Showing posts with label cap and trade. Show all posts
Showing posts with label cap and trade. Show all posts

Friday, June 11, 2010

"Green jobs"

The continued assault by the Obama administration and the EPA on coal-fired power plants in the name of "green" and "saving" the environment should be a wake-up call to every person in the midwest. While everyone can agree on the need for "clean" air, many simply don't understand that it comes with a hefty price.

The fact is that much industry and large business is in Kentucky because of the low-cost electricity pricing associated with coal-fired power plants. I would further argue that low-cost power is Kentucky's only real economic development advantage. Fortunately, coal and its associated low-cost electricity have in many cases trumped Kentucky's non-business friendly labor laws and judicial systems. Keep adding to the costs of producing that electricity, however, and soon industry and its good-paying jobs and benefits will be fleeing the midwest.

When you hear someone talk about "all the green jobs" that will be created in the future, don't be fooled. Sure, there can be job growth in the manufacturing of components and parts needed for wind farms, solar panels and other "green" products but there's absolutely no guarantee those jobs will come to Kentucky. On the other hand, take away the state's low-cost electricity and it's virtually assured that aluminum smelters and other heavy industry will leave the state.

The hefty price for "clean" air in Kentucky is a certain loss of high-paying jobs and not just in coal mines and heavy manufacturing. How many service and retail jobs exist because well-paid manufacturing workers are able to treat their families to a meal at restaurants or to a weekend getaway? While that number is unknown, it's definitely more than will be created by "green jobs" in Kentucky.


Tuesday, January 26, 2010

Is Obama a UK fan or a Kentucky fan?

What an honor it was Tuesday for President Obama to call the UK basketball team and congratulate them for the money it raised for the efforts in Haiti. UK basketball is riding high again at the top of the college basketball world and deserves the president's kudos for another job well done.

As I watched the replay of the call on TV, however, I couldn't help but think about the irony of it. President Obama lost big in Kentucky to John McCain, his environmental policies threaten Kentucky coal, its corresponding low electricity rates and economic competitiveness. Plus, Obama's chief antagonist in the Senate is, of course, Kentucky's Mitch McConnell. To add to the irony, Lexington Congressman Ben Chandler joined the president in the call. Chandler's vote for the liberal and controversial cap and trade bill in the House soiled him badly in his home district and promptly stripped him of his previous "unbeatable" status.

Make no mistake. The call to the UK squad and Coach Cal from Obama was very appropriate (and perhaps a precursor to another congratulatory call later this spring). UK basketball is bigger than politics and is probably at least one thing Governor Beshear and Senator David Williams agree upon. Still, I couldn't help but smile at how the president shined a positive light on Kentucky for a few moments; at the same time, many don't think his environmental priorities are positive for the state in any way.
Note: I wrote this prior to UK's loss to South Carolina on Tuesday night.

Tuesday, January 12, 2010

Economy-choking laws won't create jobs

Here we are several months after the mega-billion dollar federal stimulus plan and unemployment remains stubbornly high. What was supposed to stimulate job creation has led to no more than a blip on the job front and now there seems to be a renewed interest by President Obama in job creation by the private sector.

The private sector, however, is too busy being wary of Washington. Job creators must keep their eye on Congress because of at least three issues on the White House agenda that are counterproductive to the idea of creating jobs. Business doesn't know yet how much healthcare reform will cost. We're now hearing that the very anti-business "card check" union issue will be back on the front burner soon. And while environmental "cap and trade" appears to be stuck in the mud in Congress, the EPA has moved forward with its own job-choking regulations.

Make no mistake that the results of all three of these issues would be expensive for business. More to the point, all three issues force business to take their eyes off their business of creating products or providing services and helping customers. That's no way to create jobs and as long as these three issues are hovering over business, job growth is likely to remain skittish at best.

Yes, we want clean air. There should be a balance of employer and employee interests in the workplace and healthcare is too expensive. The fact remains, however, that business creates jobs. When you make it harder and more expensive to do business, the jobs won't come. There's no amount of stimulus that will change that.