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Obama's Green Deal

Posted on Dec 10, 2008 by Paul White

Barack ObamaSimilar to back in the 1930s when we had the new deal to help create jobs, and get the country out of the great depression.  Obama has a similar plan, but his plan involves green technologies.  The plan is really simple.  By upgrading government buildings ( military, schools, administrative ) with more energy efficent technologies ( lighting, heating, cooling ) we can decrease the long term opporating costs of the government, and at the same time we are creating demand for these new technologies which should increase the number of green jobs.  Your former GM assembly worker might now find themselves working in a factory making solar panels.

From the eyes of a home owner

Home owners are always thinking about saving money.  Last summer there were a couple months where our electric bill was over $350.  A buddy of mine who has a pool says his was over $900.  Anytime I walk into a home depot or Lowes, I am always keeping an eye out for energy saving products.  I even did a little research into what were the cost saving benefits to getting a Wind turbine, or installing some solar panels on my roof.  I watched plenty of videos on YouTube of guys who did the install themself.  Unfortunately the cost is still pretty high.  The biggest problem is it will take 15+ years for the installation to pay for itself with energy savings.  Most homeowners don't say in a house for longer than 8 years before either moving or upgrading to a larger home.  Even with the tax rebates, it still doesn't come close.  The cost of creating your own energy is high.  The cost of saving energy is much lower.  For example If I spend $8k.  I could upgrade my home's AC system to a 18 SEER or 19 SEER system that would cut my energy bills in half.  Savings 1000 KWH costs much less, than trying to generate 1000 KWH with a solar or wind installation.

The logic of Obama's green plan

We all remember Obama on the campaign trail telling Amerians to fill up their tires, to help save on gas.  It would seem that Obama is all about spending a little time and money to make common sense upgrades as a way of saving energy.  Doing things like replacing light bulbs and replacing outdated HVAC systems to newer systems will over time pay for itself.  Maybe the savings won't be seen during Obama's first 4 years but the savings are there.  The great thing about Obamas plan is by doing this upgrade he is increasing the demand for energy efficient products.  This means company's will be selling alot of these products to the government.  By selling more products mean companys can increase production, resulting in having to hire more workers, and also resulting in a lower production cost meaning home owners will be able to buy these products for less than before.

What Obama's green plan really is

Under Democratic presidential nominee Barack Obama's energy plan, greenhouse gases would be reduced by 80% from 1990 levels by 2050. Obama favors solar energy, wind energy and natural gas over nuclear energy and clean coal. The Democratic nominee also would like to raise auto-mileage standards 4% annually and encourage more flex-fuel options for cars.  Obama has made it very clear that he intends to directly tie any automotive bailout to the development of green technologies. CAP's plan calls for a 4% per year increase in fuel-efficiency standards, as well as investment in new battery technology for plug-in hybrids. Automakers that are poised to go forth with fuel-efficient models and companies that deal in battery technology seem like good bets. Moreover, CAP's "Cash for Clunkers" program could easily lead to a wide variety of both blue-collar and white-collar jobs. CAP has proposed a green-infrastructure fund for retrofitting existing public buildings to make them more efficient; furthermore, its "Weatherization Assistance Program" would help homeowners improve their energy consumption profiles. Combined with tax credits for companies that make energy conservation products (like insulation and double-pane windows), this promises a major boost to the construction and home-improvement industries. As hard as it may be to imagine right now, home-improvement and construction industries could actually be hiring in a few months. It would also worthwhile to consider less-prominent companies in products ranging from renewable flooring to energy-efficient lighting, that are poised to emerge.

Who does Obama's green plan hurt?

Energy companies for one.  If they are selling less KWH this means they will be making less money.  Less money means they will lay off employees.  Although I get the feeling that energy companies will lay off fewer employees than will be hired in green industries, so the change is worth it.

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