Freedom Line Blog

Further evidence that the Obama Administration’s green jobs fetish defies all logic, economic or otherwise, comes from this report from CNS News:

An Obama administration green jobs grant program that spent $11 billion lacks a verifiable job-counting system and likely created only a fraction of the jobs it claims, according to a staff report by the House Energy and Commerce Committee.

While Energy Secretary Steven Chu said the grants “created tens of thousands of jobs,” the government’s own National Renewal Energy Laboratory estimates it created 910 direct jobs.

The House report criticized even those numbers, saying: “The job creation numbers that exist for Section 1603 are based on models, not actual data from completed projects. Neither Treasury nor DOE have turned over actual jobs data on the Section 1603 grants program to the committee.”

In the spirit of generosity, let’s assume the 910 number is correct. At $11 billion, that comes out to well over $12 million per job. A ludicrous amount to be sure, but also one that comes with an enormous opportunity cost. Scroll down the page to Ashton’s post on the cost-effectiveness of Washington D.C.’s Opportunity Scholarship program and you’ll find that the whole thing (which the Obama Administration has consistently targeted for elimination) could be funded at the cost of less than two of those green jobs.

The character of this administration can be defined by its priorities. Does anything more need to be said than that they would rather slip millions of taxpayer dollars to tech firms who haven’t so much as worked up a business model than to poor children in the inner city? Hope indeed.

In a recent commentary piece here at CFIF, I noted how the green energy initiatives that President Obama has repeatedly sold as the cure for the nation’s economic ailments have been shown to lead to economic ruin in places like Spain. For those who still doubt that a similar outcome will result stateside, this piece of representative math, courtesy of the Heritage Foundation’s David Kreutzer, should give pause:

In a speech at a wind-turbine blade manufacturer in Iowa, President Obama called for extending two sets of subsidies that turn energy economics upside down and force higher costs on consumers and taxpayers.

The first extension is for the production tax credit (PTC), which is set to expire at the end of the year. It provides wind-energy producers with a subsidy of about 40 percent of the wholesale cost of electricity. So, when a wind-energy producer sells $50 worth of electricity, Uncle Sam adds another $20 for a total revenue of $70 to the producer.

The second extension is for the Advanced Energy Manufacturing Credit—originally funded in President Obama’s “stimulus” bill. This 30 percent credit cuts the cost of $100 worth of equipment to just $70.

So there you have it. Fifty dollars of actual revenue is bumped up to $70 with the PTC and $100 of costs are cut to $70 after the special tax credit. That is, $50 = $100 after taxpayers make up the difference.

Imagine for a moment if the federal government was proposing to use taxpayer dollars to double the incoming revenue of major Wall Street investment firms. It would rightly be denounced as the worst kind of crony capitalism. So why should the reaction be any different when that money is going into windmills?