Tags: Unemployment | Green | Job | Subsidies

Unemployment Might Be 7.9 Percent Without Green Job Subsidies

By    |   Wednesday, 04 Apr 2012 09:14 AM

International studies show that green jobs destroy twice as many jobs as they create. If those models apply to the United States, billions in spending on solar and wind energy may be raising the unemployment rate by about 0.4 percent.

Spain spent billions of borrowed euros subsidizing green jobs that turned out be destroying other jobs. Researchers at the King Juan Carlos University in Madrid found that about 4 percent of the country’s debt is related to spending on green jobs. All that borrowing has helped drive the country to the brink of bankruptcy and contributed to massive unemployment.

Rep. Paul Ryan of Wisconsin, the chairman of the Republican-led House Budget Committee, reports that researchers have found Spain destroyed 2.2 jobs for every green position it created. That was better than the United Kingdom, which destroyed 3.7 jobs for every new job in the renewable energy sector.

No one can argue that Spain suffers from very high unemployment, which now stands at about 23 percent and over half of the young people in the country are unable to find jobs. Unemployment among those under age 25 has nearly tripled from 18 percent four years today to 51 percent, according to the latest available data.

No one seems to know how many green jobs have been created by the billions of dollars in U.S. government spending. Estimates run from about 500,000 to more than 3 million. If it is only half a million, then perhaps only a million jobs have been destroyed under the Spanish model.

Without those green jobs, the U.S. unemployment rate might be 7.9 percent and hundreds of thousands of unemployed would be working.

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2012-14-04
Wednesday, 04 Apr 2012 09:14 AM
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