Stimulus Helped GE Modernize Its Plant

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Did anyone tell you when Congress passed the stimulus bill that it would go to refurbish General Electric's outdated plant? By now it is common knowledge that GE paid no federal taxes last year and received TARP funds. It none of the restrictions on executive pay that the banks had although it was treated as a bank. GE returned the favor by moving its jet engine and x-ray divisions to China. From the Department of Energy own web site;

GE has a long history in Louisville, Ky. 

The company's appliance and lighting facility in Louisville has been manufacturing appliances for more than 50 years. Like many facilities, it has seen its share of ups-and-downs.  Now, after a tough couple of years, the "Appliance Park" facility is making a "manufacturing" comeback -- with the help of the Recovery Act.

The plant retooling project, partially funded through a 48C Advanced Energy Manufacturing Tax Credit of $24.8 million, is expected to result in more than 800 jobs in the area by 2013.

"There's been a net loss of manufacturing jobs over the last ten years. This is having a huge impact on bringing some of those jobs back," says Earl Jones, senior counsel at GE. "There's a big need in this community for work."

Jones points to the ability to expand manufacturing and add new appliances to bring these jobs to Appliance Park.

Old building – modern manufacturing

The six, Louisville GE buildings - five of which are nearly one million square feet -  show signs of wear.  Much of the upgrade work will be spent on improving the interior and making a modern, efficient space inside the existing 1950s shell.

In normal times tax subsidies where tolerated as a necessary evil but Obama has taken to calling such things "spending through the tax code". So here by spending through the tax code the US taxpayers have given General Electric an almost brand new plant. Democrats will remark that sometime down the road it will create jobs but imagine if it was the DOE bragging about all the good things it had done for Halliburton.