Public+Policy+-+Economic+Consequences+of+Climate+Change+Policy


 * Economic Consequences of Climate Change Policy**

Jay Dee Izard

How Obama’s Greenhouse Policies Hurt the Economy

As soon as Obama was elected president of the United States, he inherited many problems. Not only did he have to deal with the ever declining economy, but he had to satisfy all that the Democratic Party had on their agenda. Once in office he implemented a stimulus package that was supposed to help deter the recession and start many new eco-friendly policies, that he said would not only create jobs but make the U.S. less dependent on other nations. Unfortunately, these policies are having an adverse affect on our economy. The stimulus bill that contains more than $70 billion in funding and $20 billion in tax incentives intended to develop, promote and support a green economy divides into $25 billion to improve the nation’s electricity grid and to improve efficiency in government buildings and low-cost housing, $10 billion toward research into renewable sources of electricity and automobile efficiency, $20 billion for public transportation and rail improvements, including the development of high-speed rail lines, nearly $10 billion for environmental cleanup projects and to support clean water access, especially in rural communities, and $6 billion for climate research and to promote the development of science and engineering jobs within the U.S.. Although the intentions are good to try and advance research in these fields, the outcome is uncertain. If the researchers don’t find ways of greener transportation this money was for nothing, when it could go to United states market and help there. With all the new green programs Obama said they would create jobs. In fact not only are many of the jobs temporary, but there are 14.7 million unemployed people and the unemployment rate is up to 9.5 percent. Since the start of the recession in December 2007, the number of unemployed persons has increased by 7.2 million, and the unemployment rate has risen by 4.6 percentage points. These numbers are the highest they have ever been. Looking at the evidence, the green jobs are not helping the job market. If there is less worker then there are less being produces. If the united states makes less then more has to be imported to mean demand. This will intensify our dependence of foreign nations. Obama wants to make new requirements for the nationwide standard for emissions of greenhouse gases. They require an average mileage standard of 39 miles per gallon for cars and 30 mpg for trucks by 2016 – a jump from the current average for all vehicles of 25 miles per gallon. These new standards sound good but really hurt the automobile industry. Right now many car dealer ships not only are closing down but are declaring bankruptcy. Once the new standards are implemented the dealers will not be able to afford it cost to manufacture these car and with either have to close down or go to another nation. The ones that survive and make these new cars will need parts. The parts they will need will have to come from China or another nation because the cost will be cheaper. So in fact we will become more dependent on other nations to help with our automobile industry. In many of these policies, they leave one major loop hole which is that foreign cars can still be traded to the U.S.. If these cars come to the U.S. not only will they be cheaper but it will not give the American automobiles a fighting chances in our market. When dealing with manufacturing companies, Obama not only wants to lower CO2 emissions, but regulate it. To be able to do this congress has stepped in. The House of Representatives passed the American Clean Energy and Security Act, a massive bill that is the first of its kind to seriously regulate greenhouse gas emissions. While the bill still needs to make it through a deeply divided Senate, it contains bold steps intended to address global warming. The will bill contain some version of the following provisions: Most notable is the cap-and-trade system, which allows companies who emit fewer greenhouse gasses (GHG) to swap with those who do, even as the net allowable limit shrinks from year to year. Eventually, the economic and legal incentives to shift away from GHG will turn industries away from their use, the bill requires the U.S. to reduce its GHG emissions to 83 percent below 2005 levels by 2050,several provisions within the 1,300-page bill are intended to steer public utilities toward the use of renewable energy, while others deal with improving the energy efficiency of buildings (the largest emitters of GHG in the U.S.),Taxpayers will bear some of the costs of this shift, but most provisions are not set to go into effect until 2012. One of the problems with this bill is that the supreme court needs to decide if this bill will allow the government too much control over business and free trade. With the new standards on each of our manufacturing companies they will need to find the money to meet the requirements. This burden is being placed upon already weak businesses that already has employment in manufacturing that have fallen by 136,000 over the month and has declined by 1.9 million during the recession. Within the durable goods industry, motor vehicles and parts fell 27,000, fabricated metal products fell 18,000, computer and electronic products fell 16,000, and machinery fell 14,000 continued to lose jobs in June. These new standards will be a death blow to our market. Soon it will cost too much to produce our own goods that it will become hard to export, forcing America to have to import more goods from other countries. By crippling our manufacturing plants we will be at the mercy of other counties for produces and material of our every day to day lives. President Obama wants to stray away from the dependence of natural gas. The U.S. imports and exports millions of gallons each year to and from other countries. By no longer needing oil for energy, Obama thinks that we will no longer need the help of other countries for energy. So he not only reversed a Bush administration decision to allow oil drilling near Arches and Canyonland National Parks and tabled, plans for offshore drilling, but plans on making wind mill farms, solar panels and other devices that will create energy. To pay for these new energy devisees he plans on raising taxes on oil and coal. With the economy the way it is, it now cost to much for many oil companies to produce oil. This slow down in production leads to more imports of oil from other countries to sustain our energy needs. Which once again leads Americans to be dependent on other countries. With all Obama’s stimulus plans and eco-friendly policies, someone has to pay for it. Right now China owns more than 70% of our debt, Canada over 10%, and some other counties picking up the rest, eventually we will have to pay them back. With such a low employment, crumbling industries, and a struggling oil refineries, how will we pay it back? If we owe billions of dollars to other nations with no way to pay it off, how independent are we? With no job market, no production, no money, we will be nothing but dependent on other nations if this trend keeps going.

WORK CITED

http://www.bls.gov/news.release/empsit.nr0.htm http://www.politico.com/news/stories/0509/22650.html#ixzz0L4uIv2VT&C http://earth911.com/blog/2009/07/06/green-progress-report-obama-at-five-months/ http://www.cbsnews.com/stories/2009/01/26/politics/100days/main4753112.shtml http://en.mercopress.com/2009/06/12/chinese-imports-in-may-dropped-25-and-exports-26