
David Brooks doesn't think this is a job (Photo: Fort Dix / US Army Environmental Command / Flickr).
David Brooks is trying to do his best to help the Romney campaign, but apparently he hasn’t been getting the memos. Brooks’ column today is a diatribe against measures to promote clean energy. (That would be socialist items like tax credits for retrofitting buildings, solar panels, or fuel efficient cars. The same sorts of policies that were promoted under President Bush, albeit on a smaller scale.)
There are a number of things that are not quite right in Brooks’ piece, but my favorite is Brooks’ assertion:
The biggest blow to green tech has come from the marketplace itself. Fossil fuel technology has advanced more quickly than renewables technology. People used to worry that the world would soon run out of oil, but few worry about that now. Shale gas, meanwhile, has become the current hot, revolutionary fuel of the future.
… the oil and gas sector is investing a whopping $490 billion a year in exploration.
Oh no, Governor Romney has been running around the country trying to tell people how President Obama’s horrible energy policy has blocked drilling for fossil fuels and sent gas prices soaring and now David Brooks is telling us that the great breakthroughs in fossil fuels and massive amounts of drilling has caused energy prices to plummet. Brooks story is that the progress in drilling for fossil fuels in the Obama years has made clean energy uncompetitive.
This is horrible, Brooks is 180 degrees at odds with the Romney message. Someone better get Brooks with the program, even ardent Republicans might find it difficult to accept that energy prices are both too high and too low.
Okay, but there’s much more fun in this Brooks column. His big gotcha indictment of Obama’s clean energy program as a failure is:
The U.S. government wasn’t the only one investing in renewables. Governments around the world were also doing it, and the result has been gigantic oversupply, a green tech bubble. Keith Bradsher of The Times reported earlier this month that China’s biggest solar panel makers are suffering losses of up to $1 for every $3 in sales. Panel prices have fallen by three-fourths since 2008. … The U.S. share of the global market, meanwhile, has fallen from 7 percent to 3 percent since 2008.
Wow, what a disaster! Prices of solar panels have fallen by three quarters in 4 years. Those people in the Obama administration must feel really stupid. They thought their clean energy program would make alternative energy competitive, but look now, prices of solar panels fell by 75 percent in four years.
Okay, I’m tempted to spend the rest of the day dumping ridicule here, but I trust folks get it. The point, Mr. Brooks, was to have the price of solar panels fall. A 75 percent drop in prices in just four years is amazing. To put this in terms that Republicans can understand, if gas prices had fallen by 75 percent from their 2008 peaks, we would be paying about $1 a gallon for gas today.
Part of Brooks’ point is that China seems to have even larger subsidies than the United States, thereby undercutting our industry. This raises some important trade issues that aren’t really different in solar energy than in other sectors.
China wants to pay lots of money to subsidize its exports of solar panels. Does it make sense for us to take advantage of cheap panels from China or are we better off blocking them and allowing our own industry to grow? I have not examined the issue closely enough to have a good answer, but the idea that China’s policy somehow undermines the merits of Obama’s clean energy program makes no more sense than claiming it was a mistake for the United States to have a steel industry if China began to massively subsidize its steel exports. This just doesn’t make any sense.
It should already be clear that this column is swinging for the fences and missing bigtime, but wait, there’s more:
Then, in 2008, Barack Obama seized upon green technology and decided to make it the centerpiece of his jobs program. During his presidential campaign he promised to create five million green tech jobs. Renewable energy has many virtues, but it is not a jobs program. Obama’s stimulus package set aside $90 billion for renewable energy loans and grants, but the number of actual jobs created has been small. Articles began to appear in the press of green technology grants that were costing $2 million per job created.
Why wouldn’t renewable energy create jobs? When people put solar panels on rooftops, aren’t those jobs? I think there’s some problem with how conservatives use the word “jobs.” They also constantly tell us that government doesn’t create jobs, so apparently teachers, firefighters and construction workers employed by the government don’t have “jobs.” Now we learn that people employed in renewable energy don’t have “jobs.” There seems to be some definitional issue here that is not easily resolved.
The logic that the rest of us used is that there were millions of workers left unemployed as a result of the collapse of the housing bubble. In the absence of government stimulus, these workers would be doing nothing. (Okay, I’m assuming that the confidence fairy would not magically reemploy them.) This means that the government could use spending to remploy them doing almost anything. One of the things that these workers could do is putting solar panels on roofs and retrofitting buildings. What’s the problem with this logic?
