Green Jobs eliminate Jobs

May 23, 2009

http://hawaii.gov/dbedt/ert/symposium/loudat/loudat.html

The Economic and Fiscal Impacts of The Hawaii Energy Conservation Income Tax Credit

Presents an employment economic status for a 25 year period of time. Installatin and maintenance in comparison. The analysis does not address other forms of employment being displaced which is actually what I was looking for. But if a product has installation employment in the initial year of 194 and maintenance employment at 38 per year. My observation without research would indicate that overall displacement of macro employment would result. I heard but could not verify that for every job created in the “green energy job” market then two jobs from other sources would be displaced. This actually is a standard number of jobs lost for consideration of a new product. If the product also can show a profit by its operation then this is a product to purchase.

So an initial investment and receiving of state and federal tax credits which would displace part of the initial investment and the costs of initial installation would help stimulate an incentive for installing a solar system in ones backyard. 

 

Table 4: Total Economic and Fiscal Impacts of the ECITC

 

Item

Benefits less Costs (millions of dollars)

         

Case 1

   

Case 2

   

Avg/Yr

   

Avg/Yr

   

Year 1

Years
2-25

Total

Year 1

Years
2-25

Total

Economic Impacts

           
Total Output

$19.6

$3.83

$111.5

($21.0)

($6.33)

($172.9)

Employment

194

38

 

(207)

(62)

 
Total Labor Income

$6.6

$1.14

$34.0

($7.1)

($2.08)

($57.1)

Fiscal Impacts

           
Total Revenues

$2.0

$0.24

$7.8

($2.1)

($0.427)

($12.3)

Total Expenditures

           
ECITC Expenditure

$2.2

$0.00

$2.2

$0.00

$0.00

$0.0

Direct Fiscal Expend.

$0.00

$0.00

$0.0

$5.8

$0.49

$17.4

NET FISCAL IMPACT

($0.3)

$0.24

$5.6

($7.8)

($0.91)

($29.8)

 I was trying to also see how much is a minimum costs for a substantial market penetration in an area.  Could not specifically find this information but see below.

http://solar.energy-business-review.com/news/new_york_governer_announces_plans_for_solar_project_090515

According to NYPA, the power generated by 100 MW is the equivalent of powering approximately 15,000 homes.

******

Yet costs in various areas of the country are different.  Some areas like New York might be 6MB whereas in Washington it might be 4.5MB of applicable monthly solar radiation.  I do not know for instance how much the Seattle area might be in comparison to Spokane or Tri-Cities in Washington State.  These will be wildly different in their comparisons of monthly solar radiation.

http://rredc.nrel.gov/solar/pubs/redbook/Individual PDFs
Manual (5.5MB)

http://www.statesadvancingsolar.org/solar-101/solar-resource-map

Solar Resource Map

But just like all sources of data the data really can only truly be evaluated on a local area basis.  For the project in New York perhaps the thinking is to incorporate a little bit of aesthetics for the perceived intrinsic value which is trying to be achieved.  Then again, the same project could be installed in a cloudy environment and have the same perceived intrinsic value but rather from a purely micro economic standpoint the results could be a money drain.

END

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Barack Obama’s address to Congress 02/24/09

February 26, 2009
Barack Obama’s address to Congress

While President Barack Obama was addressing Congress he was talking to three sets of different chambers of Congress. Not the House and the Senate but rather the Republicans and the Democrats and the American people.

If the wording of what he said does eventually come true, and I believe parts of it will come true, then the other parts will have profound implications for generations to come. However, if other parts do not come through and the continuation of political differences continue, then our economy will eventually stagnate back to its normal course and take its place in a continuing history of events.

President Nixon proposed an Earned Income Tax Credit in one of his State of the Union addresses. The proposed items had been adopted by Congress and signed into law. However, does anyone realize this was presented by President Nixon in an effort to diminish the disparity between the haves and the have not. Or really should I say to diminish the distance between the racial divide which plagued the nation at that time and going back to the Civil War and to the Declaration of Independence. Social issues still seem to be an overriding attribute of equalization which past presidents have tried to address. Some take a radical approach and some have taken a progressive approach.

