• Investing
  • Stock
Round Table Thoughts
  • Economy
  • Editor’s Pick
Home Economy Green Energy is the Modern “Broken Window”
Economy

Green Energy is the Modern “Broken Window”

by December 19, 2022
by December 19, 2022 0 comment
Share
0
FacebookTwitterPinterestWhatsapp

John Goodell studied literature at Berkeley, then got an M.F.A. at Columbia. He has edited Zyzzyva, a literary magazine in San Francisco, and been a contributing editor at Rolling Stone. Pretty impressive.

None of that qualifies him as a climate scientist or economist. So it’s surprising that web searches yield hundreds of solemn, even pious, invocations of Goodell’s economic wisdom: 

In reality, studies show that investments to spur renewable energy and boost energy efficiency generate far more jobs than oil and coal.

I have not been able to find a source; the quote itself has become self-recommending, using authority by reference: “studies show…”  My good friend Russ Roberts often inveighs against the “studies show” formulation, but I think we have to give Goodell credit here. Studies really do show that dismantling, preferably destroying, the existing energy grid really would create jobs. The question is, why is maximizing jobs something we want to do?

Frederic Bastiat famously showed that destroying wealth creates jobs, in his discussion of the broken window fallacy.  But there was a broader context for Bastiat’s observations on the seen and the unseen: a serious proposal that all of Paris should be burned down.  Yes, because it would create jobs. Really.

Bastiat referred to research (“studies show!”) done by a fellow Frenchman on this score: 

What will you say, disciples of good M. Chamans, who has calculated with so much precision how much trade would gain by the burning of Paris, from the number of houses it would be necessary to rebuild? (From The Broken Window)

Now, it appears that Bastiat was having a little fun; Auguste Louis Philippe de Saint-Chamans (1777-1860) was a viscount and a high-level French government official. Viscount de Saint-Chamans had argued that London’s “Great Fire” (1666) had led to substantial net economic gains; he had not said anything about Paris. 

Still, the point was portable: the increased use of resources, and substantial bump in construction employment, had increased economic activity in England by the equivalent of 25 million French francs. France should not be allowed to fall behind on the “destroy wealth to create jobs” race. Bastiat was just taking the Viscount at his word, improving the French economy by burning and rebuilding Paris.

It is worth reproducing Bastiat’s argument, from Economic Sophisms, at some length:

I originally thought that we might base a great deal of hope on fire, without neglecting war or pestilence. To start fires at the four corners of Paris with a good west wind would certainly ensure the population the two major benefits that the protectionist regime has in view: work and high prices, or rather, work by means of high prices. 

Do you not see what an immense impetus the burning of Paris would give to national industry? Is there a single person who would not have enough work to last him twenty years? How many houses would there be to rebuild, items of furniture to restore, tools, instruments, fabrics, books, and pictures to replace! I can see from here the work that will move step by step and increase by itself like an avalanche, for a worker who is busy will give work to others, and these employ yet others…

What constitutes our wealth? Our needs, since without needs there is no wealth; without disease, no doctors; without wars, no soldiers; without court cases, no lawyers and judges. If windows did not break, glaziers would be gloomy; if houses did not crumble, if furniture was indestructible, how many trades would be held up! To destroy is to make it necessary for you to replace. To increase the number of needs is to increase wealth….

Either you believe that wealth consists in having more while working less, and therefore you allow [goods and products] to enter, or you think that it consists in having less with more work, and in this case, you burn Paris.

One wonders what Bastiat would say about the current movement now in vogue among those who propose to increase jobs by destroying all the production, transportation, and power-generation capital devoted to fossil fuels. Burn all the gas-powered cars? Jobs! Tear down all the oil and gas-powered power plants, so we have shortages of electricity? So many jobs!

Once you are duped into believing destruction is productive, almost everything that a rational public policy would label as a cost becomes, by some judo move of seraphic intuition, a benefit. If need is wealth, then it makes sense to outlaw fossil fuels immediately, because of all the jobs created trying desperately to provide basic transport and energy.

The problem is that jobs are not wealth. Wealth is access to the goods, products, and services that make our lives better. It is true that “studies show” that wiping out all our productive wealth based on fossil fuels efficiently would create jobs. Those “studies” are among the best arguments against doing anything of the sort.