Also, let’s give Brooks and his friends in the Romney campaign a little kick in the face for telling us about “$90 billion for renewable energy loans and grants.” Umm, there is a big difference between loans and grants. if we want to just mix and match, we have had over $4 trillion in government loans and grants for housing in the Obama years. (Virtually all of that is lending guaranteed by Fannie and Freddie and the FHA.)
In fact, if we want to mix loans and grants we can talk about $16 trillion in loans and grants provided by the Fed, Treasury, and FDIC to the Wall Street crew to keep them from going belly up during the financial crisis. Using the Brooks-Romney methodology, President Obama committed an amount that was less than 0.6 percent of the Wall Street bailout to promoting clean energy and stopping global warming.
As far as Brooks’ line that:
articles began to appear in the press of green technology grants that were costing $2 million per job created
well, as we know, you can print pretty much anything you want these days. If Brooks has a specific study, I’ll take a look at it.
Okay, there’s more here, but it doesn’t get better. I should probably mention a cheap effort to sleaze Al Gore. Gore has invested in green technologies. The government has subsidized green technologies. Brooks produces zero evidence that Gore used his connections to benefit from these subsidies in a way that any other rich person could not have done. This doesn’t mean that Gore didn’t use connections. I have no idea whether he did or didn’t. I’m not generally inclined to defend Al Gore, but Brooks has nothing on the former VP. It’s just straight sleaze.
The long and short is that Obama’s investments in green energy have in fact been modest. They have produced some real dividends as Brooks inadvertently highlights with his complaint about the plunging price of solar panels. They have not revolutionized energy production, but what would we expect from an amount of loans and grants that is equal to 0.15 percent of GDP over the last four years and less than one fifth of what we spend each year on oil and gas exploration?
Dean Baker is co-director of the Center for Economy and Policy Research. He also writes a regular blog, Beat the Press, where this post originally appeared.



16 Comments

Mr. Brook’s position enables the continued servitude of America to corporate energy interests seeking to protect a monopoly. Akin to a monopoly once enjoyed by agrarian property owners in the form of “energy,” extracted from the human slave, considered property, utilized for profit, with no protection of law.
Abundance under cuts supply side bullshit and manipulation of commodity price by corporations. Guess we have just a little to much Sun, to harvest?
Let’s protect the slave owners?
I wish all of Bobo’s hot air could be re-directed to something useful, but per usual, no such luck.
Other than Bobo’s usual flapping & twirling and getting the message wrong, my question is: does Bobo also happen to mention a teeny tiny “detail” such that Team USA substantially and heavily subsidizes all of the “extraction” industries, esp BigOil, but also BigCoal and BigMinerals providing lots of tax loopholes, tax incentives and tax write-offs. At the same time, these “extractors” of US citizens’ collective natural resources either pay NO or very very low royalties for the resources that they’re mining, digging, drilling, extracting.
Hence, US citizens pretty much pay twice for these resources: a) once to pay the “Bigs” to extract/mine/drill/dig out the resources, and then b) at the gas pump or for electricity, etc.
In a truly level playing field whether neither green technologies, such as solar or wind, nor “extracted” resources get ANY subsidies, incentives, and/or HAVE TO PAY a fair price for royalties, green technologies would pretty much end up being cheaper to produce and sell to consumers. Most US citizens are blissfully unaware of this salient detail… along with the fact that it’s mainly speculation on Wall St that drives the prices higher than need be, not to mention that most of the Oil drilled in Team USA is actually sold overseas.
It’s all a giant CON game, and shills like Bobo might as well hack out hairballs as this dreck for however much good or ill it will do. I don’t know anyone who pays attention to Bobo anyway; yet another jerk on the wingnut welfare gravy train highly compensated to spew out disinformation like this.
Should we purchase cheaper solar panels from China, who is heavily subsidizing their production, or should we subsidize our own industries to manufacture solar panels here in the USA? I don’t know, but speciously arguing that because Chinese solar panels are now cheap somehow “translates” into we should go hog-wild on extracting fossil fuels at home makes no sense.
Then again, I’m tired of being polite: conservative propoganda ceased having any relationship with reality, facts or the truth quite some time ago. What we have here with Bobo is the “logical” outcome of someone reduced to gibbering like a baboon (no offense to baboons), which is about as good as gets for the likes of an abject craven sucking twit like Bobo.
bah humbug!
Good article from Dean Baker, per usual.
H E M P, did he Mention H E M P, nature’s perfect solar collector.
