Tag Archives: markets

Germany’s Cost of Going “Green”

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Germany is moving decisively to eliminate coal-fired plants as a source for its economy’s energy.

Germany has already banned nuclear power, which was a singularly stupid thing to do—that source of energy already had no CO2 emissions. Nevertheless, the destruction of that industry already is ongoingly expensive.

Merkel’s decision in 2011 to dump nuclear energy by 2022 and to accelerate the build-out of renewable sources such as wind and solar power is already costing them €27 billion [$31.8 billion] each year in the form of a renewable-energy tax.

Despite that, Germany’s Commission on Growth, Structural Change and Employment has laid out the requirement, and the Merkel government seems willing to take it up.

[T]he coal commission advised the government to pay around €50 billion [$57 billion] to the three regions hit by the shutdown of lignite mines to make sure new jobs are created. It also recommended that the government should pay €32 billion [$36.5 billon] to compensate consumers and business for higher electricity prices [annually] and an unspecified amount to indemnify coal power plant operators for the lost value of their assets.

That’s just the inner bound of the cost of “green.”  With black coal mining already shut down—at a cost of €240 billion ($273.7 billion)—this will put coal-fired energy plants out of business.  It’s not just the immediate coal-based energy industry that will suffer.

Biblis, in the Hesse State, used to have a nuclear power plant.  The closure of that plant cost the city 50% of its corporate tax base.  That cascades up the political jurisdiction hierarchy and across the nation.  The increased cost of energy also is hammering German industries that are users, not producers, of energy.

Manufacturing companies, from chemicals maker BASF to carbon fiber producer SGL Carbon, have shifted investments abroad, where energy costs are often a fraction of Germany’s.

Consumers have to pay the higher energy prices, too, and that’s money they can’t spend on other goods and services—which hurts producers of those other goods and services.  All of that is lost revenue for Government, and it’s lost jobs and German prosperity.

What’s the value of changing energy sources if the energy becomes prohibitively expensive and so stunts economic growth and development?

Hysteria

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Some Congressmen are working on bills that, in their aggregate, would bar sales of critical computer components to the People’s Republic of China’s communications companies Huawei, ZTE, and other PRC companies caught violating our export laws or sanctions on those companies or companies with which these do business.

The PRC is upset.

Foreign Ministry spokeswoman Hua Chunying said it was all “hysteria,” and

I believe the action of these few representatives are an expression of extreme arrogance and an extreme lack of self-confidence[.]

The PRC’s insults and hysterical response, whether individual or taken together, are sufficient evidence that we’re on the right track.

We cannot allow PRC insults to influence our domestic matters (or our international matters, come to that), particularly including moves to hold those doing business in our nation accountable for their illegal activities.

PRC hysteria should simply be disregarded where it’s not ridiculed.

A Judge’s Error

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The Trump administration had expanded rules allowing employers to opt out of being required to provide birth control coverage to their employees at no cost to the employees, so long as the opting out was convincingly based on religious or moral grounds.  Federal District Judge Haywood Gilliam of the Northern District of California has issued an injunction blocking enforcement of the expansion while an underlying lawsuit against the expansion is underway.

Ordinarily, blocking an enforcement while the underlying case proceeds is no big deal, but this one is just plain wrong.  Gilliam based his ruling in significant part on the premise that

the [expansion] would result in a “substantial number” of women losing birth control coverage, which would be a “massive policy shift.”

For one thing, given how cheap birth control drugs and devices are and how easily obtained prescriptions for them are, it’s not at all clear that a “substantial number” of women would be unable to obtain birth control drugs or devices.

But the larger, vastly more important matter is this.  As Gilliam himself noted, the expansion would be a policy shift (massive or not, that’s irrelevant here).  Policy matters are political matters, and so they clearly are outside the purview of the courts.  Policy—political—matters are the exclusive province of the political arms of our government and of We the People.  A judge who intrudes, from his bench, into political matters clearly violates his oath to uphold the law.  Making policy has no place in his oath.

Dismantling Great Britain

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The EU is pressing its effort to punish Great Britain for the latter’s effrontery in leaving the EU.

German Foreign Minister Heiko Maas has reiterated that the EU finds a hard border between Ireland and Northern Ireland “unacceptable.” He warned of “serious damage” in the event of a no deal scenario.

Because the EU wants to split Northern Ireland away from Great Britain.

No threat there.

The California Magnet

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Newly sworn-in California governor Gavin Newsom (D) has a plan to expand on the State’s sanctuary “status” and draw even more illegal aliens into the State and into the country:

…an unprecedented new health care agenda for his state, aimed at offering dramatically more benefits to illegal immigrants….

As Newsom noted,

People’s lives, freedom, security, the water we drink, the air we breathe—they all hang in the balance

And Newsom wants to increase that risk by encouraging a flood of illegal aliens to enter the State. It’s true enough that the vast majority of those illegals are harmless beyond the economic burden they’ll inflict in Newsom’s brave new world of hugely expanded, and hugely more expensive, health care for all, citizen and illegal alike.  However, it’s also that the few who are dangerous are capable of inflicting vast damage—as the families of MS-13, et al.; the survivors of 9/11 (which terrorists entered legally, but they’re not the only terrorists entering); the victims and their families of the cartels’ drug epidemic; the families of Kate Steinle, Ronil Singh, Pierce Corcoran, Silvano Torres, and a host of others can attest.

His health care “expansion?”  He intends to implement the erstwhile Obamacare Individual Mandate at the State level.  Everyone will be required to purchase health coverage whether they need it or not, whether they want to or not.  Except those like illegal aliens, who can’t afford it.  Those coverages will be paid for by the State’s citizens and legal residents.  Somehow.  Oh, and “children?” They’ll be allowed, under Medi-Cal, to stay on mumsy’s and pop-pop’s health coverage plans until they’re 26, instead of the current age limit of 19.

Newsom has had no words on how this expansion is to be funded.  Apparently, he’s channeling Congresswoman Alexandria Ocasio-Cortez (D, NY):

People often say, like, how are you going to pay for it, and I find the question so puzzling because “How do you pay for something that’s more affordable? How do you pay for cheaper rent?” You just pay for it.

Because vastly expanding a program makes it cheaper.  Sure.

But Newsom and his clan of Progressive-Democrats in the State’s legislature don’t care about that.  They only care about the bennies flowing from their expensive, and dangerous, virtue signaling.