American Solutions Can't Solve Cap-And-Trade Math
On June 22, 2009, Newt Gingrich's organization, American Solutions for Winning the Future, launched a new ad attacking the American Clean Energy and Security Act. Featuring shaky black-and-white footage of a bridge collapsing, the ad clearly intends to frighten the public about the costs of the Democrats' cap-and-trade plan. But, predictably, Gingrich's group has its facts all wrong.
False Ad: "The Breaking Point"
The Ad: "The economic winds are blowing. We're losing our jobs, our homes, factories closing, businesses failing, families hurting...Now, Congress is about to make things dramatically worse by passing a new national energy tax...We'll lose more jobs, pay more for gas an electricity, pushing our economy to its breaking point...Stop the national energy tax. Call your member of Congress before it's too late." [American Solutions for Winning the Future via YouTube, "The Breaking Point," accessed 6/22/09]
The American Clean Energy & Security Act Would Create Jobs
Investment In Clean Energy Technology Will Create Over 1.7 Million American Jobs. According to the Center for American Progress: "Investments in a clean-energy economy will generate major employment benefits for the entire U.S. economy. Our research finds that spending $150 billion on clean-energy investments would create roughly 1.7 million jobs. This is even after assuming a reduction in fossil fuel spending equivalent to the increase in clean-energy investments." [Center for American Progress, The Economic Benefits of Investing in Clean Energy, 6/17/09]
- Every Single State Will Gain Jobs From Investments In Clean Energy Technologies. According to the Center for American Progress, investments in clean energy projects would create 1.7 million American jobs in every state in the country. [Center for American Progress, The Economic Benefits of Investing in Clean Energy, 6/17/09]
Investment in Clean Energy Technology Creates FOUR TIMES As Many Jobs As An Investment In Oil & Gas. According to the Center for American Progress, "spending $1 million on energy efficiency and renewable energy produces a much larger expansion of employment than spending the same amount on fossil fuels or nuclear energy. Among fossil fuels, job creation in coal is about 32 percent greater than that for oil and natural gas. The employment creation for energy efficiency-retrofitting and mass transit-is 2.5 times to four times larger than that for oil and natural gas. With renewable energy, the job creation ranges between 2.5 times to three times more than that for oil and gas." [Center for American Progress, The Economic Benefits of Investing in Clean Energy, 6/17/09]
Investment In Renewable Energy Has Already Salvaged Many Manufacturing Facilities Closed During Economic Downturn. Across America, factories and plants abandoned by the old economy have been re-tooled and re-opened to satisfy the growing demand for new energy technologies. For instance, once hopeless manufacturing plants in Pennsylvania, Iowa, and Michigan have re-energized their communities by creating jobs and leading the charge toward a new energy future. [Bloomberg, 4/2/09; Star Tribune, 4/22/09; Grand Rapids Press, 3/6/08]
Cap-And-Trade Would Lower Costs For Low-Income Americans, Cost Average Households "About A Postage Stamp A Day"
CBO: "In The Initial Years Of The Program, The Bulk Of Allowances Would Be Distributed At No Cost." In its analysis of the American Clean Energy and Security Act, the Congressional Budget Office wrote: "The incidence of the gains and losses associated with the cap-and-trade program in H.R. 2454 would vary from year to year because the distribution of the allowance value would change over the life of the program. In the initial years of the program, the bulk of allowances would be distributed at no cost to various entities that would be affected by the constraint on emissions." [CBO, 6/19/09]
Cap-And-Trade Would DECREASE Energy Prices For Low-Income Americans. In its analysis of the American Clean Energy and Security Act, the Congressional Budget Office wrote, "households in the lowest income quintile would see an average net benefit of about $40 in 2020." [CBO, 6/19/09; emphasis original]
In 2020, Cap-And-Trade Will Only Cost An Average Of $175 Annually, "About A Postage Stamp A Day." In its analysis of the American Clean Energy and Security Act, the Congressional Budget Office wrote: "On that basis, the Congressional Budget Office (CBO) estimates that the net annual economy wide cost of the cap-and-trade program in 2020 would be $22 billion-or about $175 per household." Rep. Edward Markey noted it was "the cost of about a postage stamp a day." [CBO, 6/19/09; House Committee on Energy & Commerce Release, 6/20/09]
The Actual Cost Will Likely Be Lower, As Federal Subsidies Were Not Taken Into Account. In its analysis of the American Clean Energy and Security Act, the Congressional Budget Office wrote: "The analysis does not include the effects of other aspects of the bill, such as federal efforts to speed the development of new technologies and to increase energy efficiency by specifying standards or subsidizing energy-saving investments." [CBO, 6/19/09]