OPINION: Green jobs vs. red tape

By Shaun Fink, Executive Vice President

Caesar Rodney Institute

As this year unfolds, we will hear a lot of talk about creating new “green” jobs to contribute to our state economy. In advance of the cacophony, let’s examine exactly what we are talking about when we use the term “green” before the word “jobs”. As neat and packaged as the phrase seems to be, there is quite a bit of ambiguity surrounding the definition of green jobs. Generally, jobs related to renewable energy sources, energy efficiency, battery-powered or other alternatively fueled vehicles, and public transportation comprise most of what are currently considered green jobs. Beyond that general scope, however, it starts to get blurry.

For example, should jobs in the nuclear industry count as “green”? After all, nuclear plants generate electricity with virtually no air pollution or greenhouse gas. And yet, these positions are rarely considered worthy of such a lofty title. To make matters worse, many so-called green jobs are only considered so occasionally. What about workers who produce steel or cement? Think about this for a moment. Delaware Congressional candidate John Carney was promoting his involvement in the green energy field through a company called DelaWind. What has this business proposed to do? The main product of Carney’s company is supposedly going to be the steel structures that the wind turbines would sit on 12 miles out to sea in our very own offshore wind farm. Steel fabrication now counts as “green”? Well, it does when it is beneficial to do so. Funny how this same industry is considered harmful to the environment when in the process of building a coal-fired power plant.

To further confuse the point, the definition of green can change over time. Remember when ethanol was in high demand? Remember when Governor Minner insisted this was the way of the future? It followed suit that every job associated with this industry was considered green, including the corn production. Now, our environmental friends are having second thoughts about the merits of ethanol as an alternative fuel source, and those jobs are not quite so green anymore.

The truth of the matter is the definition of green jobs is much more a function of political correctness and fads then it is a process of a substantial matrix of well established criteria. In the end, it is a political shell game designed to hide the exorbitant costs involved in re-inventing our economy and way of life to fit some pre-conceived and misguided notion of purity and conformity. And now that federal money is involved, states without a firm sense of economic direction and lacking in fiscal responsibility and accountability are clamoring to eat at the table of Government Subsidy. How do you effectively vie for the money? Simple, label every job possible as “green”. In doing so you increase your take from the federal dole and get to serendipitously claim that you are closing the massive state budget deficit, while all along the only real accomplishment is an ever-increasing dependence on a centralized government for your well-being and sustenance. In case anyone has missed the subtle nuance, Delaware is one of those states. Why are we banking our economic future on government subsidized industries? And why is it being sold to us as job creation?

If this administration was truly concerned with creating jobs, it would step aside and acknowledge that the government is not the solution and cannot be the source of our prosperity. Allow those who own businesses to expand by offering substantial tax incentives for capital expenditures and new job hires. Incentivize entrepreneurs to create new businesses by proposing a system of pro-rated taxation for the early years of a start-up company where the first two years are practically tax free and gradually rise to the standard over a five year period. Help to assuage some of the risk involved in business growth by increasing the positive effect that an economic loss has on a tax return. Exempt certain small businesses from the ballooning costs of workmen’s compensation and do not require short-term disability insurance.

These initiatives, or any combination of them, will help stimulate job creation by establishing a more conducive entrepreneurial environment. This will encourage a expansion of the tax base through more and bigger businesses. More business means more tax revenue; and amazingly enough the converse is true, as well. If we want to increase revenue, then let’s encourage growth. Allow the market place to determine where jobs should be created and we will all once again thrive in our communities and the state as a whole. And this time, once jobs are being created and the economy is roaring again, we might want to think about curbing our spending appetites.

The Caesar Rodney Institute is a 501(c)(3) non-partisan research and educational organization and is committed to being a catalyst for improved performance, accountability, and efficiency in Delaware government.