The View From 1776
Wednesday, August 05, 2009
Is Making Al Gore Happy Worth Losing Jobs?
Federal Energy Information Agency report predicts continual erosion of jobs as President Obama’s cap-and-trade bill raises energy costs from now and on into the future.
The Democrat-controlled House narrowly passed its climate change bill on a 219-212 vote June 26. A week later, Mr. Obama told chief executives that the legislation “holds the promise of millions of new jobs—jobs, by the way, that can’t be outsourced.”
Mr. Chu repeated the assertion Tuesday.
But a chart in the [Energy Department’s Energy Information Administration] report showed the employment rate—just like the economy as a whole—worsening for the first several years, improving slightly in the midterm, peaking in 2024 and then declining steadily. It showed 0.25 percent fewer jobs in 2030 under the Democrats’ bill, with the manufacturing sector suffering a 2.5 percent lag.
For the economy as a whole, immediate energy price spikes would be followed by relative calm as the economy adjusted. But when stricter rules go into effect in 2025 “the rapid increase in energy prices causes the economy to contract,” [Energy Information Administration] said.