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Follow the Stimulus, Part 2: Stoves in Davenport, Iowa

May 29, 2009 7:33 AM

On the blog and this morning on Good Morning America we took a look at some stimulus overhype –- a project heralded in the White House’s new “100 Days, 100 Projects” report that is not quite what it seems.

Here’s another one that is more complex than the simple idea that the stimulus bill is creating jobs or, as Vice President Biden writes in the report, that the White House is “using the Recovery Act to jump-start our economy today, while building a new foundation for the sustained economic growth of tomorrow.”

Project #55 in the report states that: “With the help of Recovery Act funding, Zeglin’s Home TV & Appliance, a locally-owned and operated company, is currently replacing stoves in Public Housing units in Davenport, Iowa, with American-made Whirlpool appliances.”

The reality:  Zeglins TV & Appliance, Inc. in Davenport, recently placed an order for 160 stoves and refrigerators for public housing.

The order “is certainly helping an independent businessman like myself keep making payroll,” owner Jeff Zeglin told ABC News.

But... this was a project that had already been approved by Davenport city council to be paid for by federal monies, Margaret Murphy the Assisted Housing Manager for the city, tells ABC News.

When the stimulus bill passed, some astute city workers realized they could have some of that order paid for by the stimulus because of the American steel used in the stoves.

So the city of Davenport submitted $13,000 for 42 stoves (and installation) paid for by the stimulus.

The point is: those stoves would have been purchased and installed anyway.

Where the impact of this may be that the $13,000 in non-stimulus federal funds can now pay for something else in Davenport. Perhaps something stimulative. Perhaps not.

But again, not everything is as it seems.

This project was going to happen anyway.

Here's our GMA report:

-- jpt

May 29, 2009 | Permalink | Share | User Comments (90)

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Every wave has an under current.The President is still cresting; he can get in front of the teleprompter and sell his story without the mainstream press offering any objections.

The tide is already changing - pretty soon someone is going to say "the Emperor has no clothes."

My guess is this whole agenda is suspect even to the faithful. Too much goverment, too much spending and too little results. The thing about politics is that just as quick as you think you have blue skies it clouds up and you have flood conditions.

Posted by: Lone Star Rules | May 31, 2009 10:32:21 AM

Every wave has an under current. We are still at the peak of the Obama wave. He can get in front of a telepromter and sell the faithful pretty much anything.

Turns out there are some real holes in the facts and they are starting to get traction. Obama's spin machine is having a hard time twisting things in their favor; even the faithful are having a hard time swallowing what they are feeding them. It all worked when they had Bush to bash as the alternative but that is fading - now it is Obama, his agenda and the results.

When they have to reach that far tells me that they know at some point someone is going to say "the emperor has no clothes."

Posted by: Lone Star Rules | May 31, 2009 10:27:16 AM

Jake Tapper is one of the few mainstream media reporters that I actually trust these days.

Good work Jake. Keep asking questions ... please!

Posted by: someone new | May 29, 2009 7:11:12 PM

Pardon me . . . I low balled the Rumsfeld 'lost' money figure . ..

(CBS) On Sept. 10, Secretary of Defense Donald Rumsfeld admitted, "according to some estimates we cannot track $2.3 trillion in transactions."

$2.3 trillion in unaccounted for funds under the Bush/Cheney/Rumsfeld watch.

And President Obama is catching heat over 42 home stoves.

Interesting.

Posted by: danita | May 29, 2009 6:45:19 PM

Paul . .. .

Rumsfeld 'lost' 3 billion dollars at the Pentagon . ... simply couldn't account for it. Millions and millions of dollars went 'missing' in Iraq. Halliburton (Cheney's old corporation) received billions of dollars in single source contracts. Try to get some perspective on domestic stove/ovens for public housing.

Your hard work was pissed away by the billions by the Bush administration . .. irresponsibly 'lost' or doled out to corporate 'buddies' by the millions . . .

Posted by: danita | May 29, 2009 6:34:22 PM

If you want some stimulus money, you should move to Congressman John Murthas district of Pennsylvania. He just loves to give our money to anyone who is a voter of his with no accountability at all, just a few bucks kicked back to his re election bid.

