who participated in the meetings, information now available in a search engine on the Post’s web site.” (TW Farnum, “White House Visitor Logs Provide Window Into Lobbying Industry,” The Washington Post, 5/20/2012) 

“THE LOBBYING INDUSTRY OBAMA HAS VOWED TO CONSTRAIN IS A REGULAR PRESENCE”: “The visitor logs for Jan. 17 — one of the most recent days available — show that the lobbying industry Obama has vowed to constrain is a regular presence at 1600 Pennsylvania Ave.” (TW Farnum, “White House Visitor Logs Provide Window Into Lobbying Industry,” The Washington Post, 5/20/2012)

LOBBYISTS WITH PERSONAL CONNECTIONS TO THE WHITE HOUSE ENJOY THE EASIEST ACCESS”: (TW Farnum, “White House Visitor Logs Provide Window Into Lobbying Industry,” The Washington Post, 5/20/2012) 

IN OBAMA’S WHITE HOUSE, “YOU NEED A LOBBYIST TO GET A MEETING”:Andrew Menter, the chief executive of Vivature Health, said that Downey helped set up a meeting for him in December 2010 with Michael Hash, a top health-policy official. The group discussed how the new health-care law might affect Menter’s business, a Texas-based company that provides billing services for college health programs.  ‘The whole process was interesting for me. It’s a little scary,’ Menter said. ‘You need a lobbyist to get a meeting.'” (TW Farnum, “White House Visitor Logs Provide Window Into Lobbying Industry,” The Washington Post, 5/20/2012)

This is just the latest evidence of the Democrats’ favors for their special interest allies, such as now-bankrupt companies like Solyndra that were backed by Democrat campaign donors:

STIMULUS LOANS FOR SPECIAL INTERESTS:

CRONY CAPITALISM? WASHINGTON POST AUDIT FOUND $3.9 BILLION IN TAXPAYER MONEY WENT TO “21 COMPANIES WITH CONNECTIONS TO FIVE OBAMA ADMINISTRATION STAFFERS AND ADVISERS”: “During the next three years, the department provided $2.4 billion in public funding to clean-energy companies in which Wagle’s former firm, Vantage Point Venture Partners, had invested, a Washington Post analysis found. Overall, the Post found that $3.9 billion in federal grants and financing flowed to 21 companies backed by firms with connections to five Obama administration staffers and advisers.” (Carol Leonnig and Joe Stephens, “Venture Capitalists Play Key Role in Obama’s Energy Department,” The Washington Post, 2/14/2012)

A CONFLICT OF INTEREST? “INDUSTRY HAD A HUGE STAKE” IN WHICH FIRMS RECEIVED GOV’T SUPPORT: “At the same time, their industry had a huge stake in decisions about which companies would receive government loans, grants and support.” (Carol Leonnig and Joe Stephens, “Venture Capitalists Play Key Role in Obama’s Energy Department,” The Washington Post, 2/14/2012)

OBAMA’S DOE LENT $14.5 BILLION OVER 27 PROJECTS, “TURNED A BLIND EYE TO THE RISKS THAT HAVE BEEN GLARINGLY APPARENT”: “By the expiration of § 1705 program in September 2011, the DOE had approved 27 projects totaling more than $14.5 billion in guaranteed loans. Inexplicably, DOE management has turned a blind eye to the risks that have been glaringly apparent since the inception of the program.” (“The Department of Energy’s Disastrous Management of Loan Guarantee Program,” U.S. House of Representatives Committee on Oversight and Government Reform, 3/20/2012)

“REPORT: ENERGY LOANS COULD COST $3B” FROM “HIGH-RISK” GREEN PROGRAMS: (“Report: Energy Loans Could Cost $3B,” Associated Press, 2/10/2012)

PRICE TAG FOR FAILED STIMULUS: $831 BILLION: (“CBO’s Estimates of ARRA’s Economic Impact,” Congressional Budget Office, 2/22/2012)

SOLYNDRA AND BRIGHTSOURCE ENERGY LOBBIED HARD FOR LOANS:

$535 MILLION LOST ON NOW-BANKRUPT SOLYNDRA: (Jim Snyder and Brian Wingfield, “Solyndra $535 Million Loan Guarantee Mostly Lost to Taxpayers, Chu Tells Lawmakers,” Bloomberg, 11/17/2011) 

TOP OBAMA BUNDLER GEORGE KAISER “WEIGHED ASKING WHITE HOUSE TO SAVE SOLYNDRA” AS IT WAS FAILING: (Matthew Mosk, “Emails: Obama Donor Weighed Asking White House to Save Solyndra,” ABC News, 11/9/2011)

KAISER WAS SOLYNDRA’S BIGGEST INVESTOR AND PLOTTED TO GET WHITE HOUSE HELP TO GET SECOND STIMULUS LOAN AND GOVERNMENT CONTRACTS: (Joe Stephens, “Solyndra E-mails Show Obama Fundraiser Discussed Lobbying White House,” The Washington Post, 11/9/2011)

STEVE SPINNER’S SOLYNDRA ROLE: DOE OFFICIAL AND “OBAMA FUNDRAISER PUSHED SOLYNDRA LOAN” DESPITE PLEDGE TO RECUSE HIMSELF; HIS WIFE WAS SOLYNDRA LOBBYIST: (Matthew Daly, “Obama Fundraiser Pushed Solyndra Loan,” Associated Press, 10/7/2011

