U.S. Stimulus Money Creating Green Jobs ....in China!

The New York Times hit a nerve last week when it reported on a joint venture between a consortium of Chinese and US companies to build a 600 megawatt wind farm in West Texas, using turbines made in China.  The project will be financed largely by Chinese banks with the help of loan guarantees and cash grants from the US government.    The problem is that the project is looking to secure $450 million in financing (out of a total project of $1.5 billion) from Federal Stimulus money.  Do you see the problem?  The United States is going to borrow money (and as we all know, most of the financing is provided by China) to provide 2,000 green jobs in CHINA!  The Wall Street investment crowd will earn profits on taxpayer borrowed financing to be sent to China to create jobs there.  This is exactly how the US has lost most of its industries (except of course, the financial industry) and will continue to flounder economically unless the trend is reversed.

The private equity groups involved in the consortium will try to convince the public that this is creating jobs in the US.  The fact is that only about 300 temporary construction jobs will be created with approximately 30 permanent positions required for wind farm maintenance.  The cost on the other hand is enormous.  Put aside the pure dollar per job cost  which is outrageous enough, and review the implications for the wind industry in the US (the same arguments may not apply to Europe as they are so far ahead of the US in renewable energy technology and do not suffer the unsustainable trade deficit that the US does).

The wind manufacturing industry is just starting to grow in the US.  The renewable energy sector is deemed to be the “next big thing” for innovation and growth around the world.  It will be a mistake if the US allows the financial industry to outsource the majority of the “green” jobs that can be created to other countries.  There needs to be a re-balancing of trade between all countries.  China has been very protective of its renewables sector, not allowing foreign competition in their markets. It is important that all countries participate and trade with each other in the renewable energy sector.  The issues confronting the world offer opportunities for all to innovate and prosper.  The US has to come to grips with supporting more than just its financial industry if it is to benefit from the creation of “green jobs”.