There was good news, bad news and ludicrous news that occurred this week. Here is a Friday rundown.
On the good news front, The Charlotte Observer did an excellent editorial called “Federal disaster relief: Tossing cash in the ocean in NC.” The gist is the US Army Corps of Engineers is spending “$237 million to rebuild dunes and widen the beach on 10 miles of Topsail Island shoreline.” The sad part is the rebuild is occurring only a year after an earlier rebuild. Per Orrin Pilkey a Duke emeritus professor of geology and an expert on coastal erosion, “‘These projects can only be characterized as madness. The sea-level rise is clearly accelerating, increasing intense storms are expected as has happened in the last four years, and the amounts of money spent on these beaches will need to be expended again and again for years into the future.'” Per the Observer, “piling cash into the sand won’t stop that for long.” Ten years ago, the largest global pension trustees did a study that noted the cost of addressing climate change was in the multiple tens of trillions of US dollars.
On the ludicrous front, US Secretary of the Treasury Steve Mnuchin decided to follow his boss’ lead and pick on Greta Thunberg. In essence, Mnuchin said she needs to go back and get an economic degree and then explain why we should fight climate change. OK, Mr. Mnuchin, please tell me how spending cash to rebuild sand dunes over and over again makes financial sense? Help explain why the present value cost of renewable energy such as wind and solar, which includes the cost of acquisition, transportation, environmental degradation, production, maintenance of byproduct, and litigation is far cheaper than the present value cost of coal energy? And, while your at it, why did a Mayor, with an accounting background, in a Texas town choose a 100% renewable energy proposal over a fossil fuel one due to cost and guaranteed pricing for twenty-five years? What this shows to me is grown people are trying to denigrate a young girl as if they do, then climate change is not an issue.
On the bad news front, the courts threw out the climate change inaction case against the US by twenty-one children and now young adults. The case had merit and moved up to a district courts where it was dismissed by a 2 to 1 vote. The courts did agree with the plea to do more about climate change, but did not feel the case warranted further action. It has spawned other cases in other cities and helped fuel an advocacy to do something about climate change. What the plaintiffs will do next is uncertain at this point. It should be noted the suit against Exxon Mobil by three states is still pending. Using Exxon’s own data, the lead state New York Attorney General, is arguing that Exxon Mobil misled its shareholders and possible investors on the impact of climate change on its financials. That is securities fraud under the guise of the SEC.
The takeaways from the above are clear in my mind. Dealing with climate change is a “pay me now or pay me later” proposition. A key is we cannot put the climate back together again if we wait too long to act more aggressively. I have quoted Pilkey before, but one message bears repeating. People would be foolish to buy property on the shore and should think about selling what they have now. That cuts to the chase.
The other takeaway is the young people get it. The older people in positions of power either don’t get it or cannot say that they do, as they take so much funding from the fossil fuel industry. Coal is in the demise and more coal plants have been closed under this president than under his predecessors. That would be a good question for Messers. Mnuchin and Trump that Ms. Thunberg might want to ask. She might also want to ask why the Trump Organization petitioned, in writing, the Irish government to build a sea wall at a Trump golf course to hold back the rising ocean due to climate change. It does not take an economist to call BS on that one.