The Green Jobs Fallacy

NOT A LOT OF PEOPLE KNOW THAT

By Paul Homewood

From the Institute of Economic Affairs:

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In his Party Conference speech on Wednesday, Jeremy Corbyn unveiled plans to kick-start a “green jobs” revolution, pledging to create 400,000 skilled posts in the low carbon sector. But do these claims stand up to scrutiny?
One flaw in any plan to use low carbon industries to ‘create jobs’, is that many parts of it tend to be capital intensive and people light. This is evident in Labour’s own modelling. They pledge to spend £12.8 billion on a home insulation programme they say will create 160,000 jobs. This works out at a cool £80,000 of subsidy per job created.
State-funded job creation, moreover, can carry huge costs (and opportunity costs). ‘Public money’ does not materialise from thin air, it inevitably involves diverting resources from elsewhere. If funded by government borrowing, it risks ‘crowding out’ of private investment. If not, increased…

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This entry was posted in applied price theory on by .

About Jim Rose

Utopia - you are standing in it promotes a classical liberal view of the world and champion the mass flourishing of humanity through capitalism and the rule of law. The origin of the blog is explained in the first blog post at https://utopiayouarestandinginit.wordpress.com/2014/03/12/why-call-my-blog-utopia-you-are-standing-in-it/

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