Options
Obama's Green-Jobs Fantasies
· Wednesday, March 9, 2011
Anyone who understands basic economics already knows that President Obama's $2.3 billion green-jobs initiative was snake oil. Now, thanks to Kenneth P. Green, we have statistics as well as theory to prove it.
In a new article, "The Myth of Green Energy Jobs: The European Experience," the environmental scientist and a resident scholar at the American Enterprise Institute writes, "Green programs in Spain destroyed 2.2 jobs for every green job created, while the capital needed for one green job in Italy could create almost five jobs in the general economy."
Ironically, Obama boasts his initiative "will help close the clean-energy gap between America and other nations." But Green says, "(C)ountries are cutting these programs because they realize they aren't sustainable and they are obscenely expensive."
Obama claims that if we "invest" more, "the transition to clean energy has the potential to grow our economy and create millions of jobs -- but only if we accelerate that transition."
What could make more sense? A little push from the smart politicians and -- voila! -- we can have an abundance of new good-paying jobs and a cleaner, sustainable environment. It's the ultimate twofer.
Except it's an illusion, as economic logic demonstrates.
"It is well understood, among economists, that governments do not 'create' jobs," Green writes. "The willingness of entrepreneurs to invest their capital, paired with consumer demand for goods and services, does that. All the government can do is subsidize some industries while jacking up costs for others. In the green case, it is destroying jobs in the conventional energy sector -- and most likely in other industrial sectors -- through taxes and subsidies to new green companies that will use taxpayer dollars to undercut the competition. The subsidized jobs 'created' are, by definition, less efficient uses of capital than market-created jobs."
Green is using good, solid economic thinking. Many years ago, Henry Hazlitt wrote in his bestseller, "Economics in One Lesson," "The art of economics consists in looking not merely at the immediate but at the longer effects of any act or policy; it consists in tracing the consequences of that policy not merely for one group but for all groups."
In judging any government initiative, such as Obama's green-jobs plan, you can't look just at the credit side of ledger because the government is unable to give without first taking away.
Worse than that: Inevitably, more is taken away -- destroyed -- than is given because the government substitutes force and taxation for consent and free exchange. Instead of a process driven by consumer preferences, we get one imposed by politicians' grand social designs. It's what F.A. Hayek called "the fatal conceit."
So we shouldn't be surprised that green-jobs programs make energy more expensive. "(F)orcing green energy on the market (is) much, much more expensive," Green said. "Using Spain as a model, when you do the math, you realize that creating 3 million new green jobs could cost $2.25 trillion."
Of course, many people who push "green jobs" want the price of energy to rise so we'll use less. If the environmental lobby wants Americans to be poorer, it ought to come clean about that.
The advocates of such programs don't just misunderstand economics. They have lapsed into a pre-economic mentality. Rulers once believed they could do whatever they wanted, subject only to the physical laws of nature. If things didn't work out as planned, it was because the people had failed to cooperate. But as economist Ludwig von Mises wrote, once economics emerged as an intellectual discipline, "it was learned that in the social realm too there is something operative which power and force are unable to alter and to which they must adjust themselves if they hope to achieve success ... ."
That "something" is inescapable economic forces like the law of supply and demand.
Green is right when he says, "Central planners in the United States trying to promote green industry will fare no better (than Europe) at creating jobs or stimulating the economy."
COPYRIGHT 2011 BY JFS PRODUCTIONS, INC.
DISTRIBUTED BY CREATORS.COM
Third-party content does not necessarily reflect the opinions of The Patriot Post.
Options
Subscribe
Howard Baker, Ronald Reagan's White House Chief of Staff, comments on The Patriot Post: "Thank you for your confidence in, and efforts to sustain the Reagan legacy." It's Right. It's Free. Subscribe now!
The Right Opinion
- Peggy Noonan: Mitt Romney's Moment
- Argus Hamilton: From The Comedy Store
- Burt Prelutsky: Time to Start Playing Offense
- Rich Galen: Obama & Romney Tout Good News
- Edwin J. Feulner: 'Law of the Sea' Treaty: Sink It
- Arnold Ahlert: With Democrats, You're Either All In - or All Out
- Oliver North: Memorial Day 2012
- Ken Blackwell: Remarks on Religious Liberty
- L. Brent Bozell: Canada's 'Scientific' Museum of Smut
- Michelle Malkin: Obama's Land of the LOST
- Rebecca Hagelin: The 'Gay Marriage' Spin
- David Limbaugh: Obama and Leahy vs. Sir William Blackstone
Grassroots Commentary
Policy and Analysis
- Heritage Foundation Insider
- Heritage Foundation Research
- American Enterprise Institute
- Center for Strategic and International Studies
- The Cato Institute
- Hoover Institution
- National Rifle Association
- Ludwig von Mises Institute
- Citizens Against Government Waste
- National Center for Policy Analysis
- The Heartland Institute
Our Mission
"The Patriot's mission is to advocate for Essential Liberty, the restoration of constitutional limits on government and the judiciary, and to promote free enterprise, national defense and traditional American values. Our objective is to provide Patriots across our nation with a touchstone of First Principles through brief, informative and entertaining analyses of relevant news, policy and opinion from reputable research, advocacy and media organizations, so they may better support and defend those Principles, and enlist others to join our ranks." —Mark Alexander, Publisher
The Patriot Post is not sustained by any political, special interest or parent organization, and we accept no advertising. Our mission and operations are funded entirely by the voluntary financial support of Patriots like you!
























Howard
We've ALWAYS HAD the statistics to prove it is a fantasy - as far as a sound financial and energy policy.
