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European Economists Admit Disastrous Implications of “Green” Policies

Posted on Wednesday, August 2, 2023
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by Ben Solis
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AMAC Exclusive – By Ben Solis

Green

During a rally in Erie, Pennsylvania, last weekend, former President Donald Trump declared, “We are in a country that is consumed by the radical left Green New Deal. Yet everyone knows that the Green New Deal is fake and will lead to our country’s destruction.” Recent data and analysis from Europe, where Green New Deal policies are already in place, proves Trump correct.

One report released by the French government in May, authored by economists Selma Mahfouz and Jean Pisani-Ferry, is particularly striking.

Although Pisani-Ferry and Mahfouz are proponents of a radical “green transition,” their research nonetheless reaches the unavoidable conclusion that the European Union’s aggressive climate agenda – which serves as a blueprint for liberals’ Green New Deal policies in the U.S. – will result in further price increases and higher taxes. Combined, these economic forces are likely to cause a private capital shortage, a phenomenon unseen in the United States since the Great Depression era.

Throughout the 139-page report, Pisani-Ferry and Mahfouz compare the impact of the left’s desired “green transition” in the energy industry to the economic shock seen as a result of the dramatic spike in oil prices in the 1970s. This phenomenon set off an inflationary spiral that saw double-digit percentage price increases in the price of food as well as fuel.

The report concludes that solutions to the supposed climate crisis will have even worse economic ramifications today, as “climate action will increase inflationary risks due to the slowdown in productivity” (translated from the original French here and throughout).

The authors of the report also admit that government-imposed restrictions on investments in profitable fossil fuels enterprises (which the report calls “brown capital”) will limit access to funds throughout the economy, while also forcing markets to effectively subsidize unprofitable enterprises. The resulting capital scarcity will have ripple effects throughout the economy and grind productivity to a halt.

As a result of declining economic activity and decreasing investment, the report continues, governments will likely experience revenue shortages. Therefore, government will have to double its investment in “green” infrastructure – all financed by rapidly ballooning debt – for “several years.” Taxes and energy prices will also increase sharply, with costs being passed on directly to ordinary families.

According to the European Commission’s estimates, this added government investment in the E.U.’s energy sector would come out to between 260 and 380 billion Euros by 2030 – about 1.5 to 1.8 percent of the E.U.’s GDP.

One member of the European Parliament has called those costs “extreme madness,” pointing out that countries like France and Italy already have debt-to-GDP ratios of 112 percent and 144 percent, respectively.

For Pisani-Ferry, Mahfouz, and the rest of the global left, however, all these costs are worth bearing to avoid a looming climate apocalypse. In an exclusive interview with Politico last month, Pisani-Ferry even called on European Union members to relax budgetary constraints on spending (even as inflation remains a persistent problem) in order to ram through his desired policy changes.

But current data suggests that many in the West are already growing weary of the left’s much-touted “energy transition.” According to BloombergNEF, which specializes in “energy transition analysis,” 2022 saw the first ever decline in issuance of “green bonds.” Bloomberg reported “heightened skepticism” about the industry, along with declining financial returns.

One of the factors Bloomberg also cited for the decrease in investment was rising inflation – something which, as Pisani-Ferry and Mahfouz explained, is likely to only become worse as new green policies take effect.

Another key aspect of the left’s environmental agenda, the move from gas-powered to electric vehicles, is also facing serious challenges in Europe. Late last month, the police force for the city of Essex in the United Kingdom declared in a report that EVs pose a “strategic risk” for response units, further saying that no model could satisfy the standards needed for road policing.

The Essex Police report specifically pointed to a shortage of charging stations and long charge times – two other significant downsides of electric cars that Trump also pointed to in his Erie speech.

In a separate news story, a European insurance market specialist also told Italian news outlet Il Sole 24 ORE that, at this point, companies cannot offer insurance policies for an electric car as an emergency services vehicle.

All of these developments in Europe should be a warning for liberals in the United States, who are looking to follow the same path. But instead of being honest about the severe risks of a “green transition,” the Biden administration and its allies in Congress and the media have continued to pretend there are no trade-offs to fundamentally restructuring the U.S. economy.

In some ways, the United States may even find itself in a worse situation than Europe. America’s debt-to-GDP ratio recently crossed 120 percent, and is likely to climb even further in the years ahead. Other factors like the prevalence of car culture in the United States mean that changes like those favored by European liberals would cost Americans even more – thus exacerbating the downstream economic effects.

But without a change in leadership, it seems unlikely that liberals in the United States will heed these warnings and avert certain disaster.

Ben Solis is the pen name of an international affairs journalist, historian, and researcher.

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PaulE
PaulE
10 months ago

Well Fitch this morning just lowered the debt rating of the United States, which is yet another sign that are fiscal house is a mess in Washington. When Moody’s last downgraded the United States under Obama in August of 2011, due to massive runaway spending programs, insane regulations and micro-management of our economy, that was the first red flag that the position of the United States on the global stage and having the global reserve currency that other nations valued and would continue to use was at risk.

