Europe’s path deeply inhuman, economically destructive
Holger Krahmer
The Washington Times
6/4/2010
The financial crisis and subsequent recession in the United States have prompted some to begin calling for a completely new kind of economy. This new economy would be based on environmental values, a so-called “Green New Deal” to be ushered in by President Obama and leaders in Europe. The plan includes cap-and-trade legislation, new spending on “green” jobs, subsidies for favored firms and technologies, and trade restrictions against out-of-favor products and industries.
The United States is the world’s most crucial economic engine, and before it goes much further down this road, it might want to look at Europe’s experience with a similar deal. It has done little to help the environment but much to harm consumers and the broader economy.
In Europe, green ideas have been in fashion for two generations and have driven policy to a much greater extent than in the United States. Despite this, we have not witnessed a sizable green wave of new jobs, as evidenced by our unemployment rates, which are routinely several percentage points higher than in America…
…Germany, like the United States, is a major industrial and manufacturing powerhouse. It continues to rely on fossil fuels and will do so for a long time to come. There is no escaping this fact, no matter what the Green New Deal enthusiasts say.
To that end, it’s important that Washington not make some of the mistakes we in Europe have made. Specifically, U.S. political and industry leaders should be careful not to follow Europe’s path of buckling under to “greenmail,” which undermines sound policy and genuine sustainable economic growth…
The entire op-ed is at The Washington Times.
