Damning Study Outs Target Dems: Voted to Kill Up To 108,600 Ohio Jobs

August 13, 2009

FYI, a version of the release below went out to the following districts: John Boccieri (OH-16); Rick Boucher (VA-09); Leonard Boswell (IA-03); Bruce Braley (IA-01); Steve Driehaus (OH-01); Bart Gordon (TN-06); Debbie Halvorson (IL-11); Baron Hill (IN-09); Steve Kagen (WI-08); Paul Kanjorski (PA-11); Mary Jo Kilroy (OH-15); Ron Kind (WI-03); Dave Loebsack (IA-02); David Obey (WI-07); Tom Perriello (VA-05); Gary Peters (MI-09); Collin Peterson (MN-07); Mark Schauer (MI-07); Heath Shuler (NC-11); Ike Skelton (MO-04); Zack Space (OH-18); Vic Snyder (AR-02); Bart Stupak (MI-01); and Tim Walz (MN-01).


Damning Study Outs Zack Space: Voted to Kill Up To 108,600 Ohio Jobs
Confirmation That National Energy Tax Deals A Crippling Blow to An Already-Battered Economy

 

Washington- A new study released by the National Association of Manufacturers (NAM) predicts that up to 108,600 jobs could be lost in Ohio as a result of the Democrats’ National Energy Tax that was backed by Rep. Zack Space.  The consequences of Space’s reckless and partisan decision to vote yes on this bill now threaten to seep into all sectors of Ohio’s economy and deal a devastating blow to Ohio’s unemployment rate.

 

This new and eye opening study is in stark contrast to Zack Space’s recent comments regarding the National Energy Tax:

“In my opinion, it creates a future for coal,’ he said. ‘It invests $180 billion in developing and incentivizing the use of coal in electric production. That’s an investment unlike any that’s been made in this country in any commodity like that.’ ‘It will put people to work manufacturing energy components, energy-efficient windows and doors, insulation … and many other aspects at a time when we desperately need jobs,’ he said. The bill represents an ‘aggressive step in the direction of energy independence’ for America, according to Space.” (Joselyn King, “Space: Cap & Trade Is Vital”, The Intelligencer, 8/08/2009)

The study focuses on the effects of the National Energy Tax over the next 30 years, after free permits and cushiony carbon offset provisions wear off and manufacturers are forced to deal with the brunt of the stringent regulations placed by this legislation:

 

“The primary cause of job losses would be lower industrial output due to higher energy prices, the high cost of complying with required emissions cuts, and greater competition from overseas manufacturers with lower energy costs.” (Ohio Economic Impact on the State from the Waxman-Markey Bill, H.R. 2454 Proposed Legislation to Reduce Greenhouse Gas Emissions, National Association of Manufacturers)

 

Space voted for the bill knowing that it would raise costs on consumers:

 

“‘Cap and trade’ legislation passed this summer in the U.S. House was about 1,400 pages long, and U.S. Rep. Zack Space said he read the bill in full.  He acknowledged that the measure is going to cost consumers money.” (Joselyn King, “Space: Cap & Trade Is Vital”, The Intelligencer, 8/08/2009)

 

“Zack Space’s blind partisanship could cost 108,600 Ohio jobs, and it will now likely cost him his own as well” said NRCC Communications Director Ken Spain. “As Space continues to defend his support for this disastrous legislation, eastern Ohioans have one more reason to reject him for choosing to increase costs and threaten their jobs in the midst of a worsening economic crisis.”

 

BACKGROUND:

 

Impact on Jobs: By 2030, as emission reduction targets tighten and other W/M provisions phase out, Ohio jobs decline by 79,700 under low cost case and by 108,600 under high cost case.

 

Decrease in Disposable Household Income: Ohio would see disposable household income reduced by $133 to $261 per year by 2020 and $873 to $1,419 by 2030.

 

Impact on Energy Prices: Most energy prices would rise under W/M, particularly coal, oil and natural gas. By 2015, gasoline would increase between 6% and 8%, electricity between 2% and 5% and natural gas between 17% and 26%. By 2030, gasoline prices increase between 20% and 26% while electricity prices increase by up to 60% and natural gas by up to 79%.

 

Factors Contributing to Higher Electricity Prices: W/M would result in the electric industry shutting down most carbon-based generation and/or using expensive, as yet unproven technology, to capture and store CO2. To meet the stringent goals of W/M, the electric industry would also have to substitute high cost technologies, such as biomass and wind, for conventional generation.

 

Impact on Economic Growth: High energy prices, fewer jobs, and loss of industrial output are estimated to reduce Ohio’s gross state product (GSP) by between $1.3 and $2.3 billion per year by 2020 and $13.9 and $18.9 billion by 2030.

 

Impact on Industry: The current two largest sectors, chemical manufacturing and transportation manufacturing, show decreases in output of 6.1% to 6.7% and 8.0% to 8.5%, respectively in 2030. All manufacturing sectors will suffer output losses of between 5.4% and 6.0% by 2030, while output from energy intensive sectors falls between 10.7% and 11.7%. Ohio’s coal production would fall between 70.5% and 76.8% and electricity production would fall by 15.1% to 18.6% by 2030.

 

Impact on Low Income Families: By 2030, higher energy prices mean that low income families in Ohio (with average incomes of $13,725) will spend between 18.9% and 20.1% of their income on energy under W/M compared to a projected 15.9% without W/M. Others on fixed incomes such as the elderly will also suffer disproportionately.

 

Impact on State Budgets: The increases in Ohio’s energy costs under W/M will impact expenditures throughout the state. Specifically, Ohio’s 5,204 schools and universities and 241 hospitals will likely experience a 28.2% to 42.0% increase in energy expenditures by 2030. For government entities, costs for services, including public transportation and vehicle fleets, such as school buses, will also rise under W/M.

 

To view the study in its entirety, click here http://www.accf.org/media/docs/nam/2009/Ohio.pdf

 

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