Japan to follow Spain down the “green jobs” drain. Important!

2010年06月18日 Saidani

Wind Farm(日本語)

According to the Cabinet Office, health-care, nursing-care and “green” businesses will add at least 1% to Japan’s GDP.

These industries will exist only as a payback to unions voter turnout and campaign contributions.  That is reason enough to stop the plan for government to be involved in their development.  However, there is a much better reason.  One that will be catastrophic to the Japanese economy if this program is adopted.

In a story by Pajamas Media on May 18, a leaked study on Spain’s “green” economy was published.

Pajamas Media has received a leaked internal assessment produced by Spain’s Zapatero administration. The assessment confirms the key charges previously made by non-governmental Spanish experts in a damning report exposing the catastrophic economic failure of Spain’s “green economy” initiatives.

Of course, the article was written in opposition to the Obama plan which is similar to the Kan plan (no surprise there), but the results of the leaked study should be included in any debate in Japan. (emphasis ours)

But today’s leaked document reveals that even the socialist Spanish government now acknowledges the ruinous effects of green economic policy.

Unsurprisingly for a governmental take on a flagship program, the report takes pains to minimize the extent of the economic harm. Yet despite the soft-pedaling, the document reveals exactly why electricity rates “necessarily skyrocketed” in Spain, as did the public debt needed to underwrite the disaster. This internal assessment preceded the Zapatero administration’s recent acknowledgement that the “green economy” stunt must be abandoned, lest the experiment risk Spain becoming Greece.

The government report does not expressly confirm the highest-profile finding of the non-governmental report: that Spain’s “green economy” program cost the country 2.2 jobs for every job “created” by the state. However, the figures published in the government document indicate they arrived at a job-loss number even worse than the 2.2 figure from the independent study.

This document is not a public report. Spanish media has referred to its existence in recent weeks though, while Bloomberg and the Washington Examiner have noted the impact: Spain is now forced to jettison its plans — Obama’s model — for a “green economy.”

Some highlights of the report, which can be downloaded as a PDF file here: Spain – Green jobs report, are below.

    The study calculates that since 2000 Spain spent €571,138 to create each
    “green job”, including subsidies of more than €1 million per wind industry job.
  • The study calculates that since 2000 Spain spent €571,138 to create each “green job”, including subsidies of more than €1 million per wind industry job.
  • The study calculates that the programs creating those jobs also resulted in the destruction of nearly 110,500 jobs elsewhere in the economy, or 2.2 jobs destroyed for every “green job” created.
  • Each “green” megawatt installed destroys 5.28 jobs on average elsewhere in the economy: 8.99 by photovoltaics, 4.27 by wind energy, 5.05 by mini-hydro.
  • Renewables consume enormous taxpayer resources. In Spain, the average annuity payable to renewables is equivalent to 4.35% of all VAT collected, 3.45% of the household income tax, or 5.6% of the corporate income tax for 2007.

If the “green” economy is viable, private industry will create the technology and raise the investments to develop the industry without government subsidies.  Instead, the Kan government risks losing jobs and raising costs and taxes to the average Japanese family just to appease the whim of the environmental activists and labor unions.

The same can be said for the health-care and nursing-care industry.  Private firms will always step forward to fill the needs of a society as long as the government does not stand in their way.

These proposals are the worse that a government can offer its people.  It is being pushed for the wrong reasons and without the proper understanding of the negative aspects and overall costs to the economy and the society.

We can not state strongly enough that this proposal must be stopped for the good of the country.  Please read this report and spread it around.

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