FACT CHECK: Stimulus assessments overly optimistic

Despite the lack of any tangible evidence, the Obama administration remains insistent that the deluge of stimulus money that is flowing out of the federal treasury, and consequently your pockets, is "transforming the American economy".

The latest example is a 50 page report unveiled by Vice President Biden on Tuesday that paints a rosy picture of the "transformation" that $100 billion federal dollars have had on innovative technologies in America. If we take the government at its word then there is certainly reason to be optimistic. A fact check done by the Associated Press, however, gives us reason to pause, take a closer look, and realize that our government is not above propaganda.

Parts of the AP's article is featured below. You can find the entire article here.

Increasing renewable energy

"The claim: Thanks to the stimulus, the United States is on track to "doubling U.S. renewable energy generation capacity and U.S. renewable manufacturing capacity by 2012."

The facts: While the Recovery Act has helped increase renewable energy, the fact that it is a one-time jolt makes it difficult to project that the growth will continue for the next couple of years. George Sterzinger, executive director of the Renewable Energy Policy Project, a Washington think tank that promotes renewable energy, said the Recovery Act's cash grant program for renewable energy projects "jump-started a lot of stuff. But there's nothing beyond that."

Sterzinger added that it would be a mistake to link the growth in renewable energy generation to the growth in American-made renewable energy equipment. While the U.S. could probably meet the first goal, he said, it isn't likely to meet the second because much of the equipment is made overseas.

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Cutting the cost of solar power

The claim: Government stimulus money will lead to "cutting the cost of solar power in half by 2015, putting it on par with the cost of retail electricity from the grid."

The facts: That projection assumes a huge payoff from stimulus spending on technology improvements in solar energy. Nelson, who has worked in renewable energy for 25 years, called the prediction "highly unlikely," unless there is a big increase in utility-scale solar power projects.

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High-speed rail

The claim: "With $8 billion in funding, the Recovery Act is beginning to make high-speed rail a reality across the country." Projects selected for funds represent "strategic investments" that will yield high-speed service or lay the groundwork for future service.

The facts: The largest project is one that would connect San Francisco with Los Angeles, using trains traveling up to 220 mph. But some of the projects getting stimulus money would primarily upgrade existing freight rail tracks so they could be used for faster passenger service, reaching speeds of up to 110 mph at least part of the time — well short of the speeds in other developed countries.

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Health information technology

The claim: Stimulus spending is "a significant boost" to goals of converting to electronic health records, computerized prescriptions and remote treatment of patients in hard-to-reach locations.

The facts: The effort to get doctors' offices and hospitals using electronic medical records is in its earliest stages. Economic dividends from greater efficiency and fewer costly medical mistakes could be years away.

And there's plenty of potential for glitches. People involved with the issue give the administration high marks for trying, but many do not expect Obama's goal of getting all of America's medical records computerized within five years to be met.

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Electric vehicles

The claim: The stimulus has helped produce "significant steps toward affordable electric cars that can drive 300 miles on a single charge, powered by $10 of clean electricity instead of $50 dollars of oil. Ultimately this means consumers may have the choice among a range of vehicles from a combustion vehicle with over 50 miles per gallon or an electric-drive vehicle for the same price."

The facts: While strides are being made, this vision of the future rests on assumptions that many regard as overly optimistic. Even a White House task force on the auto industry's recovery said while General Motors' extended-range plug-in hybrid, the Volt, "holds promise, it will likely be too expensive to be commercially successful in the short term." At $41,000, the Volt is about twice the price of a conventional midsize car. The price of electric cars will drop, but automakers are years from being able to sell them at the same price as cars with internal combustion engines."