Taxpayers are being told how great it is that they are giving money to the “green” cause.
A study published today from the International Policy Network (IPN) outlines the hidden costs of “green investments”. Subsidizing "green jobs" does not always protect our environment, but always drains resources. For instance, Obama’s fuel efficiency standards are economically burdensome. Emphasizing clean energy in the Recovery Act proved inefficient and is yet to save 700,000 jobs, as the Obama Administration said it would, or jumpstart the American economy. Subsidizing clean energy stops job growth and reduces overall economic productivity. ATR previously stated that “it is estimated that for every government mandated ‘green energy job’ created, 2.2 jobs in the private sector were prevented from being created”.
Obama’s “Buy American” provisions are part of the protectionist sentiment that is embedded throughout various studies of green jobs. Green job advocates tend to focus more on costs to producers than consumer, overlooking the benefits of international trade—specialization and cheaper goods. The IPN report cites a green job study which accuses US corn producers of undermining Mexican farmers (producers) by selling cheaper corn to the Mexican population. There is no talk about the benefits of cheaper corn to Mexican consumers. In short, Green jobs; rely on government subsidies to make them competitive in the market place.
For this study, IPN cross-examined so-called “green investments”. To do this they made a list of seven myths and underneath those myths they list the facts. To read the full study, click HERE.
Myth 1: Everyone understands what a “green job: is.
Fact 1: No standard definition of a “green job” is set.
Myth 3: Green jobs forecasts are reliable.
Fact 3: The green jobs studies estimates using poor economic models based on uncertain assumptions.
Myth 4: Green jobs promote employment growth.
Fact 4: The green jobs actually encourage low paying jobs in less desirable conditions because they promote more jobs instead of productivity.
Myth 5: The world economy can be remade by reducing trade and relying on local production and reduced consumption without dramatically decreasing out standard of living.
Fact 5: Learning from the past; history shoes that individual nations cannot product everything their people want or need. Every country possesses different talents that allow specialization in products and services which in turn lowers costs for producers and makes them more efficient.
Myth 6: Government mandates are a substitute for free markets.
Fact 6: Companies react more swiftly and efficiently to the demands of their customers/markets.
Myth 7: Wishing for technological progress is enough.
Fact 7: Some of the technologies that the green jobs studies want are not capable of efficiently reaching the scale necessary to meet today’s demands.
Our most faithful government has recently set plans for taxpayers’ money to be turned into “green investments”. As you know from the facts above, that would be a complete waste.