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Europe Is Committing Economic Suicide and So Is the United States
Raymond Richman, 6/6/2012

On Monday, June 4, 2012, we posted an article entitled The Undiscussed Measures That Would Result in an Economic Boom. We identified the loss of millions of jobs as a result of our trade deficits and environmental policies. These foolish policies are being ignored by economists, by the federal government, and by the media.  Recovery would be speedy and strong if we balanced our foreign trade and  ended the enormous subsidies to wind, solar, and biofuel energy. Imagine my pleasant surprise when two days later on Wednesday, June 6, the Wall Street Journalpublished an article by Rael Jean Isaac, entitled “Europe’s Green  Energy Suicide”, in which she writes, “Unless Europe radically rethinks its obsession with carbon-dioxide emissions and the anti-fossil fuel energy policies that flow from it, growth is likely to remain elusive.” My point exactly and I was referring to the United States.

She cites a study by the European Commission’s energy department which stated that. “There is a trade-off between climate change policies and competitiveness.” He cites another report that calculated the cost of the UK’s subsidy system for renewable energy as costing 10,000 jobs between 2009 and 2010 alone. And that, “Fritz Vahrenholt, the departing head of the renewable energy arm of RWE Innogy [Germany’s Renewable Energy Feed-in  Act of 2000] and a “former hero of the German environmental movement”  now says: “We’re destroying the foundations of our prosperity. In the end what we are doing is putting the German automotive sector at risk, the steel, copper and chemical sectors, silicon, you name it.” She concludes with the following statement, “Evidence mounts daily that man-made global warming is a phony apocalypse, but its effect in depressing living standards is all too real.”

To make matters worse, France and Germany have imposed a “moratorium” on shale-gas exploration. At least so far, we in the U.S. have done little more than make it difficult to exploit our deposits of gas and oil in our vast shale deposits. Not only do we agree with her so far as Europe is concerned but we believe that the same can be said for the United States anti-fossil fuel policies. Whom the Gods would destroy they first make mad. Most of our legislators are out of their minds throwing away billions of dollars in anti-fossil fuel madness at the expense of investment and jobs in manufacturing and ignoring the loss of millions of jobs in the outsourcing of American factories. 

Congratulations to the Wall St. Journal for publishing Ms. Isaacs opinion piece. Skepticism is the earmark of the press in democratic countries.

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Comment by Captain Pithart, 6/8/2012:

"Mr." Isaac is a woman, guys.

Response to this comment by Raymond Richman, 6/9/2012:
Thanks for telling us. We made the necessary changes.

Comment by Joe, 6/9/2012:

It's shameful you all call yourselves economists, or is it? Do you think that the world has enough non-renewables to sustain everyone at the current consumption rate? Look at China, although it's GDP real growth rate is "only" 7%, it's still increasing its energy consumption daily. As economists, you should know that when a resource becomes very scarce, the price skyrockets. With energy, if people cannot afford it, people don't buy things in order to try to pay for energy. That leads to problems in a country where 70% of GDP is consumption. Think things before you pen such an asinine commentary. Typical right-wing loonies.

Response to this comment by Raymond Richman, 6/9/2012:
Typical name-calling and having all your facts wrong. We have an estimated century of natural gas and oil resources in the U.S.  The wind and solar plants required state and federal subsidies of more than fifty percent of the capital. In addition, electric utilities are forced to buy their output which forces the utilities to raise electricity prices -- a hidden sales tax on consumers and businesses. By contrast natural gas, coal, and nuclear power plants require so subsidy at all and lower electricity prices. The eurozone is about to collapse with the high cost of "green" energy an important contributing factor. Raymond Richman    

Comment by ep, 6/10/2012:

I believe global warming is real.  It has been greatly exaggerated and cast with fear tactics and emotion, but it is real.  But we are voluntarily bankrupting the advanced nations of the world by eliminating every possible source of economical power generation.  Voluntary bankruptcy is worse than global warming could ever be, and it is STUPID.

We cannot AFFORD the Green Agenda.  Meanwhile, China has been the number one emitter of greenhouse gasses since 2007 and is building coal power plants by the dozen.  They are laughing all the way to the bank.  If America goes back to the stone age, with Zero electricity and Zero automobiles and Zero fossil fuels, there would be a temporary decline in greenhouse gas emissions for four years, after which the inexorable increases by China and the Far East would overtake the initial decline, and total emissions would thereafter be greater than today and increasing.

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  • [An] extensive argument for balanced trade, and a program to achieve balanced trade is presented in Trading Away Our Future, by Raymond Richman, Howard Richman and Jesse Richman. “A minimum standard for ensuring that trade does benefit all is that trade should be relatively in balance.” [Balanced Trade entry]

    Journal of Economic Literature:

  • [Trading Away Our Future] Examines the costs and benefits of U.S. trade and tax policies. Discusses why trade deficits matter; root of the trade deficit; the “ostrich” and “eagles” attitudes; how to balance trade; taxation of capital gains; the real estate tax; the corporate income tax; solving the low savings problem; how to protect one’s assets; and a program for a strong America....

    Atlantic Economic Journal:

  • In Trading Away Our Future   Richman ... advocates the immediate adoption of a set of public policy proposal designed to reduce the trade deficit and increase domestic savings.... the set of public policy proposals is a wake-up call... [February 17, 2009 review by T.H. Cate]