The human brain is torn between simple intuition and the more complex hard work of figuring out the unintended consequences of any policy. Who doesn’t like thinking about trees and greenery and happy animals? Who doesn’t want to see steps taken to protect those things, all else being equal? But all else is not equal. Civilization doesn’t work when central planners treat each tree as if its value is infinite.
Politicians specialize in convincing you that, with their help, you can have your cake and eat it, too. The idea of a new “green economy” that is both clean and rich with jobs became popular under Bill Clinton’s administration, thanks in large part to a compliant media and Vice President Al Gore. But anyone who understands economics knows that President Obama’s green jobs initiative is snake oil.
Obama boasted
that his $2.3 billion plan would “help close the clean-energy gap
between America and other nations.” But other nations now move in the
opposite direction. “Countries are cutting these programs because they
realize they aren’t sustainable and they are obscenely expensive,” says
the American Enterprise Institute’s Kenneth P. Green. In Spain,
economists at La Universidad Rey Juan Carlos found that each “green” job
cost more than $750,000.
Obama
claims that if we “invest” more, we can create millions of jobs — but
only if we accelerate the “green transition.” What could make more
sense? A little push from the smart politicians, and — voila! — an
abundance of new jobs and a cleaner, sustainable environment. It’s the
ultimate twofer. Except it’s an illusion, because governments do not
“create” jobs.
“All
the government can do is subsidize some industries while jacking up
costs for others,” writes Green. “It is destroying jobs in the
conventional energy sector — and most likely in other industrial sectors
— through taxes and subsidies to new green companies that will use
taxpayer dollars to undercut the competition. The subsidized jobs
‘created’ are, by definition, less efficient uses of capital than
market-created jobs.”
This is good, solid economic thinking. Many years ago, Henry Hazlitt wrote in his bestseller, Economics in One Lesson: “The
art of economics consists in looking not merely at the immediate but at
the longer effects of any act or policy; it consists in tracing the
consequences of that policy not merely for one group but for all
groups.”
In
judging any government initiative, you can’t look just at the credit
side of the ledger. Government is unable to give without first taking
away. Inevitably, more is taken away because the government substitutes
force for free exchange. Instead of a process driven by consumers
weighing their preferences, we get one imposed by politicians’ grand
social designs, what FA Hayek called “the fatal conceit.”
The green schemes make energy cost more.
Of course, some who push “green jobs” want the
price of energy to rise. Then we will live in smaller homes, drive less
and burn fewer fossil fuels. But if the environmental lobby wants
Americans to be poorer, it ought to come clean about that.
Once
you decide nature is inherently healthy, moral and beautiful, the
reasons to restrict human activity are endless. Every time we move or
breathe, we alter the environment. Some environmentalists won’t be
satisfied until our carbon footprint is reduced to zero.
Of
course, that requires abolishing civilization. But if humanity’s impact
on nature is an evil, abolishing us wouldn’t be so bad. The group Earth
First! had the slogan, “Back to the Pleistocene!” Most of us don’t
think civilization is evil, but we worry about what environmentalists
say. We don’t have the time to do complicated calculations about
economic trade-offs.
It’s easier to just recycle something, buy a Prius and donate to the Environmental Defense Fund.
Today,
we put up with amazing intrusions in the name of environmentalism. A
million petty regulations mandate surtaxes on gas, separation of garbage
into multiple bins, special light bulbs, taxes on plastic bags and so
on.
Yet
these things are of so little ecological consequence that the Earth
will never notice. For this, we must surrender our freedom?
John Stossel is host of “Stossel” on the Fox Business Network. He’s the author of Give Me a Break and of Myth, Lies, and Downright Stupidity. © 2012 Creators.com