http://money.cnn.com/2012/03/29/news/economy/green_jobs/index.htm?iid=HP_LN
The Federal Government has reported 3.1 million U.S. are "Green Jobs." Contrary to popular belief, green jobs are not only jobs involving green technology. Some of the jobs listed include thrift stores and school buses. These jobs are subsidized by the government and are considered "Green" in President Obama's plan to create 5 million green jobs.
The Federal Government's subsidizing of green jobs (the real ones, like building solar panels, not the thrift stores. That sounds like political maneuvering.) is an example of the government acting to reduce externalities. It also shows some slight socialism in the markets. By subsidizing "green industries" the government is allowing the businesses to survive where the market might otherwise dictate that the businesses fail. It is not directly dictating what should be produced, but it is making it easier for some companies to do so.
6 comments:
It is good to see a touch of socialism here and there in America. Our Government officers are elected for a reason, because we thought that they could help to improve our country, and I like the fact that they are intervening in the market a little.
I would definitely agree that these subsidies are ultimately beneficial to the country as a whole. Many of these "green" focused companies probably would go out of business if it was not for government aid because green technologies are often more expensive then their counterparts. Not only do these green jobs promote growth in the economy, but they also help to keep our country cleaner and healthier, what is the price of a clean nation?
while this is an example of the government subsidizing some jobs the U.S I don't feel this is an example of a socialist practice as much as it is just dealing with an externality.
It should be noted, however, that this type government involvement does not always work long term. For example, Solyndra, a government-backed solar company, failed this past fall. It is impossible for governments to predict this, of course, but I wonder how the Solyndra company was chosen in the first place.
Whether this is a touch of socialism or simply dealing with externalities, I think it is awesome. Eventually, I hope to have one of these jobs in order to promote a better environment. If we continue to increase these jobs, more people can become aware of how important it is to take care of the environment.
Government subsidies are very important in creating new markets and businesses. Looking at this article it shows how government involvement in business can be a sticky situation as it is very tough for the government to remove these subsidies to and build a market that is free of government involvement. How long will it take for "green jobs" to become normal jobs which do not need a government subsidy.
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