Category Archives: News

News

Cap and trade will raise electricity prices and increase unemployment

Leave a comment
Representative Michele Bachmann
Representative Michele Bachmann

Michele Bachmann has a post on her blog about a new study by a Spanish economist regarding the cost of green job initiatives.

Excerpt:

A study directed by Dr. Gabriel Calzada, an economics professor at Juan Carlos University in Madrid, concluded that every “green job” created in Spain resulted in 2.2 other jobs being destroyed.

The study emphasized that only 10% of the “green jobs” created could be considered permanent – such as maintenance of renewable power systems. The remaining jobs consisted of temporary jobs in construction, fabrication and installation jobs; along with administrative positions, marketing, and engineering projects.

Spain has been providing subsidies to create green jobs, and this is viewed by some as a model for future US energy policy.

Bachmann continues:

“If U.S. subsidies to renewable producers achieve the same result — and President Obama has held Spain up as a model for how to subsidize renewables — the U.S. could lose 6.6 million to 11 million jobs while it creates three million largely temporary ‘green jobs.'”

Furthermore, Dr. Calzada stated that “the loss of jobs could be greater if you account for the amount of lost industry that moves out of the country due to higher energy prices.”

Thomas J. Pyle of the Institute for Energy Research adds:

“As this study makes clear, Spain has spent billions in taxpayer resources to subsidize renewable energy programs in an effort to jumpstart its ailing economy – and what they’ve gotten in return are fewer jobs, skyrocketing debt and some of the highest and most regressive energy prices in the developed world. Now, as U.S. policy-makers prepare to embark Americans upon a similar course, this report offers our first realistic glimpse into what we should expect in return for that unprecedented sacrifice of public resources and personal autonomy.”

The IER has a list of the key findings from the study in that post.

Ed Morrissey at Hot Air adds:

Why did the jobs disappear?  In part because of the higher capital confiscation of the government, and in part because the green policies pushed industry out of Spain. Actually, the study didn’t count jobs lost through “industrial relocation”, which in this case amounts to capital flight.  The largest stainless-steel producer in Spain directly linked its decision to move operations to South America to the higher energy costs imposed by the government.

In the US, we could see a massive flight, and not just in manufacturing.  High-tech industries that rely on cheap energy could be forced to find less expensive environments. Bloomberg’s economist notes that Microsoft and Google have already relocated their servers once to get cheaper energy.  The Internet is flexible enough to allow employers to go almost anywhere in the world to host their servers, and in this economy, there will be plenty of competition for them.

In a related post, Gateway Pundit notes that the cap and trade policies of the Democrats will also cause consumer electricity prices to soar.

Excerpt:

Democrats know that their cap and trade energy policies will devastate the economy.

…Cap and trade policies would likely cost American families $700 to $1,400 dollars per family per year according to the video above. The Department of Energy estimated GDP losses would be between $444 billion and $1.308 trillion over the 21-year period. Cap and trade also could cost the US 4 million jobs. In Missouri and the Midwest where energy is “cheap” it would cause electricity rates to double.

And, it would likely do nothing to help with the make-believe global warming junk science.

And GP also links to this video showing what we can expect from the Democrats on this issue:

Further study

I posted a list a while back of the expected increases in electricity prices, broken down by state, here. More about the impact on consumers from John Boehner is here.

More about the rise in unemployment we can expect from green jobs initiatives is here. Info about Obama’s tax hikes on energy producers is here. Information about possible carbon tariffs is here.

Information about the recent Cato statement of 700 scientists who dissent from man-made global warming is here.

News

Colombia hosts international banking conference and signs free trade deals

Leave a comment

This story has two parts. First of all, take a look at this IBD article that explains how the USA was able to transition Colombia’s economy away from drug-trafficking with a plan called “Plan Colombia”. The Democrats deserve all the credit for this plan, because it was initiated by Clinton and supported by Joe Biden. It has been a huge foreign policy victory for the USA.

