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Obama Turns to Economy in Ohio to Highlight Administration’s Stimulus Jobs

February 26, 2011

By Kate Andersen Brower and Roger Runningen June 18 (Bloomberg) — President Barack Obama pivoted from the Gulf of Mexico oil spill back to the economy today with an emphasis on the jobs created by his administration’s $862 billion economic stimulus package. At a groundbreaking in Columbus, Ohio, for the 10,000th road project funded by the stimulus, Obama said improving the nation’s infrastructure is one of the keys to long-term prosperity. “If we’re going to rebuild America’s economy, then we’ve got to rebuild America, period, from the ports and the airways that ship our goods, to the roads and transit systems that move our workers and connect cities and businesses,” Obama said at the project site near the Nationwide Children’s Hospital . The president is seeking to remind voters of his efforts to revive the economy five months ahead November’s midterm elections. Republicans have criticized the stimulus legislation as a wasteful spending program that hasn’t fulfilled the administration’s promises on job creation. Unemployment in Ohio is 10.7 percent, one percentage point higher than the national average. While the Federal Reserve’s regional business survey showed last week that the economy expanded in all the central bank’s districts in April and May for the first time in more than two years, job growth has lagged. Initial jobless claims increased by 12,000 to 472,000 in the week ended June 12, Labor Department figures showed yesterday. ‘Summer of Recovery’ “The economy is still lousy,” Transportation Secretary Ray LaHood told reporters before today’s trip. “We want to put the message out: This is going to be the summer of recovery.” LaHood, who traveled with the president to Ohio, said the project being highlighted today is expected to create more than 300 new jobs and is one of 462 transportation projects in Ohio funded by $1.1 billion in stimulus money. The work being done under the stimulus will “pay dividends to our communities for generations to come,” Obama said. “While the recovery may start with projects like this it can’t end here.” In a report to the president released yesterday, Vice President Joe Biden said the government has spent $620 billion from the stimulus and created or saved between 2.2 million and 2.8 million jobs. He predicted jobs created or retained by the end of 2010 will number “at least” 3.5 million. Republican Critics “We have created over 17,000 jobs in the last month” in Ohio, Republican state auditor Mary Taylor , a candidate for lieutenant governor, told reporters on a conference call today before Obama arrived. “But it’s an important fact to note that 16,800 of those jobs created were government jobs.” The White House is kicking off a six-week focus on scores of public works projects under way across the nation and into the election season. “This summer a lot more people are going to be working on highways, building clean water projects, weatherizing homes, and — and they’ll be drawing paychecks that they wouldn’t have otherwise drawn,” Biden said at a briefing yesterday that was part of the administration’s focus on the stimulus. The economy will be a top issue in the November elections that will determine which party controls the House and Senate. The Columbus area is represented in the House by freshman Democrat Mary Jo Kilroy . She was elected in 2008, the first Democrat to represent the district since 1982, according to the Almanac of American Politics. The non-partisan Cook Political Report rates her race against Republican former state Senator Steve Stivers as a toss-up. “There’s a feeling of disenchantment, disillusionment, discouragement — a feeling that no politician is going to be able to do much to turn the situation around,” Paul Beck , a political science professor at Ohio State University in Columbus, said of voter sentiment in the state. “Until the private sector really turns around you’re not going to have a big surge of jobs,” said Beck. Still, Beck said, “the stimulus money has been very important to Ohio, it’s prevented wrenching cutbacks in Ohio.” To contact the reporters on this story: Kate Andersen Brower in Columbus, Ohio at kandersen7@bloomberg.net ; Roger Runningen in Washington at rrunningen@bloomberg.net

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Texas Congressman’s Apology to BP is Denounced by His Fellow Republicans

