Coal can’t be made great again says conservative economist

Walter Block is a professor of economics at Loyola University in New Orleans and a Libertarian. He recently penned an op-ed piece in The New York Times called “Coal can’t be made great again.”

Block sets the context for free-market thinking using more basic purchases – shoes, clothes, restaurant meals. This “leave it to the market forces” is a mantra for free-market Republicans. Yet, as Block notes “One would think that Republicans would apply that same logic to our fuel industry.”

He adds while government has a “legitimate role” in ensuring the safety of nuclear and other plants, “it should not favor, or oppose, nuclear power, gas, oil, coal, wind, water, solar, or any other source of energy over any other.”

He also notes a couple of observations of data points which reveal “the market is moving away from coal.” First, he writes “In 2016, American reliance on coal had dipped to 30% of total electric energiy expenditure, from about 50% in 2000. In contrast, natural gas and even wind, solar and water power are becoming less expensive, and will likely take on a greater share of the overall energy industry.”

Second, he notes “For the first time, as predicted by the Institute for Energy Economics and Financial Analytsis, in April, renewables generated more electricity than power plants fueled by what was once called ‘King Coal.'”

It is through these lenses, he views the efforts to subsidize coal use and place tariffs on imported solar panels as a political attempt to “pick winners.” We should not be “propping up coal” at the expense of alternative energy sources.

In my view, we are passed the tipping point on coal. New plants are too costly to build and the present value cost of acquiring, transporting, burning, storing the ash, health and environmental degradation and litigation of coal exceeds other sources. Further, the solar energy jobs are 4x the number of coal jobs. And, wind energy is soaring in growth, especially through the plains states.

This is not a US-centric result. Renewables are growing rapidly abroad with Germany now getting more energy from renewables than coal. China has been heavily investing in solar panels. But, my favorite global example is southern Australia is now solar powered using American Elon Musk’s battery storage and a French company’s installation of solar panels. Three continents came together to forge a renewable future.

While I agree with Block for the most part, government can play a role to help move forward cleaner energy initiatives, at least temporarily. So, the temporary 30% tax credit for solar power installation makes sense, especially when our Department of Defense continues to cite climate change as a significant threat to national security, even under the current president.

But, as the renewable costs have become more on par from a production standpoint, they can stand on their own without the tax subsidy. Embracing future technologies that will drive the economy is essential. As an example, yesterday, Toyota announced the movement from 2030 forward to 2025 when 1/2 of their vehicle sales will be electric cars, with batteries being made in China. So, if our leaders look backwards too much, we might get passed by.

 

 

 

 

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A few odds and ends

Absent a large theme, let me toss out a few odds and ends for your digestion. In no particular order:

– When the pro-Brexit planners were organizing the vote, they tolerated Nigel Farage and Boris Johnson’s efforts, but did not involve them in the planning process. To see those two once again involved is not encouragjng to any future organized departure.

– There is a reason a certain US President does not want people looking down the Deutsche Bank rabbit hole. Malfeasance abounds with all parties, including the bank itself, which has been required to pay fines for money laundering. When you add to the mix a real estate developer who cannot get a US bank to lend him money and no better to place to launder money than in real estate, and it is not hard to fathom unscrupulous behavior.

– The US leaving three agreements will make the world less safe and prosperous, including the US. The Trans-Pacific Partnership was designed for the eleven participating countries to compete against China; with the US withdrawing, the other ten countries moved ahead, but it lost some clout without the US. Leaving the Iran deal (which they were in compliance with) was unwise. Instead of some stability, we are at risk, as much from Trump as from Iran. And, leaving the Paris Accord on Climate Change made us an outlier at a crucial time for our planet.

– Anti-immigration rhetoric abounds, yet facts are usually casualties in the debate. Rather than have a healthy, data-centric analysis, fear and blame are the selling points. It was succesful in the US, in the UK and in Hungary. People have a right to feel the way they do, but if they heard thoughtful discourse, they may be less zealous with their hatred.

– The ecologist and biologist Sandra Steingraber once wrote environmental impact tests are too geared toward a fifty year-old man, when children are more susceptible being closer to the ground, outdoors more, putting their hands in their mouths and mouth breathing more and without fully developed lungs and brains. I read yesterday, the Trump EPA is defunding tests to perform chemical impact analysis on children. Why? Steingraber, a bladder cancer survivor, notes we do not consider the environment enough as a cause for poor health.

That is enough for now. Let me know your thoughts.