Let’s take a look:

…Colombia is no longer the narco-trafficking hellhole it once was, but a bright Latin American success story.

Plan Colombia not only went after traffickers, but also root causes of conflict, professionalizing the military and offering the population alternatives to trafficking.

IBD is hoping that the lessons we learned in Colombia can be applied in other places like Mexico and and Afghanistan, where similar drug-related problems abound. But wait! All is not well. For Obama has decided to undermine Plan Colombia by reneging on the last step of the plan. Obama is refusing to sign a free trade deal with Colombia!

But we don’t see how the reality of victory can truly be achieved so long as Congressional Democrats undermine the final step in Plan Colombia’s victory plan, which is free trade with the U.S.

It’s the last step in the process of offering an alternative development path, over drugs and terror. Protectionist Democrats in Congress, in hock to Big Labor cash, still refuse to allow even a vote.

That’s right. After all this work on Plan Colombia, we are about to throw away all the fruits of our labor by refusing to allowing American companies to sell to Colombia, and allowing American taxpayers to buy cheaper, higher quality Colombian goods. Free trade is good for us, good for them, and good for world peace. But I guess it’s not good for Obama’s special interest groups.

And this has implications for Afghanistan, a country desperately trying to break away from an economy based on drug-trafficking:

Worse, it has potential to undercut victory in Afghanistan. Afghanis can see how hard Colombians worked with Americans to make Plan Colombia succeed. They can see how the program addressed not only military tasks, but social ones, which end in free and legal trade with the vast U.S. market.

…For Colombia, the promise was the free trade that Democrats are now reneging on. Democrats are snatching defeat from the jaws of a victory they could claim as their own and extend to Afghanistan. All they have to do is keep their promises.

But Colombia isn’t about to take this garbage from the President-Teleprompter. They’re going to fight back! Check out this IBD article that explains what Colombia is trying to do to avoid rolling back all the progress they’ve made against the drug traffickers. They’ve hosted an international conference of bankers to try to diversify their economy.

Excerpt:

Colombia asserted itself on the international stage last week, with the 50th annual governors’ meeting of the Inter-American Development Bank in Medellin. Some 6,000 bankers and businesspeople came.

…Corporate titans from Brazil, Spain, Japan, China and Germany were present along with the bankers, having invested $8.5 billion in Colombia in 2008.

But wait! One country barely even showed up! Which one? It’s the country that angers the world by opposing free trade. The country that was warned about its ignorant and destructive economic policies by former communist basket-cases like China and Russia. Who is it?

Let’s see:

A few U.S. executives were present too, but the Americans seemed overshadowed by the others.

It isn’t surprising, because Colombia is rapidly moving to diversify its trading partners, signing deals with China, Japan, Korea, the European Union, Canada and Central America, following Chile’s model of signing free-trade deals with all comers.

The U.S., with its Colombia free-trade agreement still on ice in Congress, was the only country that looked isolated and out of tune with the world without its pact.

But the IBD article does end on a hopeful note: there are signs that the free trade deal may be back on the table. We can only hope.

Further study

This previous post I wrote links to an article by economist Robert P. Murphy, published by the Institute for Energy Research. The article warns about the dangers of carbon tariffs and the benefits of free trade. I highly recommend it to those who do not understand whyy free trade matters for our economic growth and prosperity. And that includes jobs.

News

Obama cuts military spending, blinks at North Korean aggression

2 Comments

You knew that the socialist ACORN lawyer was going to cut military spending at some point. Well, he’s done it.

Sweetness and Light reports on the cuts in military spending here. (H/T Gateway Pundit)

Excerpt from an AP article:

Production of the F-22 fighter jet, which cost $140 million apiece, would be halted at 187.

