Washing Machines, Flood Insurance, and Job Creation

Washing Machines

Because of new energy conservation standards, new washing machine models will be less efficient than old models.

Associate Fellow Ben Lieberman shows that free market alternatives to government mandates can lead to more efficient machines that use less energy.

“While some federal regulators are trying to reduce laundry-related energy use in this ham-fisted manner, other regulators may be stifling a better approach. Companies such as Proctor and Gamble, the makers of Tide, are making advances in detergents that work well in cold water. Since a good portion of the energy used in cleaning clothes is for heating the water, further progress that would allow most loads to be satisfactorily cleaned in cold water would likely save more energy — and at far less cost and hassle — than clothes washer efficiency standards.”

Flood Insurance

FEMA is asking for a $20 billion bailout of its National Flood Insurance Program.

Policy Analyst Michelle Minton explains why the NFIP is broke.

“For years groups and individuals have warned that NFIP was underfunded and increasing its liability each year by not encouraging consumers to move or alter their homes in a way that would limit future losses. The availability of government provided insurance allowed people to continue building in at-risk areas like Florida’s coastline. The big problem? Government run insurance providers are not motivated to charge adequate rates, keep costs down, or encourage consumers to alter their homes to prevent further damage.”

Job Creation

The Obama administration claims that the $620 billion of stimulus money they spent through June has saved or created 2.3-2.8 million jobs.

Warren Brookes Fellow Ryan Young points out that at $221,428.57 per job, that’s not a great deal for the American taxpayer.

“The private sector tends to spend less than the government to create a job. Since stimulus spending is spending more money to create fewer jobs than the private sector, it is actually causing net harm to the job market.”