Energy is one of the items on Obama’s list of needs. This list was first placed on our national agenda in the 1970’s with the oil embargo and President Nixon’s administration. Congress could not find an equilibrium and still has not been able to find an equilibrium which would bring our country out of economic disadvantage from the rest of the oil producing countries. President Obama puts this in another fashion: ”

“In other words, we have lived through an era where too often, short-term gains were prized over long-term prosperity; where we failed to look beyond the next payment, the next quarter, or the next election. A surplus became an excuse to transfer wealth to the wealthy instead of an opportunity to invest in our future. Regulations were gutted for the sake of a quick profit at the expense of a healthy market. People bought homes they knew they couldn’t afford from banks and lenders who pushed those bad loans anyway. And all the while, critical debates and difficult decisions were put off for some other time on some other day.”

The finding of new sources of energy should be of a paramount goal for other goals may lead to other less savory short-term goals which only can bring on lesser achievements and lower profits in the long-run. Short-term profits always will remain short-term profits unless the long-term profits are first met.

The Pilgrims suffered for the long-term profit of establishing a settlement where they could worship God as they wanted to. The short-term profit of going south for warmth was not achieved and numerous settler passed away. But yet today their long-term goals are still being strived for as our country continues to worship God in an independent and respectful fashion. The reasoning behind “In God We Trust” becomes stronger as each generation passes the torch. A strong energy independent economy will help in the worshipping of God. Sources of oil in the Gulf and in the upper northern states need to be explored and come to fruitfulness for our continuing independence and for the joy of worshipping God.

God is still in control. From the time China unites with the United States over a common enemy to the United States once again becoming the salt of the earth our energy independence and non-reliance upon other countries would help in transforming the world once again to a vision which would be a full respecter of God and His wishes.

I read in the paper today that North Korea will be testing a rocket which could reach the United States. I believe this will be a uniting factor between the United States and China. The enemy of my enemy is my friend. The small sayings can become true statements in the joining of forces.

“Now is the time to act boldly and wisely…”

When acting boldly and wisely the writers and signers of the Declaration knew that boldness and only boldness would unite the country. A single man helped in that endeavor, Thomas Payne, by writing a pamphlet called “Common Sense”. Is our country past common sense. I dare to say ‘No’. Do we need to act boldly now, ‘Yes’. But reacting wisely is also of importance. Thomas Jefferson was bold in his writing of the original draft of the Declaration of Independence. Others thought it not wise to include the freeing of slaves. The wisdom was thought we would not have a United States but a North and a South. The slave issue finally was arrested in the fighting of the Civil War. In times of unrest our Country has surrounded the independent spirit and the respect of everyone to worship God in their own way. A few people demanding that we respect the earth while not allowing others to respect the earth by drilling to uncovers its riches is a hindrance to our independence and of our founding father’s desire to worship God in their own fashion.

“As soon as I took office, I asked this Congress to send me a recovery plan by President’s Day that would put people back to work and put money in their pockets. Not because I believe in bigger government–I don’t.”

This is a revelation to both sides of the aisle. A democrat not wanting bigger government is like saying one is a Republican. Maybe the Republicans should listen and if this comes true they should adopt President Obama as a Republican. Not just yet though.

“Over the next two years, this plan will save or create 3.5 million jobs.

More than 90% of these jobs will be in the private sector — jobs rebuilding our roads and bridges; constructing wind turbines and solar panels; laying broadband and expanding mass transit.”

Mr. President, these may be from the private sector as in construction jobs but the money and the reasoning would be for the benefit of the government bureaucracy. Roads and bridges and mass transit are objectives of government. Turbines and solar panels would be the exception only to this. But some of this may become sources of ownership by big government. Please excuse my skepticism but this still sounds like big government. If the government would get out of the way then private citizens could build their own solar panels on their property and take the funds out of their IRA or ROTH/IRA and without a penalty or taxing the retirement fund then true individuals could build their own wealth by eliminating the need for government intervention. Government has a few roles but the creation of jobs can never be the result of government except when they get out of the way so the citizens can create.

