Commentary Magazine


Topic: regulations

The Right Climate to Torpedo the Economy?

You might think that with a historically weak recovery and, as John Steele Gordon wrote this morning, worries about the Federal Reserve’s actions affecting the stock market, this is a time when President Obama would be focusing like a laser beam on the economy. But you’d be wrong about that. As Ross Douthat noted yesterday in the New York Times, the administration’s second term priorities are at odds with those of the public. Instead of dealing with health care costs and entitlement reform (the issues most Americans consider the highest priorities), the president spent the start of his term hyperventilating about gun control. After switching to immigration reform for a while (something that I think is worth doing but is certainly not as important as cleaning up the mess that ObamaCare is about to create or reforming entitlements), tomorrow he will perform another pivot and unveil a major plan to lessen the effects of climate change in a speech at Georgetown University.

As he said over the weekend in a video released by the White House, it will include far-reaching measures that will introduce new limits on carbon dioxide emissions from power plants among other unspecified ideas that will largely be put into force by executive order rather than legislation. In one fell swoop, Obama will not only gratify his liberal base by pandering to their obsessions, he will also undertake a vast expansion of executive power in which the executive branch will assume near dictatorial proportions under the rubric of regulation. Whatever one may think about the science behind this plan—and there is very little sign that the president is operating on anything but on the basis of his ideological biases—there is no question that any plan that will hamper power production on this scale will have a deleterious impact on the chances that the country can sustain its economic recovery by raising the costs of energy and killing jobs. That he will do so in a manner that ought to set off alarm bells about the separation of powers and will generate a blizzard of lawsuits that could tie up his plan for years only illustrates the poor judgment being exhibited by the president.

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You might think that with a historically weak recovery and, as John Steele Gordon wrote this morning, worries about the Federal Reserve’s actions affecting the stock market, this is a time when President Obama would be focusing like a laser beam on the economy. But you’d be wrong about that. As Ross Douthat noted yesterday in the New York Times, the administration’s second term priorities are at odds with those of the public. Instead of dealing with health care costs and entitlement reform (the issues most Americans consider the highest priorities), the president spent the start of his term hyperventilating about gun control. After switching to immigration reform for a while (something that I think is worth doing but is certainly not as important as cleaning up the mess that ObamaCare is about to create or reforming entitlements), tomorrow he will perform another pivot and unveil a major plan to lessen the effects of climate change in a speech at Georgetown University.

As he said over the weekend in a video released by the White House, it will include far-reaching measures that will introduce new limits on carbon dioxide emissions from power plants among other unspecified ideas that will largely be put into force by executive order rather than legislation. In one fell swoop, Obama will not only gratify his liberal base by pandering to their obsessions, he will also undertake a vast expansion of executive power in which the executive branch will assume near dictatorial proportions under the rubric of regulation. Whatever one may think about the science behind this plan—and there is very little sign that the president is operating on anything but on the basis of his ideological biases—there is no question that any plan that will hamper power production on this scale will have a deleterious impact on the chances that the country can sustain its economic recovery by raising the costs of energy and killing jobs. That he will do so in a manner that ought to set off alarm bells about the separation of powers and will generate a blizzard of lawsuits that could tie up his plan for years only illustrates the poor judgment being exhibited by the president.

Obama signaled that he would prioritize his beliefs about the climate in his second inaugural speech, so no one should be surprised by his decision to gamble his dwindling supply of political capital on an issue that is liable to hurt rather than help the economy. The president will, of course, argue that his green plan is good for the economy in the long run and tout his belief that more regulations will help transform the country and create jobs in industries that provide alternatives to the burning of fossil fuels. But the country has already been down this road in the first term as Obama’s stimulus boondoggle provided cash for Solyndra and other “green” corporations that proved to be cash cows for the president’s major contributors but a disaster to the taxpayers that were fleeced to bolster companies that couldn’t stand on their own.

The administration’s defense of this decision to bypass Congress will be to claim that the legislative branch has failed to act. But there is a reason why both Republicans and Democrats have been reluctant to implement the sort of Christmas tree of regulations that will be presented tomorrow: it is likely to hurt an already skittish economy. The high-minded gloss of idealism and gloom and doom predictions about our future that fuel the president’s climate push will be used by liberals to dismiss objections about the impact on the economy of this project. But Obama and his cheerleaders in the liberal media—who have been urging him to usurp power in this manner to further the global warming agenda for years—the danger that adding on new layers of federal regulations to an industry already sinking under the weight of government rules is real.

It should also be noted that given the anger on Capitol Hill and among the electorate about a trio of scandals that center on abuse of government power, the notion that the president would seek to govern on his own in this manner is curious. One would think the administration would be wary of feeding suspicions about extra-constitutional usurpation of power right now. But, like worries about the economy, concerns about the Constitution are always going to run second to ideology in the Obama White House.

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