Posted by: jim 234 | May 29, 2009 6:06:31 PM

The workers who don't live in public housing or work for the UAW are paying to subsidize both groups..

Posted by: DontGet818OnMeNow | May 29, 2009 4:08:25 PM

I'm grateful that I can live in a country where I work 50 hours a week to pay for someone else's new stove, and then come home each night to my own broken stove that I can't afford to replace.

Posted by: paul | May 29, 2009 3:07:55 PM

President Obama asked that the media double-check government facts and figures and invited the media to help keep the processes on the level.

It's good that Tapper is doing that.

Imagine counting and worrying over 42 domestic stoves after the billions passed out the Bush White House to Halliburton in single source contracts and the millions unaccounted for in Iraq. What about the several billion dollars Rumsfeld 'misplaced' in the Pentagon.

Things appear to have improved.

Posted by: danita | May 29, 2009 2:54:30 PM

Haven't spent 7% of the first round......but lets hurry before someone asks to see the second, okay?
God save us from this IDIOT!!

Posted by: American Infidel | May 29, 2009 2:28:57 PM

We should have just let recission run it path, which it is doing. Stop the stimulus money now.

Posted by: Jane | May 29, 2009 2:16:32 PM

What I say is more important than what I do. Right?

Posted by: deanbob | May 29, 2009 1:49:03 PM

Obama blatantly lies and grabs credit for everything because most Americans are dumb enough to believe him.

BO seems to believe he is immune to backlash and above any kind of rules.

And why shouldn't he be delusional he has most of the MSM to cover for him and a base would follow him off a cliff.
Kool-aid drinkers.

Posted by: tyler | May 29, 2009 12:31:28 PM

Axey:"There was no tax rate reduction. "

No there wasn't. But there was a tax credit given, so the reduced weekly withholding does not have to be paid back come April as you absurdly claimed.

Posted by: jhw539 | May 29, 2009 12:11:20 PM

And may I second the wish that Jake look into the matter and report on it? That way, more people won't be surprised when the tax cut wasn't really a tax cut.

Posted by: Axey | May 29, 2009 12:10:38 PM

=== I'm not sure if it's a Big Lie campaign or sincere ignorance.

Posted by: jhw539 | May 29, 2009 12:01:07 PM===

I'm really through with this issue unless Jake does an actual blog about it. But I assure you, I am right on this one. There was no tax rate reduction.

Posted by: Axey | May 29, 2009 12:07:55 PM

Axey:"In the meantime, talk to someone, HR, an accountant, just make sure you don't come up short next April."

Please Jake, just a short blog on this. This is insane - Obama is beat up over his stimulus plan cost at the same time you have right wingers denying the very existence of the largest single cost in it? Please...

Posted by: jhw539 | May 29, 2009 12:02:39 PM

Axey:"The $800 is for joint filers. If you have 2 jobs and both jobs are reducing the amount withheld to equal the $800, you are in a world of hurt. "

Joint filers or head of household. And if you have 2 jobs and are on default withholding, you already have issues.

As a side note, the tax credit is phased out for those earning over $70k - this is the vaugely rational, "its not fair," argument I've hear from conservatives. The right wing display of ignorance here, denying the existence of the tax credit payments entirely, is baffling. I'm not sure if it's a Big Lie campaign or sincere ignorance.

Posted by: jhw539 | May 29, 2009 12:01:07 PM

===What part of $800 tax credit do you not understand?

Posted by: jhw539 | May 29, 2009 11:56:59 AM===

I do understand it. You don't. But one thing is for sure, this is something that will be proven one way or the other come next tax day. I'll check back in Jake's to see if you have seen the light. In the meantime, talk to someone, HR, an accountant, just make sure you don't come up short next April.

Posted by: Axey | May 29, 2009 11:58:46 AM

Axey:"What part of a reduction in withholding are you not understanding? Your tax obligation remains the same."

What part of $800 tax credit do you not understand?

Posted by: jhw539 | May 29, 2009 11:56:59 AM

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