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Cheap energy = lots of jobs Expensive energy = fewer jobs

Wednesday/Thursday blog

Energy costs and GDP growth

I looked again at the charts I used in my Monday/Tuesday blog and had a crazy idea – I wondered if the lower a country’s energy costs, the more manufacturing jobs it will attract and the faster that country will grow. Conversely, the higher a country’s energy costs, the more jobs will be destroyed.

I know this will sound ridiculous to the worshippers of Saint Greta and Al Gore and all our net-zero-obsessed politicians, who assure us that net zero will create millions of highly-skilled, highly-paid ‘green jobs’.

We’ll start with China

Here’s China’s energy mix:

China increases its use of cheap, energy-rich coal almost every year.

And here’s China’s share of global GDP

Could there be a connection between these two charts? I wonder.

Now let’s look at India

Here’s India’s energy mix:

Just like China, India burns lots of cheap, reliable energy-rich coal.

Here’s India’s share of global GDP:

Now let’s look at the USA

Here’s the USA’s energy mix:

As you’ll see, the climate-catastrophists have managed to wreck the USA’s coal industry. Here’s the USA’s share of global GDP:

In 1960, U.S. GDP represented 40% of global GDP. Now it’s around 20% a fall of almost half in 60 years.

I realise that correlation does not imply causation, but even a politician should be able to see a pattern emerging.

Comparing  electricity prices

In the UK electricity costs about $0.32 per kw/hr. In the USA it’s much lower at $0.16. But in China at $o.08 per kw/hr, electricity costs a quarter of what we pay in the UK and half the amount American homes and businesses pay. In India electricity costs even less at just $0.07 per kw/hr

https://www.visualcapitalist.com/mapped-global-energy-prices-by-country-in-2022/

I’d quite like some of our politicians to explain to us how UK companies are going to be competitive and get the UK economy growing when British companies have to pay four times as much for their energy than their competitors in China and India.

Come on Rishi! You’re meant to be a financial genius. Please enlighten us as to why it’s good for Britain that our companies are being destroyed by high energy prices largely due to useless governments like yours closing down cheap reliable coal- and gas-fired power stations and replacing them with unreliable, intermittent and ludicrously expensive wind and solar.

2 comments to Cheap energy = lots of jobs Expensive energy = fewer jobs

  • Paul Chambers

    So closing down industry and enforcing net zero turning UK into a virtually closed north Korean society for the existing poor and middle class (soon to levelled down to poor) citizens. Whilst the wealthy tories/labourites like rishi and hunt fly around in private jets and live in city enclaves protected by private security surrounded by crime and starving freezing people. Rather like modern day Bombay.

    How rishi can promote digital identity and britcoin whilst his wife and father in law run one of the largest it outsourcing firms who could potentially benefit from the contracts on offer. Not to mention moderna investment history whilst the uk approves long term contracts for mrna vaccines. Hunt business was bringing overseas students mostly indian and chinese to study abroad.

    It does seem like the dems in the us these people think they are untouchable. They can say anything without being held accountable whilst their actions are often the very opposite.

  • A Thorpe

    Isn’t it more complex than this. Look at the industrial revolution. In the UK we had coal, iron, new technology and cheap labour and we were the first. Technology always spreads so that can be ignored. The USA, China and Russia are the only countries with the energy and raw materials which give them an advantage. I’m not sure how India and the other Asian countries are placed. Americans want high pay and cheap goods and so they have exported jobs to China and Asia, as the graph clearly illustrates. I think Trump understood this but he tried to bring jobs back by subsidising business by taxpayer debt.

    In addition to those factors goods are being made more unreliable and replacement with the latest has become a major theme of modern life. This keeps the profits high. It is the equivalent of telling people to wash their hair and then repeat. Shampoo sales doubled. It has also introduced the expensive recycling business which we have to pay for. The expensive transport of goods and food around the world also adds needless costs. This is the modern economy. It is not about us becoming wealthy, it is about the bankers and global businesses becoming wealthy at our expense.

    Where does the UK fit into this. We no longer have the raw materials. We could have the energy but the government has deliberately destroyed our energy supplies. We don’t have any technological advantage and might even be falling behind considering the useless education system. But in addition we also have an inflated idea of our entitlement to huge pay packets and think that people would buy our expensive goods if we produced them.

    The government thinks that increasing exports will produce growth. They don’t understand that we need to export to be able to import what we don’t have. A lot of that is food. Now we have the completely useless Grant Shapps delivering net zero. I am sure for the first time he will be extremely successful at doing it. I read this morning that the government’s Behavioural Insights Team is developing the brainwashing techniques to convince us that utter poverty is the best future for us.

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