Jun
30
Long-Term Impact of Energy Movement
Posted by Chris Eifert at 10:30 am | Filed In Uncategorized
I attended the Energy Roundtable and Exhibition, sponsored by the Dayton Development Coalition, on June 26th. I was impressed by the credentials of the featured speakers and panelists and the well-intended efforts of the DDC to educate regional businesses looking to capitalize on the renewable energy and energy efficiency movement in our country. Thank you, Chris Meyer. Good program.
While I listened to the speakers (mostly public officials, utilities spokespersons and non-profit organization execs), I started to become uneasy with the “Here’s where you can get the money and here’s what you’ll need to show if you want it” theme that became central to the meeting. Sure, I realize that federal and state stimulus is the reality of 2009, but I certainly didn’t feel much like a capitalist by meeting’s end. I couldn’t help but wonder if all this money would end up in the hands of enterprises that could build sustainable, dare I say “renewable,” businesses. Or would it end up with enterprises adept at showing governors and presidents how they can score political points with quick wins in terms of short-term employment – regardless of the cost or soundness of their long-term business model.
A half hour after the conference as if on queue, the news station on my car radio presented Gabriel Calzada’s report detailing his take on the real economic impact of Spain’s unabashed government investment in “green jobs.” In case you missed it, the CliffsNotes version includes:
- $752,000 to $800,000 cost per job, many of which are temporary
- Loss of 2.2 jobs in other industries per job created
- A subtraction of 110,000 jobs from elsewhere in Spain’s economy
I’m not an economist nor am I much for politics, frankly, so I’ll not pontificate as to whether this report is likely true, false, politically motivated or other. Something in my bones says there is likely some truth to the matter. Can a government create sustainable industries? Should we be copying a model from a country with an 18% unemployment rate? Look at Japan, a country which has spent decades rescuing failing businesses in hopes of sustained economic health and growth. I believe the Nikkei 225 is currently at 25% of its 1989 record high.
You can Google G. Calzada’s report or find it at tinyurl.com/d7z9ye.