If my choices are to have wealth but no job, or to have a job but no wealth, I’d rather have the wealth.  But we don’t have to choose: we can have both wealth and jobs, if we don’t go around breaking all the darned windows.

You Might Also Like
  • Former Maryland Gov. Larry Hogan closes door on Senate run: ‘Didn’t have any interest’
  • Jordan says Hunter Biden made a ‘huge change’ by saying his father was ‘not financially involved’ in business
  • Jill Biden gets lesion removed from eyelid, deemed noncancerous
  • Bank and Crypto Runs: F(ac)TX vs Fiction
Share
0
FacebookTwitterPinterestWhatsapp

previous post
Reputation Works Better Than Regulation: Why Demand Should Determine Prices
next post
Argentina win World Cup but ARG token falls 50%

You may also like

Schiff spars with Hur in heated exchange over report that...

March 13, 2024

Anti-globalists crash Davos party, warn elites socialism endangers the West

January 22, 2024

Israeli airstrikes kill senior Hamas naval operative, destroyed operational command...

October 12, 2023

Fed-up House Republicans united on need for a speaker this...

October 24, 2023

House votes to kill Pentagon’s controversial abortion travel policy

July 14, 2023

Haley slams Blinken as ‘irresponsible’ for saying no link between...

October 9, 2023

Hunter Biden has major conflicts of interest as top adviser...

July 1, 2024

House Republicans say Hunter Biden used dad’s role as VP...

June 18, 2024

One trial down, one to go: Hunter Biden faces trial...

June 11, 2024

Trump calls for next presidential debate to be held on...

July 22, 2024

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Krispy Kreme stock plunges after doughnut chain pauses McDonald’s rollout, pulls outlook

      May 8, 2025
    • Don’t Buy Robinhood Stock… Until You See This Chart Setup

      May 8, 2025
    • UnitedHealthcare sued by shareholders over reaction to CEO’s killing

      May 8, 2025
    • The Unpredictable Stock Market: How to Make Sense of It

      May 8, 2025
    • AMD CEO calls China a ‘large opportunity’ and warns against strict U.S. chip controls

      May 7, 2025

    Popular Posts

    • 1

      Trump-era China sanctions ended by Biden may be...

      June 27, 2024 2,632 views
    • 2

      Walz’s honeymoon with China gets fresh scrutiny as...

      August 9, 2024 2,339 views
    • 3

      Biden appointee played key role in recruiting Chinese...

      June 25, 2024 2,320 views
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful...

      July 10, 2024 2,302 views
    • 5

      Harris VP pick spent years promoting research facility...

      August 29, 2024 2,186 views

    Categories

    • Economy (7,009)
    • Editor's Pick (2,066)
    • Investing (538)
    • Stock (2,530)

    Popular Posts

    • 1

      Trump-era China sanctions ended by Biden may be revived under new House GOP bill

      June 27, 2024
    • 2

      Walz’s honeymoon with China gets fresh scrutiny as Harris camp blasts ‘lying’ critics

      August 9, 2024
    • 3

      Biden appointee played key role in recruiting Chinese businesses to Delaware: ‘Longtime friends’

      June 25, 2024
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful of Chinese spy threats

      July 10, 2024
    • 5

      Harris VP pick spent years promoting research facility that collaborated with ‘Chinese military company’

      August 29, 2024

    Latest News

    • Krispy Kreme stock plunges after doughnut chain pauses McDonald’s rollout,...

      May 8, 2025
    • Don’t Buy Robinhood Stock… Until You See This Chart Setup

      May 8, 2025
    • UnitedHealthcare sued by shareholders over reaction to CEO’s killing

      May 8, 2025

    Categories

    • Economy (7,009)
    • Editor's Pick (2,066)
    • Investing (538)
    • Stock (2,530)

    Disclaimer: RoundTableThoughts.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2024 RoundTableThoughts.com. All Rights Reserved.

    Round Table Thoughts
    • Investing
    • Stock
    Round Table Thoughts
    • Economy
    • Editor’s Pick

    Read alsox

    US offers Israel intel on Hamas...

    May 13, 2024

    WATCH: GOP presidential candidate, Trump critic...

    July 29, 2023

    WATCH: House lawmakers parachute out of...

    June 7, 2024
    Sign In

    Keep me signed in until I sign out

    Forgot your password?

    Password Recovery

    A new password will be emailed to you.

    Have received a new password? Login here