Michigan Not Seeing Benefits of Stimulus Money

An out-of-work man holds a sign asking for a job in Holland, Mich.
The Michigan June unemployment rate was 13.2 percent. Thursday President Obama climbed into an electric car hoping to prove his stimulus program is a jolt to job creation, reports CBS News correspondent Cynthia Bowers. He announced the second battery factory being built here with federal stimulus money.

"This is about more than just building a new factory," said Mr. Obama. "It's about building a better future for this city, this state and this country."

So far nearly $500 million in stimulus money have been pumped into the local economy but people here say: You've shown us the money, now show us the jobs.

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Local business owner Becky Dewind got $94,000 federal dollars to help develop new machinery but the excavating work it's designed for never materialized so she's added no new hires.

"I haven't had one job in one of my divisions in all of 2010," said Dewind. She joined Tea Party members today to call out the government for trying to create jobs with borrowed money.

Just a few blocks away, Randy and Dave Hammons also held signs. Theirs were of desperation, asking for work from passing motorists. They said they've been out of work two-and-a-half years.

Despite all the talk of stimulus money there's continued frustration on main streets like in Holland, Mich., where the unemployment rate has jumped from just under 6 percent in 2007 to nearly 12 percent today.

At the local candy store owner Tom Fabiano is doing OK but worries about everyone else.

"My biggest frustration is how we went to where we were 10 years ago to where we are now," said Fabiano.

The ground-breaking visited by Mr. Obama is supposed to bring jobs for the future but people here need work now.