“Because of this plan, there are teachers who can now keep their jobs and educate our kids.”

Building roads and bridges, constructing wind turbines and solar panels; laying broadband and expanding mass transit does not create jobs for teachers and educate our kids. Sorry but the logic does not flow.

“Because of this plan, 95% of the working households in America will receive a tax cut…” It would seem to me if our real estate taxes were cut to the level in which the value of the house is then a bigger tax cut would be coming to 100% of the working households in America. The smaller the government the bigger the tax cut.

Education has always been of concern to Thomas Jefferson. He even had one slave cook for him in a French Cooking style for five years and then let the slave go. I never have heard if the former slave opened up a restaurant in Washington, D.C. or not. Sometimes holding onto an asset is for the betterment of one. Letting it go could be for the benefit of many. Ditto with Oil. Ditto with letting the citizens develop their own source of energy independence. The collection of the many can be for the benefit of the whole and stronger than the whole also.

Government by mandate is not the solution to our economy woes but in reality the letting go of government will be the releasing of our independence. Government pressure and trying to be helpful is what got us into this mess in the first place. But placing this issue as a national project is what might save us. Stop right there. If government got us into this mess then government should get out of the way so the independent thinking can voice victory and victory should not be that of the government.

“I have appointed a proven and aggressive Inspector General to ferret out any and all cases of waste and fraud.” This is merely an endeavor to express your concern of resolving big government while really not proving your case. Only if waste and fraud are truly eliminated will anyone be able to respect this statement. Past Presidents have stood fast to this principle but only one has achieved this as a goal. Instead of cleaning up the government I say that not the yearly debt to be reduced in half by four years but rather the debt of the United States needs to be nullified in four years period of time. Being independent and the size of government being small can accomplish this feat. With $700 billion in oil imports costing us each year the multiplier of current money flow being 12X if independence of energy can be achieved then the complete budget deficit can be erased.

“…we clean up the credit crisis…”

If I see legislation which restricts the usage of credit card debt which must be paid within three months then I will believe this is a solution to the credit crisis. Forgiveness of all credit card debt longer than six months would greatly increase the capacity of independence and reduce high interest rates. The credit card industry has severely weakened our financial system and needs a reminder of constraint. Reducing the need for and access to credit card indebtedness is the only way to”…swiftly and aggressively to break this destructive cycle, restore confidence, and restart lending.”

If you are really trying to “reform our out-dated regulatory system” then you will indeed need to adopt a tough credit card policy which would bring a “…tough, new common-sense rules of the road so that our financial market rewards drive and innovation, and punishes shortcuts and abuse.”

“The only way this century will be another American century is if we confront at least the price of our dependence on oil and the high cost of health care: the schools that aren’t preparing our children and the mountain of debt they stand to inherit. That is our responsibility.” …. “I see it as a vision for America – as a blueprint for our future.”

“I reject the view that says our problems will simply take care of themselves; that says government has no role in laying the foundation for our common prosperity.”

But I would rather say that the problem is with government and the solution is really instructing the spirit of independence to squash the lack of enthusiasm and embrace the need for independence.

Again, government has laid the foundation for independence through the forming of IRA and ROTH/IRAs. Now is the time for government to allow the independent spirit of being able to use these funds for solar cells and wind power generation in ones own home. No tax penalty and no income tax upon withdrawal. Take the roadblocks to financial success out of the independent thinkers. The collection of IRAs and ROTH/IRAs is greater than the communistic collective governments of China’s government.

A recent wave power project for the Neah Bay Tribe in the Northwest corner of the State of Washington by a Canadian firm in Vancouver, B.C. was recently discontinued and another project picked up for construction in Ireland instead was started. Was this because big government was the solution or because the company did not know if they would be paid. Washington State is in financially dyre straight and the company also discontinued a like project in California in favor of Ireland. Noting that a 10 miles by 10 mile area in the ocean can produce a great amount of electric energy for the state. Also, on the Washington coast south of Neah Bay is where no human lives for 23 miles. Neah Bay project was projected to create electricity for 150 homes. A rather small project but a start for the state.

