Two Economies

We are not going to compare the USA and China or Germany and France or any two other domestic economies. We will talk about economies, which grow in every Western country at a great pace. In some of them they grow faster, in others slower but – if utopian supporters of the idyllic economy from the 12th century managed to fulfil their goals – we would all share the same destiny, that is, economic bankruptcy of the Western world. Let me add my personal comment: the world is heading for stagnation even without dangerous energy frolics connected with global warming. But there is a difference between stagnation and bankruptcy or breakdown.

A folk saying has it that telling a partial truth is the worst lie. We have such a situation with the utopia of “green energy” that is the so-called renewable energy. I am using the words “so called” because what can be called renewable depends on exaltations and phobias of “politically correct” progressives. Its supporters – fortunately not as numerous in Poland as in Western Europe and the USA – talk and write about the advantages of renewable energy like about a utopian, wonderful world without CO2 emissions, in which new workplaces in wind, solar and biofuel energy sectors are created.

This is the above mentioned partial truth which is worse than a lie. Absolutely all studies – I do not know any comparative studies showing anything opposite – show that one workplace created in the branches connected with the generation and usage of renewable energy causes the decrease of employment in other branches of economy. According to studies from different European countries, the decrease in workplaces is from 2:1 to 5-6:1. It means that renewable energy “consumes” workplaces in a non-subsidised economy on a large scale.

In addition, most workplaces in the sector of renewable energy are impermanent, e.g. during the building of wind turbines, while lost workplaces in the sector of manufacturing energy-consuming products and in power industry itself are permanent. The continuous growth of energy costs connected with the increasing share of strongly subsidised renewable energy causes the closure of this production or transferring it to the countries which yield to the political correctness connected with global warming.

It is worth highlighting the consequences of progressive changes of proportions between two economies: normal (non-subsidised) and subsidised. It is like in the case of a healthy tree and mistletoe growing on it. As long as there is not much of the mistletoe, the tree keeps growing and is alive. The more of the mistletoe, the less vital the tree becomes and soon dies. This is the perspective of Western economies (burdened anyway with the hump of social care) if the increase in the subsidised economy proceeds.

Politicians of the Western world, who do not want to turn out to be politically incorrect for all the world and who do not accept the idée fixe of global warming, do a lot of political acrobatics. In Germany, as a result of the increase in the share of compulsorily used renewable fuels, the energy prices are two times higher than in any other country in Europe. That is why any discussions about subsidies, high and growing – because of the increase in the share of renewable energy – energy prices, are quietened. But people notice it because they pay much higher bills.

In other countries of Western Europe the situation is quite similar. President Obama has joined the group of the “progressives” in this field. Although his actions are limited by strong reluctance of Republicans and a large number of Democrats, he announced that he would try to strengthen the other (subsidised) “green” economy. Americans also do not have attractive perspectives…