…The Army’s $160 billion Future Combat Systems modernization program would lose its armored vehicles. Plans to build a shield to defend against missile attacks by rogue states would also be scaled back…

See, the thing you need to understand is that wars start when aggressors believe they can win the war. When you build up your own military, aggressors start to understand that victory may not be so easy. That’s how you prevent wars from even starting. This is called peace through strength.

So, by cutting defense spending, Obama is basically emboldening aggressors. Not just aggression against us, but aggression against our allies. If our enemies do not believe that we have the will or the firepower to defend our interests, and those of our allies, abroad, then they will act against our interests. The North Korean missile launch is just the beginning.

Closing Velocity had some more details on the missile defense cuts. (H/T Hot Air)

  • Total cuts in missile defense: $1.4 billion or roughly 15%.
  • Cancel second Airborne Laser (ABL) aircraft, keep the one remaining ABL prototype as a testbed and revert to pure R&D.
  • No increases in Ground-based Interceptor (GBI) deployment in Alaska. Remaining silos will stay unfilled. European GBIs will be decided on later during the Quadrennial Defense Review (QDR).
  • Termination of the Multiple Kill Vehicle (MKV) program.

    • Hot Air linked to this Politico article, featuring comments by Newt Gingrich.

    Excerpt:

    “Dick Cheney is clearly right in saying that between the court decisions about terrorists and the administration actions, the United States is running greater risks of getting attacked than we were under President Bush,” said the former speaker of the House and Georgia congressman.

    On the North Korean missile launch, he said “the embarrassing repudiation of the United States appeal to the United Nations Security Council Sunday afternoon is a vivid demonstration of weakness. This is beginning to resemble the Carter administration’s weakness in foreign policy.”

    He said Obama’s speech on nuclear disarmament in Prague on Sunday “is a dangerous fantasy that runs an enormous risk. It is part of the Obama administration’s substitution of words for thoughts and fantasies for achievements.”

    “Now we no longer have a ‘global war on terror,’” Gingrich said. “We have ‘overseas contingency operations’ Now we will no longer have ‘terrorist attacks.’ We will have ‘man-made disasters.’ None of our enemies seem to have learned this new language.”

    “There was amazing symbolism in North Korea deciding to launch a missile the very day President Obama was speaking to Europeans about his fantasy of nuclear disarmament. The West has talked with North Korea for over 15 years and they just keep building nuclear weapons and missiles. We have been talking with the Iranians for a decade and they continue to build nuclear capability and missiles.

    “Pakistan has a lot of nuclear weapons. Russia, India and China have nuclear weapons. Hamas in Gaza fires missiles into Israel virtually every day. In this reality, our president proposes we have a big meeting in Washington to discuss nuclear disarmament.”

    And he contrasts Obama’s plan with Ronald Reagan’s policy.

    “Reagan felt that keeping a defensive shield alive was more important than a paper deal. The Obama administration is rapidly undermining our missile defense system while describing a fantasy world of trust and cooperation.”

    Here is  a related quotation from Ronald Reagan’s debate against the 2nd worst president ever, Jimmy Carter.

    And I’m only here to tell you that I believe with all my heart that our first priority must be world peace, and that use of force is always and only a last resort, when everything else has failed, and then only with regard to our national security. Now, I believe, also, that this meeting this mission, this responsibility for preserving the peace, which I believe is a responsibility peculiar to our country, and that we cannot shirk our responsibility as a leader of the free world because we’re the only ones that can do it. Therefore, the burden of maintaining the peace falls on us. And to maintain that peace requires strength. America has never gotten in a war because we were too strong.

    Ronald Reagan’s focus on strength projected abroad ended the cold war without firing a shot. And military spending is vital for achieving peace. But Obama is choosing a different path… the path of Jimmy Carter. And we all know where that ended.

    UPDATE: More on the NK missile launch, including Gingrich video on Fox News Sunday at Nice Deb.

    UPDATE: A new post on the effectiveness of waterboarding and Obama’s intent to prosecute the authors of counter-terrorism policies, possible including George W. Bush himself.