B12 Solipsism

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Keystone XL Pipeline and Carbon Keynesianism

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Twists and Turns
Twists and Turns.

During the very first week of the 114th Congress, the new agenda was made clear: Bills to end the Affordable Care Act, to restrict abortion rights, to stop Obama’s immigration plan, and a bill to build the Keystone XL pipeline.

New Approved Keystone XL Pipeline Route

New Approved Keystone XL Pipeline Route

Paul Krugman laughs, and points out the absurdity of the GOP’s Carbon Keynesianism…

It should come as no surprise that the very first move of the new Republican Senate is an attempt to push President Obama into approving the Keystone XL pipeline, which would carry oil from Canadian tar sands. After all, debts must be paid, and the oil and gas industry — which gave 87 percent of its 2014 campaign contributions to the G.O.P. — expects to be rewarded for its support.

Building Keystone XL could slightly increase U.S. employment. In fact, it might replace almost 5 percent of the jobs America has lost because of destructive cuts in federal spending, which were in turn the direct result of Republican blackmail over the debt ceiling.

Oh, and don’t tell me that the cases are completely different. You can’t consistently claim that pipeline spending creates jobs while government spending doesn’t.

Consider, for example, the case of military spending. When it comes to possible cuts in defense contracts, politicians who loudly proclaim that every dollar the government spends comes at the expense of the private sector suddenly begin talking about all the jobs that will be destroyed. They even begin talking about the multiplier effect, as reduced spending by defense workers leads to job losses in other industries. This is the phenomenon former Representative Barney Frank dubbed “weaponized Keynesianism.”

And the argument being made for Keystone XL is very similar; call it “carbonized Keynesianism.” Yes, approving the pipeline would mobilize some money that would otherwise have sat idle, and in so doing create some jobs — 42,000 during the construction phase, according to the most widely cited estimate. (Once completed, the pipeline would employ only a few dozen workers.) But government spending on roads, bridges and schools would do the same thing.

And the job gains from the pipeline would, as I said, be only a tiny fraction — less than 5 percent — of the job losses from sequestration, which in turn are only part of the damage done by spending cuts in general. If Mr. McConnell and company really believe that we need more spending to create jobs, why not support a push to upgrade America’s crumbling infrastructure?

So what should be done about Keystone XL? If you believe that it would be environmentally damaging — which I do — then you should be against it, and you should ignore the claims about job creation. The numbers being thrown around are tiny compared with the country’s overall work force.

(click here to continue reading For the Love of Carbon – NYTimes.com.)


The worship of Mammon” by Evelyn De Morgan[1]. Licensed under Public Domain via Wikimedia Commons.

Infrastructure improvement? Blasphemy! Spending money to fix bridges, roads, water supply pipes, commuter rails – that’s Socialism! But building a massive pipeline to ship oil from Canada to China via the Gulf of Mexico is God’s commandment. If you consider Mammon a God that is…

Written by Seth Anderson

January 12th, 2015 at 9:27 am

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