All sources of energy need to be explored. Did the Spanish explorers stop at the east coast.

Putting a “market-based cap on carbon pollution” will only drive our existing infrastructure into a tailspin. This is like saying to depression era unemployed citizens that they need to pay a higher tax so the workers can get jobs.

There are three things which economists say create economies.

1) Land

2) Labor

3) Capital

But I say there is a different method to economies. There are three things which can create a new economy.

1) Farming

2) Extracting Minerals

and the last one is

3) Innovation.

In no way is government in this mix. If government wants to be the one contributing capital then the solution is still there. But the locomotive was an innovation. The other five items were needed. Our country expanded. When the innovation of the auto assembly line was constructed by Henry Ford the others were used and increased. With President Eisenhower’s use of innovation and the highway system the other forces came in usage and created wealth. A more efficient farming system was one of the major benefactors.

But if the extracting of oil is not continued but rather punished then the objective of developing “our recovery plan, we will double this nation’s supply of renewable energy in the next three years” then in fact this could stall this three year plan as well. To decrease an existing innovation with a tax is essentially saying to the economy to slow-down.

Eisenhower did not eliminate all new or existing roads.

The train system did not replace the road.

The assembly line did not mandate all older systems to terminate.

If something is better than a prior technology then the prior technology will soon have a modified usage. Taxing it was not done in the past nor was it necessary or useful. The free market took over. Taxing a drill, baby, drill philosophy will not create the oppressors objectives of immediately depressing the older technology but will suppress the economy so the funds for the new segment will take longer and thus require the continuation of the older system.

If you are trying to not believe in “Big Government” but you “make clean, renewable energy the profitable kind of energy” then you are in-fact creating “Big-Government”. Big Government is the problem and not the solution.

Asking “Congress to send me legislation that places a market-based cap on carbon pollution and drives the production of more renewable energy in America.” If Congress tries to create a market-based cap then this is not a market-based cap. It is a government-based cap. The devil is in the interpretation. Market vs. Government. If government invests “fifteen billion dollars a year to develop technologies like wind power and solar power, advanced biofuels, clean coal, and more fuel-efficient cars and trucks built right here in America” then the government does not need to create a market-based cap. The innovation will create this and the market would be the solution. The auto industry will then by itself be required to be self “retooled, re-imagined auto industry that can compete and win. Millions of jobs depend on it.”

“…We must also address the crushing cost of health care.”

 

I am not seeing any new solutions for or from government here. Neither do I expect a real solution from government here. I think that only a natural solution is possible. The adherence to God’s principles can truly increase the need and longevity of life. The suppression via drugs which mask symptoms is at best artificial. Creative yes, but artificial.

“Promise of education in America.”

“Right now, three-quarters of the fastest-growing occupations require more than a high school diploma.” The definition of Labor from above needs to include education. If an adequate labor force is not available then the efficient usage of capital will not be needed. A competitive cradle to college objective has already been the prior government objective and a new system of education needs to be explored. Trying and throwing funds at the old style or old system will not improve the system. But if the system has been tried then by all means “expand our commitment to charter schools”.

I think about the innovation of the pencil when it comes to schools. The lead attachment was used and then a separate eraser was picked up and used if needed. Well, our education system does to have an eraser attached to it so the immediate extra steps of picking up the eraser do need to be exercised.

The education system needs to adopt the non-public system as an attachment to the public school system. With innovation some students parents could actually pay for the cost of the salary of a teacher. But in the non-public school system they can charge a higher price and get highly skilled professional teachers. To see a teacher without a doctoral degree in some private schools is rare. Only the exceptional masters degree teachers could apply. The eraser part of this would be the invitation of one or two students from the main school populace to be invited for one semester into the class of 8 or 10 students for a recognition of other accomplishments and achievements which the parents have voted in. This would instill a higher achievement level in the other students to achieve so they possibly could be selected as fellow high achiever students. Those parents willing to expend extra funds for the professor teacher would be rewarded with a higher capacity of learning available in a public school setting and the school system would get a better general student. The higher cost of private education would be mitigated modestly.