 

Call me crazy

I hope everyone had a great weekend. We are living in interesting times, some would even use the word “crazy.” Here are a few random thoughts to match the times.

– A real hero is someone like Lori Gilbert Kaye, a 60 year-old woman who lost her life in this weekend’s synagogue shooting. She lost her life because she threw her body in front of the Rabbi. Please share her story rather than the name of the cold-blooded killer, who not only killed her, but shot two others, including an eight year old girl.

– I agreed with the President when he said people need to get vaccinated for measles.. Then, as I read on, he said during the campaign the measles vaccine is linked to autism. When will this man understand that words matter and people do not realize that the significant majority of the words this man says are untruthful ones?

– Speaking of lies, The Washington Post has recorded 10,000 lies by Trump as President. Former Speaker Newt Gingrich defended the President saying he is a businessman and is allowed to exaggerate. Mr. Gingrich, I am a businessman and if someone in business lied like the President, people would not do business with him very long. Further, why did an independent contractor who dealt with Trump companies say “Word on the street is if you do work for Trump, get paid in advance.”

– A recent poll conducted by Opinium said 55% of Brits now feel the 2016 Brexit vote was a bad idea. They have time for another vote, but not if they wait. A fact based process would help, but it would also help here in the states.

– With the advent of market segmentation in all things, including the pseudo-news and now data, we seem to be moving closer to another Robber Baron period. Now, it is so easy to obfuscate voters, they do not know that elected officials are making changes that help the wealthy. What is also unsurprising is how easily more strident groups can be fooled to go along, provided you play to their fears.  Immigration is being sold as the problem, but the main problems are technology and CEOs chasing cheaper labor costs. In Western countries the haves and have-nots are even more divided. Unless something is tangibly done, this bifurcation is unsustainable.

– Finally, it is amazing how little the US leaders talk about our ticking time bomb problems – job retraining as technology kills more jobs, increasing debt, environmental degradation, global water crisis, stabilizing healthcare costs, crumbling infrastructure and climate change. The GOP is running on building a wall, proliferating gun ownerships, restraining abortions and how bad socialization is. Make all candidates answer questions about these ticking time bomb problems. If they cannot, do not vote for them.

Call me crazy, but maybe, just maybe, the ones who are crazy are the ones not addressing real issues and telling real truths. You be the judge.

 

 

 

The time has come

It is reported the ice caps are melting at a faster rate than predicted. Coastal cities have seen increasing days of sunny day flooding. Extreme flooding is occurring as larger weather systems are stalling. And, drought areas are seeing more severe drought and forest fires are larger and more frequent.

The time has come to move forward in a concerted manner to address climate change. Efforts to waylay climate change actions must be highlighted and remedied. This should not be a political issue, but the fossil fuel industry has its foot on too many politicians’ throats.

That must change. I believe people who see the problems occurring now must act. Ask every politician what they plan to do about climate change. If the person gives a trite, dismissive answer, say that is not an acceptable answer.  The problem exists and we need to do something about it.

Even an older GOP Senator from Iowa called the President on the carpet for his “idiotic” comment about wind energy. When the President said wind mills cause cancer, Senator Chuck Grassley said that was “idiotic” and added that he was the “father of wind energy tax credits.” It should be noted Iowa gets 1/3 of its electricity from wind energy. That is forward thinking, but is not new. Oil tycoon T. Boone Pickens said wind energy was the future about eight years ago, once we bought time with natural gas. We have.

The time has come. Do not worry about being passionate as we need more fervent action.

A few green thoughts for a green day

In honor of St. Patrick’s Day, here are a few green thoughts for the day. Green will take a few different meanings herein.

– Let’s give a big shout out to the kids around the world who went on strike from school to bring awareness to the need for more action on climate change. I am certain they will receive push back from the fossil fuel funded crowd, but these kids care about the future and present of our planet.

– Let’s give a shout out to the twenty kids suing the US Federal government for insufficient action on planning the demise of fossil fuel in response to what they already know about climate change. As this unheard of case progresses, the lead attorney told CBS’ “60 Minutes” that their information is very solid and comes from the files of the US government.

– Let’s give a shout out to Germany and places like Georgetown, TX, Greensburg, KS and Burlington, VT. Coal energy now lags renewable energy in Germany as they are on their way to eliminating coal use in twenty years. As for the three US cities, they are 100% renewable energy powered.  The CPA Mayor of Georgetown said the renewable energy model selected is more cost-effective than the fossil fuel model – so it is saving greenbacks as well.

