Are Solar Power Plants Key To Job Growth?

President Obama has committed $2 billion to new solar initiatives designed to turn us to clean energy and create jobs. Clean energy is justifiable, but what about job claims?

The Great Recession might as well be called a second Depression for all the damage it has done. Real unemployment is believed to be in the 16 to 17 percent range. Businesses are hurting and states are madly passing tax increases in an effort to cover revenue gaps. The federal deficit is now up over $13.2 trillion and growing every day. All and all, it isn’t a pretty picture we’ve painted.

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The key to the economy is job growth. Job growth means companies are doing well. It also means that money is being circulated from banks to companies to employees and throughout the economy. This, in turn, generates tax revenues, which states and the federal government desperately need.

The real question, however, is can we equate investments in green energy with job growth? It is a favorite line of President Obama, but the numbers seem to suggest something else entirely. Consider the $2 billion in grants the President has announced. The money is going to two companies - Abengoa Solar and Abound Solar Manufacturing. Each will build solar facilities to generate electricity or solar panel manufacturing plants.

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The programs sound like a job generator, but are they? The President believes the projects will produce 3,300 construction jobs. Once they are up and running, it is believed 1,500 permanent jobs will be created. For $2 billion dollars? That doesn’t seem a lot to me.  It equates to roughly $416,000 per job produced and most of them are only temporary while construction is going on.

The economy has lost over 8 million jobs during the Great Recession. There are many reasons for promoting solar power as part of the energy production in this country. I am not sure job creation is really a strong one.

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