Green Voodoo

Speaking of economics, I think that some of what I'm hearing about the "Green Economy" is just wrong. Voodoo economics, as they say.

Essentially, the idea is that that if we tax traditional fuels, or in some other way make them more expensive to use, then this will stimulate the economy through creation of "green jobs" and development of new "green technologies." I've heard President Obama make this argument, but I don't buy it.

If that sort of thing worked, we could create an economic boom by banning computers. Indeed, imagine a world free of job destroying, energy devouring computers! Without computers, many jobs that one person can do now might need three or more people to do. That means job creation! Scientists, engineers and entrepreneurs would be driven to discover and develop new technologies to boost productivity in our new computer-free economy. We cannot even begin to imagine what they will come up with. Think of the potential benefit to humanity!

Such ideas seem to me to be modern versions of the broken window fallacy. If we want a green economy, so be it. But we shouldn't kid ourselves about getting a boost to our economy from a gas or carbon tax. It might be looked upon as a long-term investment with a potential payoff, but in the short run it's going to cost us.