Big Oil does not want competition… They want to continue corporate sodomization of a nation and use the monies extracted to by law, protecting a monopoly. China on the other hand realizes the monies wasted out tailpipes have more productive uses?
Protect the slave owners should be the new American mantra as any competition to fossil fuels is effectively squashed in America by monopolies in commerce and trade, actually fucking this republic hard.
Too “brainwashed” to admit the natural resource’s versatility.
Essentially brain deadened by the consumption of alcohol of exposure to heavy metals.
Thanks Dean but I see bobo reeducation camp training that you provided has failed;)
I say lets go hog wild and install them on every home in Amerika along solar hot water and heated floors. Please forget about building huge solar farms just so the 1% can control Main Street. I dead set against building the monster in Mojave Desert, Calif. or anywhere else for that matter.
Call in diversification. If it works for Wall Street and serious investors it should work in providing America with greater value for money earned and dollars spent when energy prices fall and liberate us from this manipulated and legislated servitude to energy corporatism.
Protect the republic… Fuck monopolies and corporations….
Agree. It’s why even T. Boone Pickens has not had an easy go with green technologies. I don’t know all the details with Pickens, but I get the feeling that his BigOil buddies threatened to take out a contract on him (or something) if he didn’t QUIT already with the Wind energy production.
Have to give him a high five for trying, but comes with a disclaimer that I’m very fuzzy on the details.
Some years ago there were some pretty serious Exxon shareholder initiatives attempting to push the Top Brass at Exxon to start diversifying into green technologies, which, you know, was only sound business planning. Need I add that these various initiatives, which did have a LOT of support amongst the smaller shareholders, always got squashed like bugs. No way, Jose!
Talk about short-sighted. I’ve said over & over, the 1% don’t have much business acumen at all. They’ve just gamed the system to work for them via whatever means possible most of it at least borderline illegal, not to mention immoral and really bad for the nation.
I believe Jefferson would agree with you. Aristocrats making money on money have gamed the system. They are short sighted and seek to perpetuate profit at the expense of law, life and the republic. Once again Congress and the SJC has protected the undue influence of money on policy making protecting oil, as Congress and the SJC protected slavery and the rape of the slave’s energy for another’s economic benefit.
The Energy Mafia all deserve to be in prison uniforms ASAP. Besides, keeping us all addicted and enslaved to their hellish products , they are destroying the Planet and denying the future to the unborn billions they’re religio/ political pals worship. The biggest farce of all is that the so called religious half of this unholy alliance LOL has the chutzpah to call it self Pro-Life no less.
Yes!!! Those blessed folks who brought the word of god, the good news, to the native American while cleansing the land of native Americans by killing woman and children, the buffalo and giving them small pox infected blankets? Pro Lifers for sure. Time to purchase some salvation next. Now to go vomit…
David Brooks is the more boring, more pretentious Rush Limbaugh.
good comment onitgoies,
you forgot to mention the other massive subsidy that the monopoly of coal, oil and nuclear get from U.S. citizens. That subsidy would be the huge cost of all the healthcare money that is spent on trying to treat people with afflictions directly caused by these corporate parasites. Once you factor in the healthcare and the environmental subsidies for the ruinous fossil fuel industry, well the cost of a gallon of gas is probably over 25 dollars per gallon.
So, if all costs of fossil fuels are included, and you use the current massive subsidy of fossil fuel along with the consumer’s cost of the energy, it is wildly expensive compared to clean energy sources. The fossil fuel industry profits and the pollution it produces should both be taxed until the industry no longer exists.
I didn’t read the David Brooks column, but it sounds like he cobbled together some ideas quickly and produced a very disjointed, illogical article. I can understand why Dean Baker is mad at David Brooks, or maybe at those who hired him to work at the New York Times. I guess it just goes to the old adage, “It’s not what you know, it’s who you know.”
Just a comment about solar panels, though. If it used to cost $20,000 to have a solar panel installed, and now it costs $5,000, it still won’t be affordable for most people and will never pay for itself. It would only make sense if you have a lot of extra money to spend and really wanted to make a statement about how you use energy. It would be sort of like getting an expensive hybrid: your gas savings will never be enough to make up for the extra expense of the vehicle, but you would be making a statement to those around you about the kind of car you want to drive and that you want to use less oil.
Thanks, Dean, for some very refreshing logic. Rec’d.
Many people in my area are finding that they can amortize a loan to install solar panels on their roofs for less than their average monthly electric bill. There are, however, some federal, state, and local subsidies involved in those prices.