“And we must also begin a conversation on how to do the same for Social Security, while creating tax-free universal savings accounts for all Americans.” I thought this was tried in the Bush administration era. An immediate introduction of this and not even out of the batters box or the racing gate.

The military is still the backbone of all types and styles of economies. The foundation blocks of Land, Labor and Capital and the building blocks of Farming, Extracting Minerals and Innovation could not exist without any pre-existing strength from a well-qualified military force. The defending of the strength of these foundation blocks begins with the steady hand of the military.

A child who can utter the words of “we are not quitters” with conviction and steadfastness is showing off her strength as a David, as a Ruth as a Daniel or as a Mary. Her conviction should motivate the rest of us.

END


Solar Cells and your IRA

February 3, 2009

An infrastructure built by individuals

Environmentalism. Environmentalism. Environmentalism. Drill. Drill. Drill.
 
Environmentalists say drilling is detrimental to the environment. The driller claims off-shore and tundra drilling help the animal environment. Friendly drilling needs to continue for the benefit of our society and the animal kingdom.

In the meantime alternative sources of energy “exploration” need to be developed. The solar cell energy industry has advanced considerably. One company claims they can produce a solar cell for $1 and the actual roof-top construction cost is $5 each.

But I have no money. I am working paycheck to paycheck.

You might be saving up some money in a pension plan or in an IRA.
True power lies in the ability of the individual to make decisions. Individual decisions when accumulated collectively can help or hinder a society as a whole. Collectively as the price of “at the pump” gasoline increased the individuals reduced driving habits thus the collectiveness of individual actions reduced the price of gasoline.

In the same sense government actions can help or hinder progress or should I say action or in-action of the individual as well. IRA’s and Roth IRAs have stimulated the non-pension individual to save for retirement. Some individuals have accumulated substantial massive individual account balances tax deferred or tax free. This is good.

But now the government needs to let the individual free up some of their money so the collective strength of the individual can benefit society once again.

An IRA or Roth IRA should be accessible for the individual house construction of a solar panel roof. Costs of solar cells are down and construction workers are looking for work. If the government would allow up to a $25,000 to $40,000 withdrawal from an IRA without a 10% penalty this would be the first step. Step two would be allowing the individual to: 1) withdraw the funds as a loan with payback at the selling of the house; 2) or instead of an ordinary gain charge a capital gain tax on the withdrawal.

If a loan then no monthly amounts would have to be returned to the IRS except monthly amounts received from utilities for excess electricity bought by utilities. In some utility districts the sell back amount might be higher due to the higher cost during daylight hours. The eventual selling of the house would then pay off the difference and the IRS would continue to accumulate wealth at that time with those funds.

If under a capital gain then 2008, 2009, and 2010 with an individual 15% tax bracket no capital gains tax would be paid for the cost of the solar cell roof. This would allow those in lower marginal tax brackets to truly withdraw funds and thus lower their personal costs of living. The lowering of costs may also help in freeing up other funds for IRA or retirement contributions. The higher than 25% tax bracket would enjoy a lower tax on the amount of the withdrawal by not having to pay a tax on the withdrawal of the funds for personal use at the ordinary tax rate but at the lower capital gains rate.

The third way would be the loan and capital gain rate combined. An amount above the 15% tax bracket would be considered a loan and the amount of the loan paid back as previously mentioned. For the amount in the lower tax bracket since capital gains have been calculated this amount would then not have to be paid back. Obviously the calculation would be done at the individual income tax preparation and filing time.

On the Form 1099-R, in Box 7 a code “C” for cell would be used. As with all withdrawals a payment from the trustee directly to the contractor would take place.

The advantage of this would be construction and electricians would get back to work. This collectively would be done in the southern states at first but the construction process might benefit the northern states from reduced solar cell costs. Later on with the lower costs thus this also would make solar cell roofs affordable in the northern states.

When money moves our economy moves. If money does not move our economy is stagnant.

In the meantime let’s drill, drill, drill. Let’s create an oasis for the animal kingdom and stimulate the “freely” using of electricity as previously worded on the mosaic outside of the Seattle City Light Building.