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Tuesday, December 08, 2009

Questions that Should be Addressed by Environmentalists

The world is about to meet in Copenhagen about the future of Global Warming. In spite of chilling news of the revelation of thousands of emails that indicate that the alarmists have distorted information about climate change, world leaders seem to be on pace to move on with an aggressive agenda designed to massively expand government control in virtually every industry. The environmental agenda includes heavily taxation and increased regulation of many industries.

With this agenda, it is time to ask some serious questions.

What kind of impact have these policies had on other countries?

Although most European countries have been passionate in its environmental activism, one of the most aggressive has been the country of Spain and the results have been disturbing for any country considering a similar approach.

A study (by Gabriel Calzada Álvarez PhD) about Spain's efforts provides an insightful view of the negative impact the pursuit of green jobs have had on the economies of Europe. The chasing of "green jobs" is nothing new, according to Calzada. He points out that European countries have lived under regulations and subsides for the development of such industries since 1997, and the economic impact has been both impressive and very negative.

According to Calzada, Obama's "model country" of Spain has lost 2.2 jobs for every job created. That translates to 9 jobs lost for every four new jobs provided. Calzada goes on to extrapolate the numbers and points out that, if the US was "fortunate" enough to create 3 to 5 million green jobs, it would do so at the lost of at least 6.6 to 11 million jobs that already existed. For most Americans, this is simply too big of a price to pay.

What is also disturbing is how much these green jobs cost. According to the study, each job cost an incredible $800,000 each. This for jobs that often only pay approximately $15 an hour. In a situation where the US unemployment rate is growing at a rapid pace, this type of cost for employment and the trade off of pre-existing jobs is a difficult sale.

The technology/prosperity question.

The countries with the worse environments, generally speaking are poor and have primitive technology. The countries who have made the biggest strides in the environment are economically rich. When countries are poor they simply have fewer resources to improve the environment or to make better technology.

I remember an encounter I had while conducting seminars on Free Market economics. When I traveled to Eastern Europe and the former Soviet Union, I was in shock at the pollution levels. Poland was particularly bad. I remember escaping to a local park because of the trees there made it easier to breathe. Much of the time my eyes simply watered and I coughed. It was miserable. I had a meeting with an economist in the Polish government and he noticed my distress and he quickly concluded it was due to pollution levels. He said that Poland did not lack regulations and in fact "we have the toughest environmental laws of any country in the world." Sure enough, I did my homework, and that was true at the time. This gentleman became quite philosophical about the problem, stating "the problem was recognized long ago by Aristotle who said 'What is common to the greatest number gets the least amount of care. Men pay most attention to what is their own; they care less for what is common; or at any rate they care for it only to the extent to which each is individually concerned. Even when there is no other cause for inattention, men are more prone to neglect their duty when they think that another is attending to it.'" The economist went on to say that he hoped that the efforts the country was taking towards free markets would lead to more ownership and better care of the environment.

Later, in another meeting he said, "the answer to these environmental problems are found in technology, not regulation." I liked the sound of that, so I asked him to go on, he said"as we recover economically and have more ownership, we will enjoy greater capital formation, which will lead to better and more efficient technology. That, more than anything else will reduce pollution." I casually responded, "I have never seen a poor country that was not polluted" he shrugged his shoulders, lifted his hands in the air and said "neither have I."

The rhetoric coming from Copenhagen seems to be ignoring the scandalous emails that have rocked the environmental movement, the negative impact this agenda has had on jobs, and the linage between prosperity and technology. Watch carefully what comes out of this event.

Kevin Price is a syndicated columnist whose articles frequently appear at ChicagoSunTimes.com, Reuters.com, USAToday.com, and other national media. Kevin Price is Host of the Price of Business (M-F at 11 AM on CNN 650) and Publisher of the Houston Business Review. Hear the show live and online at PriceofBusiness.com. Visit the archive of past shows here.

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Friday, May 02, 2008

Today Show's Lack of Environmental Concern?

I like the Today Show because it is a brilliant combination of engaging personalities, excellent interviews, even attractive video, and good old commercialism. No TV show leverages every minute of its air time to make money better than Today.

However, Today is ultimately positioned as a news program and rarely does a week go by where they don't take someone to task for "failing to go green," for being "environmentally insensitive," or telling people clever ways to be successful conservationists. With that, I am surprised that the program has gotten a pass from the blogosphere and others for its recent "Where in the World is Matt Lauer" segments.

Obviously the feature is extremely popular, taking Matt to exotic locations around the world in a week. This year his destinations were (in this order and from the site):

* Day One, Buenos Aires. "On the first leg of his global adventure, Matt visits a city known for steaks, wine, the tango and more..."

* Day Two, Amsterdam. "Matt jumps the pond to the city of bikes, red lights ... and tulips."

* Day Three, Laos. "Matt's third stop on his adventure takes him to Southeast Asia, to the the landlocked Communist country of Laos."

* Day Four, Istanbul. "For the best of both the East and West, Matt heads to Istanbul on the fourth leg of his journey."

* Day Five, Seychelles. "Matt finishes his adventure in an island paradise known for eco-tourism"

It has been an exciting five day journey with great sights and sounds (see video above). But look at the above destinations and a map and you will find that the show criss-crossed around the world adding thousands of miles to the journey as it practically flew over future locations. It boasted being the longest journey for Matt in the history of the feature, but with significant additional energy cost. Then again, the show enjoyed a boost in ratings this week, so I guess life is full of trade offs.

For a copy of the free audio program and free report, "Why Your Marketing Isn't Working," email Info@HoustonBusinessShow.com and put "marketing" in the subject line.

Kevin Price is Host of the Houston Business Show (M-F at 11 AM on CNN 650) and Publisher of the Houston Business Review. Hear the show live and online at HoustonBusinessShow.com. Visit the archive of past shows here.

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Thursday, April 24, 2008

The American Magazine: Excellent Reading

One of the great things about the Internet is the huge volume of information that is available in virtually every area under the sun. It is also one of the biggest problems with the Internet, creating a massive recycling of content and quite difficult to find anything remotely original.

With that, I was thrilled to stumble on the new American Magazine. The writing is sharp and concise and (more importantly) the thought is very original. It doesn't bore you by acting smart (long and laborious), but by being smart in the way it approaches problems and polices.

One of my favorite sections of the magazine is "The American Scene," which provides windows of what is going on in the economy. Recent articles included:

* The Venti Effect. This article examines the positive impact that Starbucks Coffee has had on smaller competitors. Who would have guessed that a big chain like Starbucks would do the necessary market research to tell smaller competitors where to place stores? Because of Starbucks pricing model, this smaller stores can typically compete quite well when it comes to pricing. This is a very contrarian view of large businesses.

* The Myth of Offshoring Pollution. Extreme environmentalists are continually arguing that the sky is falling, and if there has been any reduction in pollution in the US it is because the manufacturing jobs have been exported. A telling article from the American points out that in areas where there have been higher manufacturing production in this country, there has been a decrease in polution. What is the real cause of reduction? New technology.

* In Ease of Paying Taxes, We're #76. We hear many platitudes about the great free enterprise system in the United States. There is no doubt about it, the US is wildly successful by world standards, but a recent report from PriceWaterhouse and reviewed by the American shows that we are ranked 76 in terms of ease of payment of taxes. We are successful in spite of our system and not because of it.

There are other great articles through out the magazine and it will certainly become "must reading" in preparing for my radio show and writing in this blog. On its excellent website you will also find great audio programs with some of the finest minds in business, politics, and culture today, like this interview with author Tyler Cowen (author of Markets and Cultural Voices).

I suggest spending time with American today.
For a copy of the free report, "Why Your Marketing Isn't Working," email Info@HoustonBusinessShow.com and put "marketing" in the subject line.

Kevin Price is Host of the Houston Business Show (M-F at 11 AM on CNN 650) and Publisher of the Houston Business Review. Hear the show live and online at HoustonBusinessShow.com. Visit the archive of past shows here.

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Tuesday, February 27, 2007

Run Gore Run

I am formally announcing my endorsement for Al Gore to run for President. As a Democrat, of course. Which means I will never vote for him, but he could do an excellent job of further dividing the Democrats for the '08 elections.

Since becoming something of a rock star and actually winning an Academy Award for best documentary (for his apocalyptic assessment of the environment called An Inconvenient Truth), many on the Left are hoping he might jump into the race. All of the Hollywood money that Barack Obama was receiving will quickly shift to "one of their own", in my opinion. (By the way, Gore has his own inconvenient truth, since the media is reporting that his own home consumes ten times the energy of the average house in the US. Can you spell hypocrite?).

Now we are being "tempted" by the idea on AOL, as they ask visitors whether or not Gore should run. Interestingly, he won overwhelmingly in the poll against Obama, John Edwards, and even Hillary, both in the Democratic nomination and the general election (at least compared to the other mentioned Democrats in the survey). I hope Al Gore drinks from this Kool Aid and jumps in, but I doubt the poll is accurate. I know many people, like myself, voted in the survey and was favorable to Gore on every question. Why? Because the other candidates are already in and the more competition the Democrats have, the better it is for Republicans. At least that's the theory.

I want to encourage you to go vote for Gore too at the AOL poll. Let's give the Democrats some of the chaos Republicans have recently suffered from.

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