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Crying Wolf Again: Big Business Gearing Up for a Fight Against Obama's Environmental Program
In its first 100 days, the Obama administration did more to address global warming and the environmental crisis than the Bush administration did in eight years.
The new president is moving on many fronts. So far, Obama directed the Environmental Protection Agency to reconsider California's request to regulate pollution from auto emissions. He directed the Department of Transportation to finalize new fuel-efficiency standards. He made environmental progress a key feature of his first proposed federal budget by including tax breaks for clean energy research and eliminating a host of oil and gas industry tax breaks. The savings, along with revenues from Obama's proposed cap and trade policy, will generate billions for renewable energy projects. And, he restored science to its rightful place in the formulation of environmental policy.
Obama knows, though, that the big environmental battles are still to come. In a interview last month, Lisa Jackson, Obama's EPA administrator, anticipated how opponents would attack the president's environmental reforms. "If you look at the history of environmental laws in this country, " she explained, "every time ... the lobbyists say, 'Oh, this will shut down the American economy. Every last one of you will lose jobs.' It's always these overblown, doomsday scenarios that overlook ... the fact that you can indeed build an economy towards green energy."
Two years ago, the U.S. Supreme Court ruled that the Bush EPA violated the Clean Air Act by refusing to regulate greenhouse gases. Until he left office, Bush stonewalled, failing to take action. But in April, Obama's EPA reversed course. It declared carbon dioxide and other heat-trapping gases to be pollutants that endanger public health and welfare. This was the needed step to allow the EPA to develop regulations to address some of the most significant causes of global warming, such as auto emissions or power plants.
As Jackson predicted, the fear mongers and doomsayers are crying wolf once again. Corporate polluters, their political allies, and their policy apologists argue that government action to prevent potentially devastating impacts of global warming will wreak economic havoc. Sen. Christopher Bond, a Missouri Republican, charged that the EPA declaration on greenhouse gases "will do more to endanger families, farmers and workers with new energy taxes and lost jobs than it does to protect the environment."
The toxic business lobby is gearing up for a major political battle. The 50 largest electric utility companies spent a total of $51 million in the last six months of 2008 on lobbying expenditures -- $12 million more than the same period in 2007. This is just a downpayment on their political warchest to stop real environmental progress.
The sky-is-falling coalition is already using the same rhetoric it has used for every effort to address air pollution and global warming.
Crying Wolf about fuel standards
For decades, the auto industry fought every effort to increase fuel standards and reduce emissions. The car companies and their political flunkies claimed that the industry would face ruin, that consumers would lose choices, and that autos would become unsafe for drivers and passengers.
Scientists have long understood the connection between auto pollution and public health problems. Auto emissions have been linked to increased risk of asthma, lung cancer, leukemia and other ailments. According to the American Lung Association, air pollution from motor vehicles is responsible for from $40 billion to $50 billion in annual health care costs and as many as 120,000 unnecessary or premature deaths each year.
In the early 1970s, when the EPA was considering whether to require the installation of catalytic converters, Ernest Starkman, a General Motors VP, charged that "[I]f GM is forced to introduce catalytic converter systems across the board on 1975 models...[i]t is conceivable that complete stoppage of the entire production (system) could occur, with the obvious tremendous loss to the company, shareholders, employees, suppliers and communities."
In 1975, Congress -- reacting to the shock of the 1973 oil crisis, long lines at gas station pumps, and nascent environmental consciousness -- passed the Energy Policy Conservation Act. For the first time, the federal government established CAFE (mileage) standards for passenger cars and light trucks and called for doubling passenger vehicle fuel efficiency - to 27.5 miles per gallon - by 1985. Industry execs repeated the same Crying Wolf arguments that they'd used before. For example:
* General Motors President E.M. Estes argued in 1975 that CAFE standards would bring about a world in which "...absent a significant technological breakthrough...the largest car the industry will be selling in any volume at all will probably be smaller, lighter and less powerful than today's compact Chevy Nova."
* A Ford executive claimed that the law would "...result in a Ford product line consisting either of all sub-Pinto-sized vehicles or some mix of vehicles ranging from sub-sub-compact to perhaps a Maverick."
