In his first address to Congress, President Obama said that the “stimulus” legislation and other short-term economic policies were necessary to prevent a decade-long recession. He then went on to advocate energy and global warming policies that will foster a perpetual recession. First, he promised that federal funding and mandates will make the United States the world leader in renewable energy technologies. As an article that might have been published in the Onion but actually appeared in the Los Angeles Times last week noted, the only thing holding renewable energy technologies back is a number of necessary technological breakthroughs that will make them work. Apparently, our President is too young to have learnt that the federal government has been throwing taxpayer money at renewables since the 1970s.
The President then called on the Congress to send him cap-and-trade legislation that would make renewable energy profitable by raising the price of conventional energy produced from burning coal, oil, and natural gas. Yes, renewable energy will become profitable, many jobs will be created, and we’ll have to settle for a significantly lower standard of living as a result. The sad fact is that the new Administration has some highly-regarded establishment Democratic economists in it, but is for some reason pursuing economically illiterate and consequently disastrous policies.