Let’s say you are an average household with an income around $100,000/yr who has an increase in electricity rates from $300 to $500 due to Joe Biden’s new national energy policy known as the Green New Deal. That’s $200 more per month for this initial economic/energy “transition” moment.
That extra $200/month equates to $2,400 per year.
That $2,400 per year is static economic activity. Meaning nothing additional was created, and nothing additional was generated. The captured $2,400 is simply an increase in the price of a preexisting expense.
Take that expense and expand it to your community of 100 friends and family households. The $2,400 now becomes $240,000 in cost that doesn’t generate anything. $240,000 is removed from the community economy. $240,000 is no longer available for purchasing other goods or services within this community of 100 households.
The economic purchasing power of the 100-household community is reduced by $240,000 per year.
Take that expense and expand it to your county of 10,000 households. Now you are reducing the county economic activity by $24 million. In this county of 10,000 households, $24 million in economic transactions have been wiped out. Meals at restaurants, purchases of goods and services, or any other spending of the $24 million within the county of 10,000 households (approximately 25,000 residents) has been lost.
Now expand that expense to a larger county, quantified as a mid-size county, of 50,000 households. The mid-sized county has lost $120 million in household economic activity, simply to sustain the status quo on electricity rates. Nothing extra has been generated. $120 million is lost. The activity within the county of 50,000 households shrinks by $120 million.
Expand that expense to a large county of 100,000 households, and the lost economic activity is $240 million.
Expand that expense to a small state of 1 million households (2.5 million residents), and the lost economic activity is $2.4 billion.
Expand that expense to a state with 5 million households (approximately 12 million residents) and the economic cost is $12 billion in lost economic activity unrelated to the expense of maintaining the status-quo on electricity use. This state loses $12 billion in purchases of goods and services, just to retain current energy use.
These examples only touch on household expenses. The community, county and state business expenses for offices, supermarkets, stores, etc. are in addition to the households quoted.
Meanwhile the Gross Domestic Product (GDP) of the community, county and state, remains static because the GDP is calculated on the total value of goods and services generated in dollar terms. The appearance of a static GDP is artificial. In real Main Street terms, $12 billion in economic activity is lost, but the price or increased value of electricity hides the drop created by the absence of goods and services purchased.
Fewer goods and services are purchased and consumed. However, statistically the inflated price of electricity gives the illusion of a status quo economy.
Now expand that perspective to a national level and you can see our current economic condition.
They never intended for ALL of us to enjoy the new Utopia they’re creating (with our money, sweat, and blood).
They know it’s not possible. Only the Elites would get the EV’s, the new apartments, the best toys and electronic devices.
Their Green world fences off the haves from the have-nots. Just like the old Soviet Union social ladder operated.
“You will own nothing and be happy, damn it! We built you a boondoggle mass transit train system in your crowded, violence-ridden hellhole. Ride THAT plebeian and be grateful we allowed you to heat your home this Winter. You don’t get to have your own EV. What were you thinking??? ”
The Biden Domino effect clearly and accurately explained by SD.
It’s mind boggling that millions of Americans and similarly doltish citizens in Canada and Europe, that will be facing similar avoidable hardships, are still supporting the politicians that are fueling this carnage rather than supporting their former reliable energy producers.
The “Destroy America party” or Democratic Party as some still ludicrously refer to it; seems to be leading the world down this perilous dystopian path. I liked the USA much better when it was the beacon of freedom and hope.
Rome dominated their world for almost 1000 years because there wasn’t another force that could beat it. It failed and weakened from within and the barbarians ended their reign. If the USA was comparable to Canada in size and strength in 1940 and an unhinged Hitler had not ensured that the Barbarossa invasion of Russia would fail, the western world might still be dominated by the 3rd Reich and the East by Japanese militarism.
If the West’s politicians succeed in permanently weakening their countries while China strengthens, will it dominate for a 1000 years? Just pondering.
it failed and weakened after it started to integrate some of the barbarians into their armed forces and train them up…..can you say ILLEGAL ALIENS
Not sure how China strengthens if their factories start shutting down by the thousands because the west’s demand
for their products drops off to little or nothing. Millions will be laid off, loans will go unpaid.
If the west falls, China falls with it.
Viva 🇲🇽 Mexico!! Fossil Fuels Forever!!
What do you call an “economic migrant” with no arms and legs stuck in the middle of the Rio Grande River on his way to join the FSA(Free Stuff Army)?