Fast forward to today, another August just 12 years later, with another Democrat (admittingly simply a dementia addled puppet being manipulated by those surrounding him) in the White House and nearly Biden’s entire administration composed of Obama era personnel executing a continuation of the same disastrous policies and spending agenda of Obama for the last 2 1/2 years. Well guess what? When you repeat the same ludicrous policies and even take them all to the next logical progression with little to no real pushback, what do you get? Well Surprise, surprise we get downgraded by the other credit agency for essentially the exact same reasons as during the Obama administration. Rad flag number 2.

We are rapidly losing our standing on all fronts in the international community. De-dollarization, where other countries are now openly switching away from use of the U.S. dollar to other currencies is increasing at an alarming rate. Nothing is said of this on the MSM, which is all most of the masses seem to still cling to for any and all “news”. Yet those of used to following the financial markets and a variety of global news sources are acutely awaare of what is happening. Our designation as the global reserve currency is at risk in the not-too-distant future. You can’t bury your head in the sand and hope this all magically goes away, because that is an ineffective strategy for dealing with just about anything.

The article above is highly accurate as I have seen all these things all across Europe myself for almost two decades as the leaders of western European countries have charged headlong into remaking their economies over in the “green” model. It doesn’t work! Economies suffer long pouts of stagflation, the economies of these countries are barely growing at under 1 percent per year, while inflation runs anywhere from 10 to 20 percent in real terms. Black-outs and brown-outs are a regular occurrence, and the use of electricity for anything is becoming a luxury item for most of the average people.

Do I expect this current administration to ever acknowledge the truth and reality of the what the green agenda is? No, of course not. Any Democrat administration sitting in control of the WH or Congress will continue to push for the same agenda, because the green agenda is ONLY about power and control of the masses.

The people of Europe seem resigned to a life of lowering quality of life standards of living and less and less freedom and control over their own lives. Sure, there are spot protests that routinely pop-up, but those in power simply put down those protests with ever-increasing force and a weaponized justice system. That is all coming here as fast as the Democrats can roll out all aspects of it. Many pieces are already in place already as we routinely see. My sense is the vast majority of Americans today may or may not realize what is coming down the road, but they won’t do anything about it until it is too late to undo any of it. Nations die either with a bang or a whimper. My sense is it will be the latter for us.

MAGA 2024
MAGA 2024
10 months ago

Wakeup America————these Marxist Democrats will bankrupt our great country.

kdesq
kdesq
10 months ago

It is not just economic, it is communist control. We all KNOW the climate “crisis” is FAKE. We all know we can’t control squat, but somehow the idiots voting for democrats believe they can control the weather. We are done as the world’s reserve currency in the not very distant future. Once that happens our country and economy are toast. Our inflation of the last two years will look tame compared to what will happen to monetize the debt with no one out there to buy our debt. The rest of this is just fluff when compared to that.

Jeri
Jeri
10 months ago

Unfortunately for way to many humans they will need to suffer severely at the hands of the “greenies”. Must be a miserable life to be that stupid.

anna hubert
anna hubert
10 months ago

Is there one country led by leftists that is an economic success Is there one country led by leftists into which others are trying to immigrate There is an unpleasant reality ahead for our leftists

Rik
Rik
10 months ago

As I constantly say: “I, personally, won’t accept Climate Change policies UNTIL China, Russia and North Korea are promoting them too! So until then, HELL NO!!!

Kyle Buy you some guns,and learn how to shoot
Kyle Buy you some guns,and learn how to shoot
10 months ago

Some people go into hysterics, and the sheep follow. People like Greta Thornburg has got S for braines Kyle L.

Robert Zuccaro
Robert Zuccaro
10 months ago

Every summer, all I hear on the “news” is “record temperatures… record temperatures” so I’m guessing it must be at least 180 degrees out… the government took away Native American’s horses to control their movements; now they’re at it again! I’m paying upwards of $4.79/gallon CASH so I don’t travel much. Mission accomplished, right, Democrats?

Stephen Russell
Stephen Russell
10 months ago

How many EVs in EU aside Norway
How many chargers commercial in EU
Only France has Nuclear power

Michael Lewis
Michael Lewis
10 months ago

Was Biden elected emperor? If so, I missed the referendum:
Biden nominee who failed Senate confirmation still leading admin’s crackdown on gas cars
From msn.com/en-us/news/politics/biden-nominee-who-failed-senate-confirmation-still-leading-admin-s-crackdown-on-gas-cars/ar-AA1eGluM?ocid=msedgdhp&pc=U531&cvid=b267d73b9b534c2caabe3a4c35d6f8aa&ei=112
What happened to free markets and consumer choice?
Surely our representatives in Congress and the Senate can stop this lawlessness, before the election?

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