But the reality is, the usurper in our white house will ENSURE that countless more billions continue to be squandered in worthless investment. This will allow him to once again capture the vote of the fools who elected him on more false promises of jobs and prosperity - at everyone's actual expense - even as he enriches himself by relentlessly looting the nation.
Posted March 9, 2011 at 8:08:35 AM
Howard Last
The only way the green energy nonsense makes sense would be if several of the laws of thermodynamics were repealed and the gravitational constant was reduced. Anyone know how we can go about doing this? Also does anyone know why my perpetual motion machine stops working as soon as it is started?
Posted March 9, 2011 at 11:14:25 AM
Jennie
Howard Last-I don't know why your machine won't work, but I'm sure if Obama throws enough government money at it, it will!
Posted March 9, 2011 at 11:55:26 AM
Anne
Why is it that we're not really pushing hard enough for drilling? There has to be someone somewhere that can see the common sense of putting thousands of people to work and getting away from the Mideast oil at the same time. If I only knew who to talk to!
Posted March 9, 2011 at 12:00:12 PM
Richard Ryan
John: A brilliant piece.Unfortunately it will not sway the pretender-in-chief.Mr.Ofarce is dead set on making us as European as he possibly can.When your chief credentials are graduating from one of our communist infested universities and then working as a neighborhood rabble rouser it`s wishful thinking to hope for any kind of sensible leadership.
Richard Ryan
Lamar,Missouri (Birthplace of Harry S Truman)
Posted March 9, 2011 at 12:12:12 PM
Bill
Come now folks! The University of Oregon has plugged treadmills and stationary bikes at the student gym into the power grid. Students are now contributing to a green energy source as though they were beasts of burden harnessed to a gristmill. At last, hamsters with a purpose!! No studies yet on the carbon footprint eminating from the campus.
Posted March 9, 2011 at 2:45:14 PM
MichaelSSEC
This is a fundamental problem with the Left. They simply cannot divorce their grand intentions from the realities of life. They mean well, therefore their projects must be tried.
Jay Richards calls it the Piety Fallacy. He cites an example of a celebrity urging people to donate money to an international charity. "We've got to try something, even if it doesn't work." But as Richards points out, doing nothing and succeeding are not mutually exhaustive possibilities. Our efforts could also make the problem worse, even MUCH worse. We must be careful about what we try and don't try, especially as regards the unintended consequences of our actions.
The Left and their green push never take unintended consequences into account. Obama said so himself on the campaign trail when he admitted that under his Cap & Trade scheme "electricity costs would necessarily skyrocket." That admission was so blisteringly foolish that it ought to have cost him the election, but the ever-helpful media rescued him from the folly of his own words. The admission reveals his total lack of concern for the side-effects of his policies -- and the effect those policies have on ordinary working people. It's the same way all over the Left.
Their propaganda on these issues is good, and they control virtually all the media, educational system and entertainment sectors -- so their propaganda gets heard everywhere, all day long. The only conceivable way to counteract it is to hammer the logic, facts and reality home at every opportunity. That's what John Stossel does here, and he does it well.
Posted March 9, 2011 at 4:05:19 PM
Jody
@MichaelSSEC ~ "They mean well, therefore their projects must be tried." You forgot to add, "and if they fail, it can only possibly mean that we didn't throw enough money at them."
The Left will not only refuse to admit that an idea failed (at least opening the door to try something else,) they refuse to admit that their idea CAN fail, and insist that any resemblance to failure is entirely due to not spending enough money on the idea, and not having forced more of US to do what THEY say.
Posted March 9, 2011 at 4:24:10 PM
pete
Stoss, For years now we've been "urged" to use less of this and use less of that and generate less trash. For years we've quietly complied. And every time the bottom line decreased, the rates went up.
People were using less, utilities earned less, the taxes they paid fell, so what did our government do? They added "fees," "surcharges," "lifelines," "public emergency charges," and I don't know how many others. We (my family) uses, buy the meter, between 68 and 73% of what we used 28 years ago. Even with the family, kids, computers, high tech TV, and all the other "can't live without it" BS. We pay three times what we paid for utilities then. In addition to that, back then I could haul my own trash to the dump for the cost of gas. Now I'm forced to pay $56 per month for a city truck to come around and pick up my trash AFTER I've sorted it, and take it to the same dump. Should I find reason to haul anything to the dump - you know, things the city truck won't take, like an old dresser or bed - it costs me $150 to leave it. That's a flat rate charge. I can dump my crib or a whole household for the same price.
Tell me there's no collusion, greed or power trips going on there!
Posted March 9, 2011 at 5:10:14 PM
Roger
Those garbage guys don't need to be picked on--after
all they make only 65 to 100 K $ a year...... Shame !
Posted March 9, 2011 at 9:33:51 PM
Ol'Joe
Jennie: "I don't know why your (perpetual motion) machine won't work, but I'm sure if Obama throws enough government money at it, it will!"
Obama has a perpetual motion machine already; it's called the "welfare state". The taxpayers are the "perpetual" and his Democrat "machine" is the "motion".
Posted March 10, 2011 at 3:33:29 PM
carlos
Very interesting, I read all the comments, most were well thought out and to the point.
To me it looks like the country is divided between those who work and pay for a system that most of them do not support and the other side that desires a 'welfare state' the Uk tried that and we can see the result.
The division seems to be about 50/50 in the population. A ray of hope does exsist, the government has made such a mess of the country that many more people are looking at them, time to clean house and get some common sense back.
Posted April 1, 2011 at 12:38:39 AM