Thursday, July 28, 2011

Bozo Economics

I've said it many times before and now it looks like I have to say it at least one more time.

Jobs are a necessary byproduct of a successful business but they are not the reason for a business or an industry to exist. Any company that exists in order to create jobs is either a company that will fail or a part of some public/private partnership existing on the marriage of an inefficient premise with some government entity willing to invest your tax dollars on that inefficiency.

Which brings me to this article on WUWT:

According to Rhone Resch, the last three years have seen the U.S. solar industry go from a start-up to a major industry that is creating well-paying jobs and growing the economy in all 50 states, employing 93,000 Americans in 2010, a number that is expected to grow between 25,000 to 50,000 this year (PDF). In the first quarter of 2011, the solar industry installed 252 megawatts of new solar electric capacity, a 66 percent growth from the same time frame in 2010.

Solar energy is creating more jobs per megawatt than any other energy source (PDF) with the capability, according to one study, of generating over 4 million jobs by 2030 with aggressive energy efficiency measures. There are now almost 3,000 megawatts of solar electric energy installed in the U.S., enough to power 600,000 homes.
And these jobs created are supposed to be a feature.

In a comment to the article ferd berple responds in an even more beautiful manner than his name might suggest is possible:
Imagine for one moment that it is 1908 and Henry Ford announces to the world that he has discovered a new car manufacturing process for the model T that creates more jobs per model T produced than any other technology available.

Wouldn’t that have meant the death of the model T? If Ford had required more jobs created to produce a model T than any other car, then how would Americans been able to afford the model T? Wasn’t the secret of Ford’s success to reduce the manpower required to build the model T and thereby reduce the cost so that everyone could afford to buy a Ford model T?

It seems that by taking the other route, by requiring the most workers per megawatt produced, that solar power is pricing itself out of the market. Why not simply hire people to turn hand cranks to produce energy. That would certainly create even more jobs than solar power per megawatt.
Ding! Ding! Ding! We have a winner!

How many times in the past ten years have we heard Jennifer Granholm or some other government yokel praise the new economy and the jobs of the future that it will create? These masterminds have spent the better part of this century trying to kill efficient energy production systems in order to have them replaced with ones that squash wealth and ultimately cost many more jobs than they could ever replace.

More jobs per megawatt is not a bug, its a feature! Everybody cheer!

Where did these bozos learn their economics?

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