Great Change Ahead: The Dawning of a Green New Deal

Several weeks ago I wrote a post emphasizing the importance of electing a president who would focus attention on the issue of climate change and the development of renewable resources. I argued Mr. Obama was the candidate best fit to undertake t task, and his subsequent appointment certainly represents momentous change for Washington and the United States. However, the President-elect now faces a myriad of challenges during his presidency that could potentially delay the advancement of sustainable energy policies. The current condition of our nation’s economy is a principle worry among many, as the American people face a recession projected by experts to be as bad The Great Depression of the 1930s. Rising unemployment rates, decreases in household wealth, and stifled growth across numerous sectors are just some of the realities facing the once-mighty American market. Similarly, European countries are experiencing the same struggles, demonstrating the inextricable interconnectedness between many national economies. Consequently, the worldwide downturn has led citizens of the U.S. and those of foreign countries to call for decisive global action similar to The New Deal, which was enacted by President Roosevelt to counteract the turmoil he faced during his term (see graphic left). This contemporary version would introduce a series of policies and reforms to combat the slowdown by converging social welfare programs with increased governmental involvement in both the private and public sectors. Differing from FDR's New Deal, which utilized public works projects to stimulate the U.S. economy, a contemporary version would rely on the advancement of sustainable practices and alternative energies to restore the health of markets worldwide. Despite the promise of such a program, critics contend its likely exorbitant cost would be an overbearing burden on already financially troubled countries. Other naysayers cite fundamental economic theory, which holds that the present market conditions do not encourage the necessary investment and development of new technologies and fuel types. While I acknowledge the legitimacy of these concerns, the potential benefits associated with a Green New Deal, including the possibility of greater social equality through expansion of an entirely new market sector, would garner enormous promise for the future.

There are numerous realities potentially undermining the success of an environmentally focused New Deal. One of the major worries is the costly price tag associated with such a plan, as well as its potential to distract policymakers from addressing more critical issues. A piece featured in Time Magazine, "Will Green Progress Be Stalled by the Bad Economy?" reflects this pessimistic outlook. It contends that the present climate is causing many European governments to re-evaluate the markedly higher greenhouse gas emissions reduction targets they put forth in 2007. It appears the cost to realize these initial figures is forecasted to be $100 billion per year, a financial strain many nations cannot afford, as more pressing issues require government attention and spending. This then is problematic for legislation that promotes the development of various alternative energies yielding benefits in the long term. Additionally, basic economics also appears to have the potential to deter the launch of a Green New Deal. Discussing the matter is Newsweek, citing Fatih Birol, the chief economist for the International Energy Agency, for his analysis of the realities of a recession. He argues that during a downturn, commodity consumption decreases, and so too does the price of energy. Therefore the current stagnant market conditions do not induce the proper incentive for investment in the development of alternative sustainable fuel sources such as solar power and ethanol production.

Still, despite these potential deterrents, a number of factors support the likelihood of a modern New Deal. Many people feel that a new source of economic growth is needed in order to adequately remedy the world's current ills. It is my belief that the development of a “green industry” represents the greatest potential for expansion, and this outlook has been supported by a number of sources. Pete Altman, Climate Campaign Director for the NRDC, asserts that investments in clean energy "create more jobs per dollar invested than tax cuts, military spending, or oil and natural gas” (see graph). In review of the data, it would behoove the elected bodies of nations’ with climbing unemployment rates to encourage the growth of these areas. In addition, social reform groups view a "green revolution" as a way to bring wealth and greater equality to marginalized members of society. Van Jones, founder of the organization Green For All, envisions the creation of a "Green Growth Alliance," formed to champion the cause of minorities in the name of sustainable development. He claims "we can take the unfinished business...of equal opportunity, and combine it with...a green economy, thereby healing the country on two fronts and redeeming the soul of the nation." Thus Mr. Jones sees the encouragement of this emerging sector as vital in not only increasing the number of jobs available to Americans, but a method to provide more opportunity to low income earning individuals. I too agree with Mr. Jone’s belief, as the industry's relative infancy enables social welfare groups the ability to influence how it will ultimately take shape. Engaging in dialogue early on can effectively establish the interests of the constituents they represent. Furthermore, another strong indication that suggests the likely implementation of a plan of this sort is that world leaders, including newly elected President Obama, hold energy independence and investigation into other resource types to be a top priority. The American President is quoted in a Time Magazine interview, saying, "there is no better potential driver that pervades all aspects of our economy than a new energy economy.... That's going to be my No. 1 priority when I get into office."

In review of the arguments concerning the feasibility of a Green New Deal, I find that a program of this type could not be launched at a more vital time. According to the previously cited Newsweek article, American employment rates are expected to climb from 6.1% to 8% by the end of this year, the highest they have been in twenty-five years. Introducing this plan could stave off further unemployment and provide new opportunities for workers. Furthermore, in the past two months, the United States has witnessed an unprecedented degree of government intervention in the form of the $700 billion dollar bailout that was quickly passed through the Congress to assuage the financial markets. This, in tandem with the prospect of a significant economic downturn, reflects the reality that the United States may witness a degree of change not seen since The Great Depression. The parallels between our current situation and that time period are too similar to be ignored. Though we may have fallen on hard times, I believe that hitting the bottom allows us to start anew, to reevaluate the policies of our country, and implement new plans that can ensure the future success of America. Thus, I believe 21st century New Deal would be a viable way to address the many social and environmental ills we currently face today.