NAM’s Keith McCoy criticizes proposed energy legislation, which could result in loss of five million jobs and a decline in national GDP of more than $1 trillion.
The National Association of Manufacturers (NAM) spoke out recently against proposed Congressional energy legislation, highlighting the projected loss of nearly five million jobs and 4 percent GDP reduction by 2030 expected to result from the bills’ implementation.
A study released by Charles River Associates (CRA) last week examined the potential economic impacts of the energy legislation currently under consideration by the U.S. Congress.
“The provisions analyzed by the CRA report would require American families and businesses to aggressively replace proven energy sources – such as oil, coal and natural gas – with emerging alternative and unproven sources, which would likely lead to higher energy costs,” Keith McCoy, NAM vice president for energy and resources policy, told U.S. Industry Today. “According to the study, by 2030 almost five million jobs could be lost; the average American household’s purchasing power could drop by $1700; aggregate business investment in the U.S. could drop by as much as $220 billion; U.S. national GDP could decline more than $1 trillion; and the costs of petroleum products could more than double.
“While investing in new energy sources and continuing to boost efficiency gains will play critical roles in meeting our country’s energy demands in the future, we cannot allow Washington to establish mandates that compromise our ability to produce the affordable and reliable energy necessary to maintain the long-term health of the U.S. economy and the prosperity of American workers.”
According to NAM, the study assessed provisions in the bills, including a mandatory oil savings program, a renewable fuels standard, oil industry tax increases, a “price gouging” provision, a renewable portfolio standard for the electric power sector, more stringent CAFE standards and various proposed access restrictions on domestic production of oil and natural gas.
“The CRA study vindicates what the NAM has been saying about proposed Congressional energy legislation: in their current form, these bills are bad for manufacturers and bad for the U.S. economy,” says McCoy.
Energy intensive manufacturing would be among the sectors disproportionately affected by the bill, according to the study.
For more information on NAM energy policy, visit www.nam.org/energy .
The National Association of Manufacturers is the nation’s largest industrial trade association, representing small and large manufacturers in every industrial sector and in all 50 states. Headquartered in Washington, D.C., the NAM has 11 additional offices across the country. Visit the NAM’s award-winning web site at www.nam.org for more information about manufacturing and the economy.