Research Briefing

Even As Obama Touts Manufacturing Jobs In Ohio, His Administration Is Busy Manufacturing Job Losses For Buckeye State Industries

OBAMA HEADS TO OHIO “STEEL MANUFACTURING COMPANY” TO TOUT STIMULUS PROGRAM. “Obama's official schedule calls for him to visit on Tuesday the Vallourec and Mannesmann (V&M) Star factory in Youngstown, Ohio,… a ‘steel manufacturing company.’” (“Obama To Visit Factory That Makes Pipes For Oil Industry,” Agence France Presse, 5/15/10)

OBAMA ADMINISTRATION PLANS TO IMPOSE CAP-AND-TRADE ENERGY TAX,

WHETHER CONGRESS WANTS TO OR NOT

Sen. John Kerry (D-MA): “The Obama Administration Has Again Reminded Washington That If Congress Won’t Legislate, The EPA Will Regulate…” Sen. John Kerry: “[T]oday we went from ‘wake-up call’ to ‘last call’ on the urgency of senate action on comprehensive energy and climate legislation.  The Obama administration has again reminded Washington that if congress won’t legislate, the EPA will regulate…” (Sen. John Kerry, “Kerry: EPA Final Ruling Underscores Urgency For American Power Act,” Press Release, 5/13/10)

Obama Using EPA To “Prod” Congress Into Passing Obama’s National Energy Tax. “A day after Sens. John Kerry, D-Mass., and Joseph I. Lieberman, I-Conn., rolled out their long-awaited climate change legislation, the white house tried to prod lawmakers by reminding them that if they don’t act soon, the executive branch will… The EPA unveiled a rule Thursday setting out definitions for its authority to control carbon pollution from power plants and factories.” (Coral Davenport, “Prodding Lawmakers On Climate Change, EPA Issues A ‘Tailoring’ Rule,” CQ Today, 5/13/10)

OHIOANS HAVE ALREADY REJECTED NEW JOB-KILLING, GLOBAL WARMING TAXES…

Ohio Senate Passed Resolution Opposing “Cap-And-Trade” Last Year. “The Ohio Senate on Tuesday adopted a resolution opposing Barack Obama’s legislation to implement a cap-and-trade emissions trading system… The Ohio Senate resolution was sponsored by Chris Widener, R-Springfield, who had 19 co-sponsors.” (Carl E. Feather, “Resolution Opposing Cap And Trade Adopted By Ohio Senate Tuesday,” The Star Beacon (OH), 7/1/09)

• Resolution Stated That Because Ohio Receives More Than 85 Percent Of Its Energy From Coal, “Cap-And-Trade” Program Would Result In “Massive Increases For All Consumers.” “The resolution states that Ohio receives more than 85 percent of its electricity from coal… ‘Thus, the cap-and-trade program will result in massive increases for all consumers because the cost to produce electricity from coal will be markedly higher,’ the resolution states.” (Carl E. Feather, “Resolution Opposing Cap And Trade Adopted By Ohio Senate Tuesday,” The Star Beacon (OH), 7/1/09)

Sen. Sherrod Brown (D-OH) Concerned New “Cap-And-Trade” Bill Hurts Competitiveness Of American Manufacturers. “Sen. Sherrod Brown (D-Ohio) a leading manufacturing advocate, said Wednesday that the climate bill needs improvements to bolster industrial and consumer interests… ‘We must do more to ensure that it promotes the competitiveness of American manufacturers, and provides more assistance to the consumers, industries, and states that would be most affected by the bill,’ Brown said in a statement.” (Jordan Fabian, “Sherrod Brown: Climate Bill Needs Improvement,” The Hill, 5/12/10)

… BECAUSE NEW ENERGY TAXES WOULD HIT STATES LIKE OHIO THE HARDEST

Obama’s “Cap-And-Trade” Will Hurt Rural And Midwest States Most. “Cap and tax will most hurt the rural and Midwest states that most rely on coal-fired power and heavy manufacturing. Middle-American Senators aren't about to rush through a huge new tax on carbon energy—e.g., their constituents—that will largely flow to the wealthier coasts, even if it is done in the name of saving the planet while the here-and-now economy is still sputtering.” (Editorial, “Cap and Tax Delay,” The Wall Street Journal, 9/2/09)

Job Losses In Ohio Alone On Account Of “Cap-And-Trade” Could Amount To More Than 111,000 By 2035. “As the economy adjusts to shrinking gross domestic product (GDP) and rising energy prices, employment will take a big hit in Ohio. Beginning in 2012, job losses will be 62,595 higher than without a cap-and-trade bill in place. And the number of jobs lost will only go up, increasing to 111,989 by 2035.” (David Kreutzer, et. al., “Impact Of The Waxman-Markey Climate Change Legislation In Ohio,” The Heritage Foundation, 8/19/09)

And Cap-And-Trade Legislation Would Reduce Ohio’s “Gross State Product By $17.96 Billion In 2035.” “Implementing Waxman-Markey would put a chokehold on Ohio's economic potential, reducing gross state product by $17.96 billion in 2035.” (David Kreutzer, et. al., “Impact Of The Waxman-Markey Climate Change Legislation In Ohio,” The Heritage Foundation, 8/19/09)

• By 2035 Electricity Prices Would Rise An Additional “$1,091.47 And Their Gasoline Prices Rise By $1.40 Per Gallon” On Account Of Cap-And-Trade. “By 2035, Americans living in the state of Ohio will see their electricity prices rise by $1,091.47 and their gasoline prices rise by $1.40 per gallon solely because of Waxman-Markey.” (David Kreutzer, et. al., “Impact Of The Waxman-Markey Climate Change Legislation In Ohio,” The Heritage Foundation, 8/19/09)

The Two Largest Manufacturing Sectors In Ohio Would Face Most Severe Consequences Of Cap-And-Trade. “The current two largest sectors, chemical manufacturing and transportation manufacturing, show decreases in output of 6.1% to 6.7% and 8.0% to 8.5%, respectively in 2030. All manufacturing sectors will suffer output losses of between 5.4% and 6.0% by 2030, while output from energy intensive sectors falls between 10.7% and 11.7%.” (Press Release, “Economic Impact On The State From The Waxman-Markey Bill, H.R. 2454 Proposed Legislation To Reduce Greenhouse Gas Emissions – Ohio,” National Association Of Manufacturers, 2009)

High Energy Costs Felt Especially By Low Income Families. “The impacts of W/M will be felt especially by the poor, who spend a greater share of their income on energy and other goods than other income brackets. By 2030, higher energy prices mean that low income families in Ohio (with average incomes of $13,725) will spend between 18.9% and 20.1% of their income on energy…” (Press Release, “Economic Impact On The State From The Waxman-Markey Bill, H.R. 2454 Proposed Legislation To Reduce Greenhouse Gas Emissions – Ohio,” National Association Of Manufacturers, 2009)