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Collateral Casualties of Clinton’s War on Coal…Steel Industry and Manufacturing

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With all this talk about destroying the coal industry, no one seems to grasp the long term massive damage to the United States economy it would cause.  The US steel industry will disappear entirely.  Besides the fact that steel manufacturing needs huge amounts of energy to produce molten metal, the cost of replacing coal with renewable energy will increase the cost of manufacturing steel by a ratio of six fold.  Add to that the generous subsidies handed out by the US government would rise exponentially.

Secondly, are you aware of how steel is manufactured?  Metallurgical coal is converted to coke and coke is added to iron ore makes steel.  That means the steel industry dies and the US will be forced to import all steel needed to manufacture cars, appliances, roofing and a veritable cornucopia of other products needed by Americans.  No coal, no steel.  It’s very simple and easy to understand.

General manufacturing will also be permanently  harmed by Hillary’s war on coal.  For ten years I worked at USP, a company that makes pallet racking.  We supplied racks to Home Depot and to Costco, including the many stores they opened in Taiwan.  I saw first hand the amount of electricity needed in manufacturing the racks.  The columns start out as flat rolls of steel and since the steel can not be bent in one stroke, a series of rollers are used, each one bending the steel a little more until it forms the columns needed for the support of the systems.  There is also a punch die that makes the holes used to fasten the shelves.

Throughout the plant are heavy duty punches and forms used to make the accessories needed to complete the racking system.  Each of these machines need massive amounts of electricity to create the force to operate 30 ton presses.  The problem is the competition is fierce and profit margins are lower than in many other industries.  Increasing the cost of electricity 6 fold would put companies like that out of business.  We will be forced to buy all steel and even finished products from overseas, but no one will have jobs to buy those products.  This is wealth redistribution on a massive scale.

Is this just a theory or a reality?  Won’t green energy create millions of jobs?  Will it really improve the environment?

It’s not a theory.  It’s no secret that Spain is in a financial bind they may never get out from under.  But the question is what happened?  Long before Obama, Spain decided that they needed to replace fossil fuels with renewable energy.  They devised a plan that is less radical than either Obama’s or Clinton’s.  Dr. Gabriel Calzada Álvarez, with King Juan Carlos University in Madrid was commissioned to study why Spain’s economy crashed and the bottom line is expensive renewable energy.

Calzada found that for every four jobs created in the green energy field, cost Spain nine jobs.  As if that weren’t bad enough, only one in ten green energy jobs was permanent.  Manufacturers fled Spain in the search for cheaper energy and took their jobs with them.  The result was massive unemployment and they have never recovered from the job losses.

Spain Unemployment Rate

So, now we see that job losses are not a theory and that green energy DOES NOT create new net jobs, but actually destroys jobs.

Now, on to the environment.  The United States has the toughest environmental laws on the books and we have cut emissions drastically thanks mainly to the fracking industry and not government mandates.  Now, suppose we can no longer manufacture steel.  Someone has to pick up the slack.  Of course no other country with our draconian regulations can stand in to fill the breach, so who would?   Countries like China and India with lax environmental regulations.  Also smaller countries such as Indonesia, where the regulations are practically nonexistent.

Yet, have you heard one liberal mention this?  Of course not, because the environment is not really what they are concerned about.  They want the rich United States to redistribute their wealth to all the poorer countries we have exploited in order to become wealthy.  World wide emissions would drastically increase.  And what is the preferred fuel of choice in these countries?  Coal.

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