A Weak Economy Is the Perfect Time to Spend Money to Combat Global Warming

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Monday, 05 May 2014 07:02

The Post had a major front page article reporting that President Obama plans to focus on global warming in the remaining years of his presidency. At one point it tells readers;

"during his first term the president’s top aides were sharply divided on how aggressively to push climate policy at a time when Americans were anxious about the economy."

This is a striking statement since the main problem facing the economy, insufficient demand, could have been effectively addressed by measures to slow global warming. Insofar as the government spent money on clean energy and/or conservation it would create more demand in the economy and lead to more jobs. In this sense, environmental measures are virtually costless in a period of inadequate demand and high unemployment. It is striking that there is so little recognition of this fact.