BRIGHTSOURCE ENERGY GOT $1.6 BILLION LOAN GUARANTEE, NOW FACING FINANCIAL STRUGGLES AFTER CANCELLING ITS IPO: (Dana Hull, “BrightSource Shelves IPO, Walks Away from Public Markets,” The San Jose Mercury News,4/18/2012) 

THE REVOLVING DOOR OF SPECIAL FAVORS: NOW-COMMERCE SEC. JOHN BRYSON WAS FORMERLY BRIGHTSOURCE CEO, HAD SOUGHT SPECIAL TREATMENT FROM TOP OBAMA OFFICIALS: “Republicans alleged at a hearing Wednesday that Bryson, while chairman of BrightSource Energy, planned to lobby the White House for speedy finalization of a $1.6 billion loan guarantee for the Ivanpah solar generation project in California. … Woolard shared with Silver a draft version of a letter from Bryson to then-White House Chief of Staff Bill Daley calling for finalization of the company’s loan guarantee for Ivanpah, a huge solar power plant being constructed in California’s Mojave Desert.” (Andrew Restuccia, “House GOP’s Energy Dept. Loan Probe Could Ensnare Two Cabinet Secretaries,” The Hill, 5/16/2012)

OTHER SIBLINGS OF SOLYNDRA:

BEACON POWER GOES BANKRUPT AFTER $43 MILLION OBAMA STIMULUS LOAN: (Tom Hals and Roberta Rampton, “Beacon Power Bankrupt; had U.S. backing like Solyndra,” Reuters, 10/31/2011) 

ABOUND SOLAR HALTED PRODUCTION, LAID OFF WORKERS AFTER $400 MILLION STIMULUS LOAN: (Todd Woody, “Abound Solar, Recipient of $400 Million Federal Loan Guarantee, Halts Production,” Forbes, 3/1/2012) 

OBAMA-BACKED AMONIX LAID OFF 200 WORKERS EARLY THIS YEAR, RECEIVED $5.9 MILLION TAX CREDIT IN 2010: (Neil Munro, “More Solyndra-Style Failure: Obama-tied Amonix Lays Off Most of Company,” The Daily Caller, 1/30/2012)

As Democrats dish favors for special interests, small businesses are struggling under the weight of the Obama economy and the Democrats’ failed policies:

POLL: SWING STATE SMALL BUSINESS OWNERS SUPPORT ROMNEY OVER OBAMA 53% TO 32%: “On Tuesday, Manta released new polling showing that, in what are expected to be the most hotly contested states come November, less than one out of three (32 percent) small business owners plan to vote for a second term for Obama, while more than half (53 percent) plan to vote for Mitt Romney or whoever wins the GOP nomination.” (J.D. Harrison, “Poll: Swing State Small Business Owners Leaning Towards Romney,” The Washington Post, 5/22/2012)

SMALL BUSINESSES VERY CONCERNED ABOUT HEALTHCARE, TAXES AND GOVERNMENT REGULATIONS: “Nearly one in five (19 percent) swing state small business owners said health care was the most important political issue, followed closely by tax policy (17 percent) and government regulations (14 percent).” (J.D. Harrison, “Poll: Swing State Small Business Owners Leaning Towards Romney,” The Washington Post, 5/22/2012)

50% OF SMALL BUSINESS SAY GOP MOST SUPPORTIVE OF SMALL BUSINESS, ONLY 22% NAME DEMOCRATS: Half of respondents said they believe the Republican Party is the most supportive of small business, significantly higher than the 22 percent that selected Democrats.” (J.D. Harrison, “Poll: Swing State Small Business Owners Leaning Towards Romney,” The Washington Post, 5/22/2012)

49% OF SMALL BUSINESSES SAY IT IS “DIFFICULT” TO PAY DOWN THEIR DEBT BURDEN: “Even as small-business owners seek to reduce their debt, 49% say it is extremely difficult (10%), very difficult (10%), or somewhat difficult (29%) to pay down their current business debt.” (Dennis Jacobe, “One-Third of Small-Business Owners Feel Debt Burden,” Gallup, 5/16/2012)

REPORT: “LEADING ECONOMIC INDICATORS DIP IN APRIL”: (Ruth Mantell, “Leading Economic Indicators Dip in April,” MarketWatch, 5/17/2012) 

CONSUMER CONFIDENCE AT “A LEVEL ASSOCIATED WITH RECESSIONS OR THEIR AFTERMATHS”: “Consumer confidence dropped last week to the lowest level since the end of January as slower U.S. job growth contributed to pessimism about personal finances and spending. The Bloomberg Consumer Comfort Index fell in the week ended May 13 to minus 43.6, a level associated with recessions or their aftermaths, from minus 40.4 in the previous period. The monthly expectations measure was little changed as Americans see scant improvement in the world’s largest economy.” (Timothy R. Homan, “Consumer Comfort In U.S. Drops To Nearly A Four-Month Low,” Bloomberg, 5/17/2012)

ECONOMY IS “STILL STRUGGLING TO GAIN MOMENTUM” AND “GROWTH IS SLOW, BUT CHOPPY”: (Ruth Mantell, “Leading Economic Indicators Dip in April,”MarketWatch, 5/17/2012) 

CBS/NYT: 67% RATE CONDITION OF ECONOMY AS “VERY” OR “FAIRLY” BAD: (“The Presidential Election, Same-Sex Marriage, and the Economy,” The New York Times/CBS Poll,  5/14/2012)