Today Congressional Democrats unveiled $825 billion in spending and tax cuts intended to stimulate the economy.
- Rep. Obey’s Summary of the Bill
- Text of the “Green Jobs” Stimulus Bill
- Discussion Draft of the Bill Report
The bill is partially based on studies which purport to show large numbers of jobs created by government spending on “green technology” such as energy efficiency and renewable energy projects. IER recently released a study demonstrating that the campaign to sell government ‘green jobs’ as a cure for our economic ills relies on misguided assumptions, unsound data, and false hope.
Among the key findings of IER’s Green Jobs: Fact or Fiction?:
- “[Obama’s green jobs plan] would likely increase consumer energy costs and the costs of a wide array of energy-intensive goods, slow GDP growth and ironically may yield no net job gains. More likely, [it] would result in net job losses.”
- “Although each report [in defense of ‘green jobs’] is unique, a common characteristic is that they all rest on incomplete economic analysis, and consequently greatly overstate the net benefits of their policy recommendations.”
- “[The Center for American Progress] estimates that this “fiscal stimulus” will result in the creation of two million jobs. Yet the CAP methodology treats the $100 billion as manna from heaven; it does not consider the direct and indirect adverse effects (including job destruction) of imposing higher costs on a wide array of energy-intensive industries and thereby raising prices for consumers.”
- “The government doesn’t create wealth simply by taking $100 billion from one group of firms and handing it over to a different group …”
- “After broadly defining the renewable industry, the Council of Mayors study goes on to paint a picture of expanding markets that can only grow further. In reality, with the single exception of wind, U.S. power production from renewables has stagnated for the past fifteen years.”