Aug. 26, 2009
Renowned Economist Speaking in Huntington Predicts Recession Not Yet Complete
Stimulus at least Partially Wrongly Handled
By Tony Rutherford
Huntingtonnews.net Reporter
Huntington, WV (HNN) – Economist Dr. Margo Thorning has testified before Congress and came to Huntington, Tuesday, August 25, to detail potential impacts of the Cap and Trade (a.k.a. Waxman Markey Bill) in West Virginia.
Thorning told the Cap and Trade Forum Audience that the state would see a loss of 8,200-11,100 jobs, decreases in disposable household income, tremendous jumps in energy prices that would particular imperil low income families and the WV budget.
Economic impacts of the legislation to allegedly reduce greenhouse gas emissions, can be downloaded in PDF form, Click HERE for Part A, and HERE for Part B.
“The entire budget for education we stand to lose,” as well as a 75% reduction in coal production. The legislation would bring “more severe lifestyle changes in WV [due to its dependence on coal],” Dr. Thorning said.
She questioned the timing of this legislation which would add “uncertainty” to an “already shaky economy.” However, the so-called sale of emission quotas would “produce a Wall Street effect, like trading in pork bellies.”
After the panel discussion, I asked her about the current status of the recession recovery.
“We’re still in shaky territory,” the chief economist for the American council for the D.C. based Capital Formation think tank said. “The unemployment rate is still about nine point five percent, more home owners are underwater [owe more on their mortgages than the value of their houses] than six months ago, there are more foreclosures. The housing market has not stabilized.”
She revealed that “there is some new construction, but existing homeowners are not seeing any real improvement. Until that changes, people's confidence is going to be so shaky that I don’t think we will get out of this recession. [Consumers] will not spend money. If they have lost 30% (or more of the value of their house), they are naturally going to save more. The saving rate is [now] about 7%. Retail sales are [still] sluggish. It’s more of a housing crisis.”
Predicting little improvement until a resolution of the housing crisis, the economist, who has testified before various House and Senate committees, stated, “ if we layer on a climate change bill that adds to the cost of living and doing business that will retard our ability to get out of this recession.”
Frequently quoted in the New York Times, Wall Street Journal, and Financial Times, Dr. Thorning acknowledged that the Obama administration has “tried” to get us out of the recession. “The stimulus bill passed in March had some good components [such as] extending unemployment benefits and helping the states.” Unfortunately, most of the funds from the stimulus will not be spent until 2010 or 2012. “The $783 billion is adding to the deficit ,but it is not stimulating the economy. I would have structured the bill differently. I would have gotten money right into people’s hands rather than postponing it. I would helped the states [directly]; I think that’s important. I would not have put these long delayed infrastructure projects in place.”
Thorning has testified as an expert witness on capital formation and environmental issues before various U.S. congressional committees, including the Senate Environment and Public Works Committee, the Senate Energy and Natural Resources Committee, the Senate Commerce, Science and Transportation Committee, the Joint Economic Committee, the Senate Governmental Affairs Committee, the House Ways and Means Committee, the House Commerce Committee, and the House Committee on Government Reform. She recently made a presentation "Investing in Energy and Industrial Development: Challenges and Opportunities" at a UN Commission on Sustainable Development meeting. She also served on DOE's Electricity Advisory Board's Subcommittee on Standards of Conduct and Corporate Practices. She also has testified before the Senate of Canada on that country's proposals for tax reform.
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Renowned Economist Speaking in Huntington Predicts Recession Not Yet Complete
Stimulus at least Partially Wrongly Handled
By Tony Rutherford
Huntingtonnews.net Reporter
Huntington, WV (HNN) – Economist Dr. Margo Thorning has testified before Congress and came to Huntington, Tuesday, August 25, to detail potential impacts of the Cap and Trade (a.k.a. Waxman Markey Bill) in West Virginia.
Thorning told the Cap and Trade Forum Audience that the state would see a loss of 8,200-11,100 jobs, decreases in disposable household income, tremendous jumps in energy prices that would particular imperil low income families and the WV budget.
Economic impacts of the legislation to allegedly reduce greenhouse gas emissions, can be downloaded in PDF form, Click HERE for Part A, and HERE for Part B.
“The entire budget for education we stand to lose,” as well as a 75% reduction in coal production. The legislation would bring “more severe lifestyle changes in WV [due to its dependence on coal],” Dr. Thorning said.
She questioned the timing of this legislation which would add “uncertainty” to an “already shaky economy.” However, the so-called sale of emission quotas would “produce a Wall Street effect, like trading in pork bellies.”
After the panel discussion, I asked her about the current status of the recession recovery.
“We’re still in shaky territory,” the chief economist for the American council for the D.C. based Capital Formation think tank said. “The unemployment rate is still about nine point five percent, more home owners are underwater [owe more on their mortgages than the value of their houses] than six months ago, there are more foreclosures. The housing market has not stabilized.”
She revealed that “there is some new construction, but existing homeowners are not seeing any real improvement. Until that changes, people's confidence is going to be so shaky that I don’t think we will get out of this recession. [Consumers] will not spend money. If they have lost 30% (or more of the value of their house), they are naturally going to save more. The saving rate is [now] about 7%. Retail sales are [still] sluggish. It’s more of a housing crisis.”
Predicting little improvement until a resolution of the housing crisis, the economist, who has testified before various House and Senate committees, stated, “ if we layer on a climate change bill that adds to the cost of living and doing business that will retard our ability to get out of this recession.”
Frequently quoted in the New York Times, Wall Street Journal, and Financial Times, Dr. Thorning acknowledged that the Obama administration has “tried” to get us out of the recession. “The stimulus bill passed in March had some good components [such as] extending unemployment benefits and helping the states.” Unfortunately, most of the funds from the stimulus will not be spent until 2010 or 2012. “The $783 billion is adding to the deficit ,but it is not stimulating the economy. I would have structured the bill differently. I would have gotten money right into people’s hands rather than postponing it. I would helped the states [directly]; I think that’s important. I would not have put these long delayed infrastructure projects in place.”
Thorning has testified as an expert witness on capital formation and environmental issues before various U.S. congressional committees, including the Senate Environment and Public Works Committee, the Senate Energy and Natural Resources Committee, the Senate Commerce, Science and Transportation Committee, the Joint Economic Committee, the Senate Governmental Affairs Committee, the House Ways and Means Committee, the House Commerce Committee, and the House Committee on Government Reform. She recently made a presentation "Investing in Energy and Industrial Development: Challenges and Opportunities" at a UN Commission on Sustainable Development meeting. She also served on DOE's Electricity Advisory Board's Subcommittee on Standards of Conduct and Corporate Practices. She also has testified before the Senate of Canada on that country's proposals for tax reform.
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