The crossroads of the Green New Deal ?? America first against dependent America
The Biden administration is now heading towards its goal of a Green New Deal. The infrastructure deal provides about $ 140 billion in government grants and investment funds.
Subsidies for electric cars, electric charging stations. A transformation of our electricity network, handouts to certain companies, a slush fund for the energy department ?? all within the framework of the grandiose general objective of net zero emissions by a date yet to be determined.
US automakers are boasting that electric vehicles will account for half of their sales by 2030 when they currently only represent 3%. Note that this whole exercise is a textbook case of central planning unprecedented in this country.
Instead of free markets and free choice, we are getting directives that will turn into warrants, which will completely disrupt all of our transportation, energy and electricity systems in this country.
Is it a breathtaking business that is doomed to fail ?? a) because consumers don’t want high prices and high costs, b) because America doesn’t even have the resources to support this net-zero crusade, and c) because Americans are already realizing from the enormous national security and endemic military risks to this ill-conceived utopian plan.
There is a lot to say and to discuss on this subject. We have already started ?? and will continue ?? to express our opposition to the Green New Deal. But here are a few quick points:
First, raising average fuel economy standards for businesses, as Biden announced today, would dramatically increase the cost of cars and trucks. And drastically reduce automobile safety. These two reasons were the basis of the Trump administration’s opposition to CAFE’s punitive standards.
Second, the Green New Deal utopians have no idea of the cost and difficulties of creating a whole new infrastructure. They also fail to understand that a new infrastructure alone would generate huge carbon emissions. They also don’t understand that the minerals and materials that go into power generation, batteries and new power grids and so on are just not available in the United States right now.
The Biden administration is reducing access to mineral and oil and gas resources. Leases are canceled at the Arctic National Wildlife Refuge. The Keystone pipeline has been canceled. Far-left ideologues run the Environmental Protection Agency and the Ministries of Energy and the Interior.
To generate battery-powered cars and everything in between, we need minerals like nickel, cobalt, lithium, and copper. Guess who has them. China. About 95% of the extraction and processing of rare earths is carried out in the communist country. They have the monopoly.
Some 45% of the world’s supply of polysilicon needed to build solar panels comes from China. And in fact, in terms of these resources, China and Congo are the biggest players. Both employ slave labor and child labor. Both lack human rights and freedoms.
These Green New Deal utopians fail to realize that they will make America dependent on Communist China and its ally, the Congo. It is not something we want to do. It becomes a matter of national security and military security. The Bidens’ recent bans on all resource mining have reduced access to federal lands, and they seek to impose sanctions on oil, gas and coal producers.
In short, the Biden administration has no planning for the scale of investment needed in critical minerals and a whole new infrastructure. Their hopes for sweeping emission reductions will decimate this country’s consumers, businesses, factories, jobs and economy.
Middle and lower income people will suffer greatly from the higher costs and the lack of availability of electricity. You cannot have growth without power. Under the Trump administration, electricity had become cheap, accessible, and plentiful as the economy boomed. With the Bidens, it’s exactly the opposite.
This utopian crusade is the most poorly planned effort in our history. Ironically, central planners and regulators in Washington will be leading this operation. Planners are engaged in partly one-off accounting. On the one hand, they want net zero emissions, but on the other hand, they haven’t done any planning or organizing for the kind of massive investments that will be required.
What this country should do is develop a policy that would generate larger and more diverse sources of energy.
We must protect America’s energy supply. We need to increase the production capacity of rare earths and minerals. President Trump was absolutely right that we had to buy Greenland from the Danes (and they would be wise to sell it to us).
At the same time, we must promote a comprehensive energy strategy that includes renewable energy sources, developed by our dynamic and technologically advanced private companies. Not government subsidies and industrial policies. They are always doomed to fail.
In other words, it is neither desirable nor even possible to achieve a Green New Deal with net zero emissions. Let me repeat. Not desirable or even possible. It is not in the interest of this country.
It is not America first, it is America dependent on our rivals and enemies.
It is America which loses its moral base by relying on countries using forced labor without an ounce of democracy and freedom and indeed on countries which are our enemies. Let me repeat. The national security risk, the military security risk, the economic risk are so enormous that they threaten our future.
From Mr. Kudlow’s broadcast on Fox News. Image: Rare earth mine in Bayan Obo, China. Via Google Maps.