– Let me state my being green with envy as China is investing a trillion US dollars in building trade corridors with dozens of countries around the world. This is occurring at the same time the US is retrenching from its global leadership role, leaving global multilateral agreements, denigrating allies and spending money to build a wall for an overstated problem. The symbolism is stark – China is building bridges, we want to build walls. The US is enabling an ascendant China.

– Let me close with a shout out to people with chutzpah to set forth a Green New Deal. While not perfect, it is an idea worth discussing to fashion a plan going forward.   Ignoring a problem does not constitute a plan.

Happy St. Patrick’s Day. May the road rise to meet you.

 

Hey Dems, focus on these four issues

One of this Independent voter’s frustrations with politics, which is exacerbated by this President, is pressing issues are not getting discussed. And, some are made worse or are sabotaged by the current White House incumbent as we are told to focus our attention on issues he has overstated in importance or sold on fear.

While there are many issues, it is hard to boil the ocean. So, my advice to all politicians, but especially the Democrats who are pushing these ideas, is to narrow the focus to the following four issues.

– Stabilize the healthcare system and have a good debate on Medicare for All, which is a hard sell. The GOP has failed to realize that a reason they lost the House is not listening to most Americans, instead sabotaging the ACA reneging on commitments to insurers and trying to repeal it. As a retired benefits actuary, consultant and manager. I would suggest an idea to stabilize the ACA is to expand Medicare to retirees at age 60 or 62 and measure the impact for its veracity. But, we need to start by paying insurers what we committed to them.

– Climate change is real, is happening and is man-influenced. AOC is dramatizing a little about the end of the world, but the data point she is citing is if we do not make huge strides by 2030 (12 years), our ability to stop the warming trend impact is minimal. She has been ridiculed for he Green New Deal by the GOP, but I would rather discuss her plan than Senator Marco Rubio ignoring the fact the largest city in Florida is the most at risk city on the planet and is seeing a larger number of sunny days flooding from the rising tides. Who is the crazier person, the one speaking to a problem or the one ignoring it altogether?

– Job retraining is key, but we need to understand the major reasons the jobs are going away are technology/ robotics and CEOs chasing cheap labor. It is not immigration or trade, which are down the list. This especially true in those impoverished areas where industry has left them behind moving or closing a plant.

– Finally, the debt and deficit are critical to discuss. The debt just passed $22 trillion and is headed to $34 trillion by the end of 2027. The annual deficit will pass $1 trillion this year, which is nearly 1/3 of our annual revenue. My former party and, in particular, the Freedom Caucus, are as hypocritical as they come. When the Dems had the White House, the Freedom Caucus screamed bloody murder when the debt was $8 trillion, then $13 trillion. But, I give the same caution to Dems I give to the GOP, we must reduce spending and increase revenue. The math will not work otherwise, so says the CBO, Committee for a Responsible Federal Budget, The Concord Coalition and Simpson-Bowles Deficit Reduction Committee.

Of course, there are other critical issues. But, if you focus on the important few, it will resonate. This is especially true for younger folks – climate change, debt, future jobs and healthcare are important. In my view, the GOP has lost its way on issues of import. When I left the party twelve years ago, a key reason was its global warming denying stance. My thesis is if you are denying the greatest threat facing our planet, how can I trust you on resolving other issues?

We are behind the eight ball on too many issues. We are leaving our problems to our children and grandchildren. They will ask us, why did you do that? Why, indeed?

US DOD is worried about climate change

Per a Politico article yesterday, the US Department of Defense is concerned about climate change, even if the President denies the risk. It should be noted this concern is not new. Per Politico:

“Flooding, drought and wildfires driven by climate change pose threats to two-thirds of the U.S. military’s installations, the Defense Department said in a new report required by Congress.

The authors of the report, which the Pentagon delivered to Congress on Thursday, note that it probably underestimates the full extent of risk to military facilities because it only looks at likely impacts over the next two decades. The UN’s Intergovernmental Panel on Climate Change has said the world needs to become carbon neutral by 2050 to prevent global temperatures from rising 1.5 degrees Celsius, which would lock in many of the most catastrophic effects of climate change.”

This DOD report is following previous cautions that climate change is a risk to national security. This echoes the recent US government report and that of the UN. Yet, the US has a President who denies the human influence on climate change, has called it a hoax, announced the US pullout of the Paris Climate Change Accord and has eased regulations to enable the fossil fuel industry.

The larger irony is this President is inventing a crisis at the border and may declare a national emergency, while fiddling away about climate change. I think I will listen to the DOD than this man.