Maybe you call him TROLL?
I would not worry about China with an empty belly and in the cold of winter. China will become a very distant memory to the one famished. Some people think they will be musing about geopolitics if the NWO gets its way. There would not be a “weakening”; there will be a destruction and We the People envisioned at the bottom, in the ruble. An old saying, The wild cat in the chamber is to be more feared than a lion in a distant desert.
Thank you for your pointed description of where we are headed.
China appallesour DNC politicians every day.
I have to “qualify” the complaints of the lack of viability of solar power.
The reason solar power plants can’t work is because it’s another example of what I recently posted (under my previous username)……..
The solar power scam is the same as the student loan scam is the same scam as the mortgage bailout scam in 2008, loan money to people who are unlikely to repay it and then dump the burden onto the taxpayer.
The solar plants are built with gov’t backed loans that are approved when the solar operators provide purchase agreements with energy brokers agreeing to buy electricity at a price that’s lower than is possible. When the plant is completed, the solar plant tells the brokers that they can’t meet the price and the brokers exercise their exit option. The plant goes into bankruptcy, the “investors” walk away with money and the taxpayers get the bill.
If you want an example, look at the solar plant in Tonopah, NV, in bankruptcy about 24 hrs after commissioning.
They were building a plant in my town and burnt millions in taxpayer backed loans but after two years, they hadn’t turned a shovel of dirt but all the money was gone. They left town at that point.
The problem is not with solar but the fact that big business and their cronys in gov’t can’t run anything with some kind of fraud sucking the money out of it.
I am where solar can work. The town is 525 sq/mi and has a population density of 2.5 persons per sq/mi. Lots of open land, I have several acres and the sun most of the year is brutal.
I can put photovoltaic in my yard (no zoning, permits or tax assessment here) for $10,000. in an area of about 30’x30′ and it would run my house, well, and some light welding .
The panels have a 25-30 year output warranty, the batteries have less, maybe 8-10 years so if I estimate a life of 10 years, that’s $1,000/year, $83./mo total. That works.
The only reason that I haven’t done it is that the corruption here is so bad in everything, especially medical, that I’m looking to move to another state. Wyoming sounds nice.
The problem is the fraud and theft of money by big business and gov’t.
“The problem is the fraud and theft of money by big business and gov’t.” – But, there it is, and it will continue and grow.
So now the money itself is the problem. They’re going to debase it, which means, if you have any, they’re going to continue to steal it’s “value”, it’s purchasing power from you. You’ve no choice but to divest yourself of it, as best you can, before they do.
You could buy a BIG storage tank and fill it with fuel. That will retain it’s value. But it doesn’t age well, takes up alot of space, and there are legal issues that can be hard to hide.
Solar is a similar investment. Not all, but much of the massive energy consumed mining the materials and manufacturing the parts will be returned over coming years. A store of energy.
Batteries are the weakest link. I doubt they can still be had at a sane price (nickel is a semiprecious metal), but NiFe batteries have a *very* long life (uncertain). Jay Leno has an electric car built by Thomas Edison that is still running on the original batteries (alkaline electrolyte must be changed out periodically). Otherwise, cheap short-lived PbZn, more expensive longer lived Li varieties, etc. A solar system can still function well with completely shot batteries, while the sun shines. Not much use for lighting and freezers, but most other things, like well pumps and shop tools.
https://townhall.com/tipsheet/miacathell/2022/08/30/biden-admin-solar-panels-cost-n2612122
This article ties in nicely with this subject. I am a solidly, middle-class, person and I have always felt that these green energy credits are stealing from the middle-class to subsidize rich people.
That means the subsidies are stealing money from the economy too. Because my taxes are higher so that a rich person can get a break on his solar panels, I will eat out less, which impacts other middle-class people.
But we know that they (these utopian statists) don’t care, because the bottom line is power, and not the energy kind.
These are likely the steps they are taking to take control of housing zones. Projects in every suburban area. Build Back Broke.
…..and you will be happy!!
Not me. I have successfully and thoroughly spoiled myself obtaining things I don’t really need.
And I’m very accustomed to that behavior.
Well the nice thing about it is Democrats will suffer too. They may still have money being grifters, welfare recipients, and government workers but they’ll have nowhere to go to enjoy it as restaurants, bars, movie theaters, malls, etc. will be closed. It will also affect vacation spots – do all the casinos in Vegas survive? How about cruise lines and all-inclusive resorts?
A tax by any other name. Inflation or an arbitrary increase in prices is effectively a tax. It is the only way a government can balance the books when it is intent on spending what it does not have in its cash account. The debt being issued must be purchased with cash by someone, that someone capable of doing it is called the Federal Reserve or simply the Central Bank. This naturally has a diluting effect on the shares outstanding evidenced by general inflation in prices. But this is separate from price movements caused by changes in supply and/or demand. The supply constriction put on fossil fuels by the elites using climate change to herd the ignorant and create popular support is going to cause as Obama put it prices to necessarily skyrocket. This is accepted as a good thing by his acolytes incapable of discerning the effects upon their own pocketbooks by the policies and nodding and banging their heads when told their misery is caused by evil capitalists who are actually good capitalists, while the actual evil capitalists and everyone is a capitalist many just refuse to accept it, are controlling them with fear. In this case, much of the tax is being collected by capitalists as prices of their resources necessarily skyrocket as supplies get shut down and the bills still must be paid to employees, creditors, and shareholders. The capitalists we elect to Congress work diligently to prevent their investments from being impacted by their illusions and scaremongering among the proles and most importantly keep the cash flowing into their campaign accounts. But what doth it profit a man to gain the whole world if he loses his soul? God is the quintessential capitalist. He coerces no one and simply offers the truth and the light and life eternal to all who will partake of it. One can buy of it or not freely in the market of ideas.
paragraphs
In the main, that is a calculation of opportunity cost. Reasonable.
It does come along with the usual economist’s ceteris paribus (e.g., wages aren’t rising in parallel – something Congress is quite skilled at for itself). It also assumes the displaced consumption (from disposable income) wasn’t frivolous.
Presumably, the hidden drop in goods and services eventually manifests as a drop in employment (in classical economics).
Deeper point taken: the feel good spirit of climate change energy policies driven by dubious physics has a real societal cost. This winter the cost calculation will become more difficult as real people perish. This inevitably motivates me to take names as this all unfolds.
Accountability.
Sadly I am waiting for the unemployment rate to increase dramatically.
I think stagflation is on the horizon as well, but who the heck knows. Everything has become a gambling casino divorced from reality.
Klaus now stating no one should be allowed to own private vehicles? Well, the silver lining is this is where the Hollywood garages stuffed with ICE autos will draw the line. Hard to impress riding the bus like the rest of the plebs.
If I had the wherewithal, I would run this post as a TV spot to vote R. In every market. I think most reasonable people know the energy issue is somewhere between “concerning” and outrageous. I’m the latter. But with considerable research, I have never read a better piece illustrating so succinctly the breadth of the financial devastation.
I read an article recently, and I think it was from the UK. It said that they are going to additionally increase the price of electricity because the drop in use of electricity will not be sustainable for the electricity company. How does this not cause the whole thing to spiral out of control. It’s insane. (Yes, I know destroying society is on purpose)
Meanwhile, this is the true winter of death that’s coming.
i found this to be interesting
https://www.bitchute.com/video/XSMXJtP1HIUF/
Add in the increase in gasoline and natural gas…….you have at minimum 7-10k overall price increase, plus you are getting dinged on groceries in the 20-30% range on average but some things are up over 50%.
Actually, it’s much worse. That additional $2,400 for the same amount of energy is after-tax (Federal, State, payroll) so the middle-class family had to earn about +$3,400 to pay the higher energy bill or an additional +3.4% from their gross to pay Biden’s eco nonsense!
True.
I think Sundance was trying to illustrate the impact to the larger community of losing the spendable dollars to the cost increase of existing fixed expenses.
That thousands, even millions or billions of dollars are removed from the economy – removed from all types of businesses whose products and services might have been purchased with that after-tax money before it was removed from everyones wallet by the inflated increase of basic, necessary energy.
And all the people who work for or own those businesses are the losers in this scenario. The loss of that $2,400 per year per household causes those businesses to lose income and thus have to cut staff or raise prices, something their market may not tolerate due to inelasticity.
This article is a remarkably simple but clear example that illustrates the destruction caused by the unnecessary increase in energy costs.
Much of this insanity goes back to the FACT that the enviro-Nazis gained control over the major “peer-review” periodicals and environmental publications decades ago. By blithely dismissing and rejecting well researched and solidly sourced submissions challenging “Global Warming, Climate Change” etc., these boards and review panels (totally controlled by the Climate Change mafia) were able to forge a “consensus” of climatic emergency and promote the alarmism that is driving public policy today.
My professional background is environmental studies–in fact, that was my graduate degree. Let me tell one and all, the climate change alarmist propaganda is a total charade–a hoax. It is as fake as the Russia-collusion hoax, but 1,000 times more dangerous to the inhabitants of this world.
The promoters and adherents of this fraud are misanthropic monsters–evil to their very core.
Idiot on parade
Speaking of gas cars and Virginia, Gov Youngkin of Virginia is addressing a problem introduced by his predecessor last year.
”In 2021, Governor Northam and the far-left controlled General Assembly signed a law that binds Virginia to California’s emission vehicle regulations, which, among other things, bans the sale of gas-powered cars in Virginia by 2035”.
Average household income is not $100,000 – it’s about $67,000.
Wow, I have not spent 0ver $300 for electricity in a month since 2012, my bill last month was $71.
Depends on the area that you live. Is it red or blue? How Ecco wacko are your utility regulators? Also, Nuclear, Hydro whatever your source.
I feel the economic unease every day and it’s only a beginning. I’m happy I’m on the way out but fear for my kids and grandkids. It will get very ugly.
Well that’s $2400 less for the woke corporations like Kroger, Walmart and Target plus $2400 less for cable TV, failing newspapers and Netflix.
F$ck these clowns.
They should have hired a real Electrical Engineer to do a feasibility study on the unreliable energy sources they are trying to force on us with their New Green Steal. The facts would tell you that it is a waste of money and will destroy our economy.
Real Science versus Political Science = facts versus bullshit.
I believe that is the plan. Transition to nothing and like it.
You won’t own a house, you won’t own a car, and the things you do own will be tightly controlled.
Of course, an economy controlled from the top will fail as it always does, but in the meantime a tremendous number of people will suffer from the interim effects of the rulers stupid decisions.
Now an the static increase in the price of food.
The average person in Sundance’s example has to earn $3200-$3500 to pay the extra $2400 in electricity.
FJB
There is quite a bit of irony in that over the last 15 years, most of us have had no choice but to cough up a lot more money than it is worth to purchase “an energy efficient appliance.” The older appliances lasted for decades. The new fangled ones die with 5 years. (Perhaps 7 or 8 years if you are lucky.)
But we were told that the upside in the equation is we would be helping to keep energy costs low.
Looks like the joke is once again on We The People.
Keep your old stuff going. Ignore the latest gadgets.
I use applianceblog.com. Describe your problem, give your appliance model number, and experienced retired technicians will tell you what is wrong and how to fix it yourself. They have discounts on factory authorized parts and videos to show you exactly how to do the work. I have a 25 year old Whirlpool fridge. I’ve replaced the ice maker, a circuit board, and a water filter receptacle. The last item cost me 70 bucks and a service call alone (no labor or parts) was 125 bucks. A couple of screws, two hoses, and 10 minuted later it was fixed. I save a ton of money and keep my old appliances running.
This is information is so clear that even the rinos and dems
might understand it
Not for ideologues, unfortunately.
Don’t worry your income is going to be replaced by UBI.
Or, the $1T Inflation Reduction Act spending bill is the cure all. No need to fear, Biden, Schumer and Manchin have got this covered.
This should be titled, “How Renewable Energy Will Shrink Our Lives Without Appearing to Constrict the Economy”. Or “How Renewable Energy Will Reduce Our Standard of Living”. Or “Let’s Play Hide-the-Recession”.
These sly and slimy monsters.
None of this cockamamie would exist if the American people weren’t so dumb and stupid.
Anybody with basic economic understanding,
knows this is the wrong way to go about things.
We DONT have to tighten belts.
We NEED to make policy driven decisions
that enable more efficient energy production
and delivery.
This energy shortage is entirely policy driven.
Its on purpose. You are supposed to suffer.
Every day I fear death just a little less than the day before. That could eventually be a big problem for some moron who expects me to be a good little subservient soy sipping pushover…
The US had the cheapest to produce natural gas in the world. Our natural gas costs were 10% of China’s which allowed us to easily compete with higher worker compensation while production costs were 1/2 or more of China’s even with their slave labor. US land and it’s natural resources are owned by the people. This Brandon regime is stealing economic opportunity and benefit from “the people” to enrich foreign entities with no skin in the game, while the politicians eat cake and ice cream.
This is the reality of the WEF NWO Globalist policies and election fraud that got us here.
Now go figure out the remedies and penalties.
Our natural gas is going to Europe by the millions of cubic meters because the price is so high that the US makes a huge profit on it. Of course, it means that now there is less for American consumers which will probably cause the price in the US to go up. Hopefully not as high as in Europe?
This greed new deal is why we need the government to pay for our student loans, babysitters, buy us electric powered vehicles, and teach us that we are all racists and misgendered.
I call it the Green Ordeal. Wind powered government.
Nice math for people not good at it. I use this reductive math:
100000 income
-30000 income tax
-30000 housing
– 5000 retirement savings
– 5000 auto transit ins
– 5000 gas, water, sewer, net
Means 25000 left for food, travel clothes, entertainment, stuff for house.
2400 increased energy is roughly a 10% reduction in consumables. This is leverage that policy makers are exploiting for malicious purposes. They know this math.
Folks see 2400 as a fraction of 100000, or 2.4%. Really it is a 10% reduction in accessible income. Now raise taxes a few points, and raise interest on your debt a few points. You can see they can turn a few screws to get impacts broadly.
They know all this. They are cruel. We are screwed.
Using my above math on sensitivity, you should see a 1% in taxes on 100000 income, but with 25000 available for consumption yields a 1/25 change—4% decline. Taxes, energy aren’t a burden on what you make, they are a burden on what you keep.
I did the math for 25% of your proposed income.
Yes, as to your last sentence.
The worst part isn’t that their energy policy is wrong, stupid and fuelled with malicious intent. The worst part is that it is being forced down everyone’s throat via a stolen election. No, worse than even that – that the people of the United States of America are accepting the results of an obviously rigged election.
Moved from NH to Florida in January to escape from Covaids hysteria. Our auto insurance policy on the two vehicles went from $472/6 months to $1604. Just got notice from Geico that by the end of September, our new 6 month policy now costs $2103. That’s with clean driving records. FML.
Thank God Mexico has common sense!! Fossil Fuels now and forever!!
Excellent primer, Sundance.
So depressing. If you were to multiply out inflation’s impact on all the “have to buy items” like groceries and gas, that small state is probably looking at 60 billion in money that can’t be spent at restaurants, bowling alleys, amusement parks, etc.
Yesterday I brought 3 men’s shirts, 3 pants, and a blazer to the dry cleaner. Total was an eye popping 31 dollars. Fortunately my husband can almost always wear golf shirts and a nice pair of jeans when he goes into the office because guess who’s going to be ironing and starching his shirts from now on? 😉
Just received the electric bill for July/August. $ 1200 pesos. Equals 30 USD per month . A 5 dollar per month increase. Viva 🇲🇽
Show off!
Governments operate on tax money. From what I read here, there will be a substantial drop in sales taxes at all levels of our governments. This will be fallout from massive stupidity by the governments.
Come on man ! 81 Million voted for this imbecile and his useless VP in the WH don’t try and diminish their attempt’s to save humanity, have a heart.
BINGO and beautifully said!
People are missing so many negatives that are intensifying right now. Even so-called economic “experts”. Just look around at the nonproductive B.S. Slowdowns due to so many causes, this energy issue chief among them.
But then there is the money pit / burning money via dei initiatives, increased car loan paymentss, slowdowns in real estate, jacked up real estate, jacked gas prices. Food costs.
Maybe a miracle will happen.
I realize this was just an example of the scale of the increase, but geeze anyone paying $300/mo on average for electricity needs to move or upgrade their systems or take their parka off and set the temp around 75 instead of 45. Or maybe downsize the house a bit?
I believe some isolated places in the country could have $300/mo electric bills. But, really, is that typical? I have 1250 s.f. and paid $175 peak so far, and it’s dropped back to $155-ish. Before the inflation, it was half that, so yeah it sucks. But for a $300 bill before that, which equates to about $95 for my house… that’s a 3X cost increase over my house. Why?
Is that from huge houses? A/C running with windows open? Gouging prices outside TX? I dunno, but that also seems like an important place to look besides the inflation.
The elections over the next 2-4 years will tell us if there is any freedom left in the world. Even people in Europe and East Asia can’t accept this.