The U.S. economy has
a great opportunity
for a manufacturing renaissance. Let’s hope that Democrats and green zealots don’t kill it by regulating and taxing manufacturing out of existence.
The threat is real. Just look at Western Europe, which reenacted the tale of the Pied Piper by embracing climate change with far too little sense. Put simply, Western Europe went way too green way too fast. Green policies are putting Western Europe’s heavy industries out of business. In Western Europe, steel plants, fertilizer companies, concrete businesses, chemical giants, glass fabricators, and metals operations are
their operations in the face of soaring energy prices.
This affects the people, as well as corporations and the broader economy. In Europe, natural gas costs 10 times more than in the United States. In Britain, households are
an 80% increase in home heating bills. For Britons, the great green revolution is turning out to be a harsh hollow promise. Successive British governments decided to try and rely upon wind power. In so doing, the country turned away from its vast reserves of natural gas. Today, wind power supplies just 3% of the UK’s energy needs.
At least for the moment, the U.S. is a low-cost producer of oil and gas. Oil and natural gas exports are soaring. Energy is a significant input cost (20-40% of total costs) for heavy industries such as steel, fertilizer producers, aluminum manufacturing, chemicals operations, glass fabrication, and concrete manufacturing. Again, this matters. In 2021, the industrial sector
35% of total U.S. end-use energy consumption and 33% o …