Wednesday, July 7, 2010

might be a fine idea, but don't do it for "jobs"

From the AP (hat tip: C-J)...

The government is handing out nearly $2 billion for new solar plants that President Barack Obama says will create thousands of jobs and increase the use of renewable energy sources...

"We're going to keep competing aggressively to make sure the jobs and industries of the future are taking root right here in America," Obama said.

But what will $2 billion in higher taxes (now or in the future) do to job creation?

The two companies that will receive the money...Abengoa Solar...and Abound Solar Manufacturing...The Obama administration says those projects will create more than 2,000 construction jobs and 1,500 permanent jobs.

$2 billion in subsidies to only two companies? Wow!

And creating 3,500 jobs with $2 billion will come at a per-job cost of $570K in the first year. Assuming that the "permanent jobs" will last, on average, five years: the per-job-year cost of creating the jobs will be about $210K.


At July 7, 2010 at 9:42 AM , Blogger William Lang said...

According to many environmentalists, renewable energy sources will create thousands of jobs, but nuclear energy is too expensive.


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