Improving Our Green Job Prospects

On the one hand we have a deepening economic recession, a mortgage and debt crisis, and rising unemployment. On the other hand is the growing energy and climate crisis, shadowed by the specters of peak oil and planetary meltdown. Rising prices for energy, food and health care are hitting the poor and middle class hard. We have ourselves in quite a mess.

No one has all the answers to these problems, but there is one answer that everyone with any sense embraces as a necessary first step toward a permanent solution: we must create green jobs in the renewable energy and energy efficiency industries. But despite that clear path forward, somehow the political will is not there yet and our prospects for a green jobs program in 2008 do not look very good.

When you've got as many complex problems as we do, you have to make sure that your solutions are multi-dimensional and address as many facets of the problems as possible. That is why the economic stimulus package passed on February 8 was such a lost opportunity. For a mere $5.5 billion on top of the $168 billion package that passed, Congress could have extended the about-to-expire tax credits for renewable energy and added some new home energy efficiency credits. These measures would have kept the renewable energy job engine roaring along and put some contractors to work right away installing better insulation and more efficient appliances in homes.

Failure to extend these tax credits threatens the momentum of the fast-growing renewable energy industry. The head of the American Wind Energy Association, Randall Swisher, said: "With 116,000 jobs and nearly $19 billion in investment at risk in the renewable energy industries, the minority of the Senate has again frustrated the desire of millions of Americans across the political spectrum who overwhelmingly support clean, homegrown energy."

Job creation is the only real answer to the recession, but all we got was a short-term handout that won't do much at all to stimulate the economy, and Americans know it. An AP poll found that most people think that the best way to help the economy would be to pull our military out of Iraq, freeing billions of taxpayer dollars to meet pressing needs at home.

Only 19 percent said they would go out and spend the money when those $300 to $1,200 rebate checks arrive in May, while 45 percent said they would use it to help pay their bills. Paying off the mortgage and the credit card means that ultimately the biggest beneficiaries will be banks and mortgage companies. Since the tax rebates will increase the federal deficit, the overall effect will be to trade personal debt for national debt. Even if this works as a short-term stimulus, far more is needed for the long term.

Far more is needed because this is not a "business as usual" recession. In an interview with financial reporters at Energy Tech Stocks, the "Dean of Wall Street energy analysts," Charles T. Maxwell, predicted that peak oil will arrive sometime in the next two to seven years. Oil will shoot up to the range of $300 a barrel, pushing pump prices to $15 a gallon. Maxwell said that unlike past recessions, "This will not be six months of hell and then we come out of it."

A growing chorus of oil industry insiders and even CEOs of major oil companies are beginning to publicly agree with this assessment. But most American politicians -- including the presidential candidates still in the running -- have so far failed to acknowledge the imminence of peak oil. Without that acknowledgment, green jobs are seen as a nice thing for people and polar bears, but not as what they truly are -- the only lifeline that can save a civilization about to founder on the rocks of peak oil.

Ignoring peak oil is a huge mistake.

Charles T. Maxwell is not optimistic about our green job prospects. Energy Tech Stocks characterized his thoughts this way: