US Financial Crisis as Kick-starter for Green Technology
Bracken Hendricks & Benjamin Goldstein | December 2008
Falling auto prices, bank crashes, mass layoffs: the economic crisis has taken full hold of the United States. Current prognoses predict that the crisis will persist for at least another year. In addition, climate change poses one of the biggest challenges that president-elect Obama must address. The influential Center for American Progress, led by John Podesta, wants the new US administration to make lemonade out of the current bitter financial lemons. The sugar to be added is a "green investment program" that would not only be good for the climate, but would also stimulate the economy. Investment in energy efficiency and renewable energy would allow the United States to come out of the crisis stronger than before.
This critical investment program would require 100 billion US dollars. Half of this amount would be used for tax breaks for investment in areas of energy efficient refurbishment and renewable energy, including second generation wind energy, solar energy and biomass fuel. 46 billion dollars would be directly invested for the public good to modernize schools, construct local public transportation, and install solar panels on public buildings. A final 4 billion dollars would be designated for state bonds in order to secure private credit for energy modernization and investment in alternative energy.
Such an investment program also has the advantage of alleviating those economic sectors most strongly affected by the crisis. The construction industry, for example, would profit from the installation of wind and solar energy equipment. In short, not only could 2 million new jobs be created in the upcoming two years, but numerous layoffs could also be avoided. Additionally, "green investment" would have the advantage of allowing the domestic market to profit immediately. Only 9% of ecological infrastructure programs depend on imports. In this manner the United States would not only prevent the further loss of jobs in the middle of the crisis, but also, thanks to "green investment", better their competitive edge in the world market. Money spent now could at a minimum be recouped through reduced costs of climate protection in the future, or more probably, be turned into actual profit. The possibility for this is partly connected to the successes of the Center for American Progress. They are structured according to the model of conservative institutions such as the Heritage Foundation. Thus their primary target is the re-instatement of Democrats in the White House, but they also have a broader agenda, as can be seen from their plan, a massive 1000-page tome entitled "Change for America: A Progressive Blueprint For The 44th President".
This summary was prepared by the Atlantic Community editorial team from "A Strategy for Green Recovery" published here by the Center for American Progress Action Fund, November 2008.
Related materials from the Atlantic Community:
- Nanne Zwagerman: Obama the Atlanticist?
- Markus Drake: US Agenda for Renewable Energy: Will it Benefit Europe?
- Strobe Talbott: America's Challenge: Combating Climate Change and Nuclear Proliferation
