Excerpt from the forthcoming new book:
“The Mad, Mad, Mad World of Climatism” by Steve Goreham
A story about Dr. Milton Friedman, Nobel laureate in economics, sheds light on the
question of renewables and jobs growth. As the story goes, Dr. Friedman was visiting
a canal construction site in an Asian nation. He saw that all of the workers were using
shovels and that there was a lack of heavy construction equipment. He asked a government official who was with him,
“Why don’t the workers have heavy machinery?”
The official replied,
“You don’t understand. This is a jobs program.”
Friedman reportedly said,
“Well, then you should take away their shovels and give them spoons.”
The point is that economic growth, not jobs, should be the goal of national governments.
Economic growth is created by increases in productivity—that is, higher output of
goods and services from each worker. Since renewable energy is more expensive and
intermittent, forced adoption of renewable energy reduces productivity in the energy sector.
Other industrial sectors that rely on low cost energy incur higher costs, also reducing
the productivity of these sectors. The net result of forced adoption of renewable energy
is a loss in productivity throughout the economy, a reduction of economic growth, and a
net loss of jobs.