February 26, 2011

By Lisa Lerer and Patrick O’Connor June 18 (Bloomberg) — U.S. Representative Joe Barton may be the only person who had a worse day on Capitol Hill yesterday than BP Plc Chief Executive Officer Tony Hayward . The Texas Republican sparked a political backlash from both parties when he apologized to Hayward — at a hearing where other lawmakers lined up to berate BP — and accused the White House of a “shakedown” by pressuring BP to set aside $20 billion for damage claims from the Gulf of Mexico oil spill. Barton retracted his comments hours later after a meeting with House Minority Leader John Boehner , an Ohio Republican, and House Minority Whip Eric Cantor , a Virginia Republican. The party leaders told Barton to apologize immediately or lose his position as ranking Republican on the Energy and Commerce Committee , said a party leadership aide who spoke on condition of anonymity. The outcry illustrates Republicans’ difficulty in gaining political ground, even during a low period for President Barack Obama , as the party struggles to conquer internal divisions, said Julian Zelizer , a political science professor at Princeton University in New Jersey. Message Discord “The Republican Party is not totally united on what its message should be,” Zelizer said in an interview yesterday. “It’s the Tea Party-versus-leadership tension that we’ve seen on other issues.” The flap began at a hearing by the Energy and Commerce panel on the Gulf of Mexico spill. Lawmakers denounced Hayward for hours, accusing him of stonewalling and failing to provide answers about the causes of the explosion. Barton, though, at the hearing’s beginning apologized to Hayward. The congressman described the claims fund BP agreed to establish after its top officials met with Obama on June 16 as “a $20 billion shakedown.” “I’m ashamed of what happened in the White House,” Barton, 60, told Hayward at the hearing, and later said, “I apologize” for it. Less than six hours later, Boehner’s office released a statement by Barton in which he retracted his apology to BP and apologized “for using the term ‘shakedown.’” ‘Wrong’ Boehner’s office also issued a separate statement from the Republican leader, Cantor and Representative Mike Pence , an Indiana Republican, calling Barton’s statements at the hearing “wrong.” Barton’s statement said he regretted “the impact that my statement this morning implied that BP should not pay for the consequences of their decisions and actions in this incident.” The comments by Barton, who was first elected to his Dallas-area House seat in 1984, inflamed Gulf Coast Republicans, who are outraged at BP for failing to plug the leaking well. “I don’t think we need to be apologizing to British Petroleum,” said Florida Republican Senator George LeMieux . Representative Jeff Miller , a Florida Republican, said in a statement that Barton’s comments “call into question his judgment and ability to serve” in a leadership position on the Energy and Commerce Committee. Other fiscally conservative Republicans have criticized the BP agreement with the Obama administration. And Kentucky Republican Senate candidate Rand Paul today expressed sympathies for Barton in an interview with a radio station. “I have never liked the tone of the president when he said things or his administration says things like he is going to put the boot on the throat of BP,” he said on Lexington, Kentucky- based WVLK-AM. ‘Shakedown Politics’ Georgia Republican Representative Tom Price , in a statement yesterday, said Obama’s insistence on creating an escrow fund was an example of his administration “exerting its brand of Chicago-style shakedown politics.” Representative Michele Bachmann , a Minnesota Republican, criticized the idea of an escrow fund as a “redistribution-of- wealth” fund at a Heritage Foundation forum this week. Former Representative Dick Armey of Texas, a Republican and a leading funder of the Tea Party movement, said at a meeting this week with reporters that Obama lacked the constitutional authority to set up such a fund. ‘Risky’ “They’re trying to make an anti-Obama, anti-Democratic point out of this recent announcement, but I think it’s risky to Republicans,” said Zelizer. Employees of the oil and gas industry have been Barton’s largest source of campaign cash since 1989, giving him $1.4 million, according to the Center for Responsive Politics , a Washington-based research group. That’s more than any other House member has gotten from the industry. He has raised $100,470 from oil and gas industry employees for his 2010 re- election campaign. Democrats immediately seized on Barton’s statements, seeing an opportunity to score political points months before the November elections. “When people in the Gulf are suffering from actions taken by BP, Republicans in Congress are apologizing to BP,” House Speaker Nancy Pelosi told reporters, referring to the statements by Barton and Price. Jon Vogel, executive director of the Democratic Congressional Campaign Committee , used the comments in an e-mail fundraising appeal, telling supporters that their donations would “send an overwhelming message” that Republicans “shamelessly shill for their Big Oil backers.” Vice President Joe Biden called Barton’s remarks “incredibly insensitive, incredibly out-of-touch.” “There’s no shakedown,” the vice president said at a White House briefing. “It’s insisting on responsible conduct and a responsible response to something they caused.” To contact the reporters responsible for this story: Lisa Lerer at llerer@bloomberg.net ; Patrick O’Connor in Washington at Poconnor14@bloomberg.net

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From Fluor to Booms to Costner, BP Cleanup Means Some Clean Up

February 16, 2011

By Mark Drajem and Katarzyna Klimasinska June 18 (Bloomberg) — Michigan’s depressed economy nearly toppled Grand Rapids-based awning maker Prestige Products. In April, the company’s fortunes changed when executive Brian Rickel got a phone call from an old contact at BP Plc

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