* Alan Loofburrow, Chrysler Vice President of Engineering, warned in his testimony before Congress that the new law would "...outlaw a number of engine lines and car models including most full-size sedans and station wagons. It would restrict the industry to producing subcompact size cars-or even smaller ones-within five years."
Even before the auto companies began producing mega-cars like the Hummer, industry execs argued that Americans wanted them to produce gas guzzling SUVs, while the rest of the world was predicting and adapting to the obvious need for a more environmentally-friendly fleet of cars.
Chrysler met Congress's CAFÉ fuel efficiency goals within a decade, but Ford and GM had still not reached the required mandate. Rather than work harder to comply, they poured their resources into pressuring Congress to roll back the standards. In what has become a Cry Wolf mantra, the auto giants threatened the Reagan administration that if they didn't get relief from the mileage standards, they'd move more jobs overseas.
* GM Chairman Roger Smith warned: "...[W]ith the CAFE running on up, we could close some plants. There's no question about it."
* "Ford Vice President Helen O. Petrauskas, testifying before a Senate subcommittee, claimed: "...[H]igher CAFE standards will divert industry resources from work on other national goals."
After GM and Ford threatened to export jobs, Congress blinked, granting the two automakers rollbacks for the next several years.
In 1990, Senators Richard Bryan (D-NV) and Slade Gorton (R-WA) sponsored a bill that aimed to lift fuel economy standards for cars and light trucks by 40% over the next decade. The auto industry along with industry funded think tanks, geared up again:
* Ford Chairman Harold Poling predicted in 1991 that a boost in CAFE standards would mean that "You would see large cars pretty much go away. You might see a few Taurus and Sable sizes, but not many."
* Sam Kazman of the Competitive Enterprise Institute on CNN's Crossfire: "CAFE is the real blood-for-oil policy-it will spill blood on the highways of this country."
* The industry lobby used its campaign warchest to pay for TV ads in key Congressional districts, seeking to frighten voters into equating stronger environmental standards with lays offs and a lower standard of living. According to the Washington Post, "The television advertisement shows a huge car smashing a tiny one to smithereens. After the collision, the voice-over says: 'While smaller cars can save gas, they could cost you something far more precious.'"
The industry's propaganda and lobby effort paid off. Although the bill passed 14-4 in the Commerce Committee, industry-friendly Senators filibustered on the Senate floor, killing the legislation. Had the bill passed, CAFE standards would have reached 40 miles per gallon for cars and 29 miles per gallon for light trucks by 2001.
Crying Wolf about global warming
The auto industry's fanatic fear-mongering has been a consistent part of the public debate over the environment and public. The car companies fight efforts to acknowledge the reality of global warming and then battle to kill legislaiton to reduce it. In 1997 when other nations began embracing the Kyoto Protocol, pledging to reduce their pollution to below 1990 levels over the next 10 to 15 years, the U.S. auto industry lobbied American elected officials to keep our signature off the document, warning that doing so would bring economic devastation:
* Parroting the industry line, Sen. Chuck Hagel, (R-Nebraska) said "The economic impact would be devastating for the United States. We would see the loss of millions of jobs, entire industries would flee to other countries, our people would face higher fuel costs, higher taxes, leading to lower productivity and a lower standard of living."
* Similarly, in 1999, Michigan Republican Rep. Knollenberg charged at a Republican-controlled congressional hearing of the subcommittee on National Economic Growth, Natural Resources and Regulatory Affairs entitled "Kyoto Protocol: Is that Clinton Gore-Administration selling out Americans?", that the treaty would "cause energy prices to soar and the standard of living in our country to plummet." He said it would result in the elimination of over 2.4 million American jobs by the year 2010.
* In 1997, Andrew Card, the former chief of staff for President George W. Bush who was then president of the American Association of Automobile Manufacturers, said that the Clinton administration's proposal for the Kyoto conference would cause "soaring production costs and significantly higher driving costs -- the rationing schemes, energy taxes or other mechanisms with comparable effect."
* Sen. James Inhofe, the Oklahoma Republican, testified in 2003 that "Kyoto is an economic weapon designed to undermine the global competitiveness and economic superiority of the United States."
By now we know that these claims, repeated over and over again in these and many other legislative battles, we're just plain wrong. In 1973, just two months after successfully getting the EPA to delay the requirement for catalytic converters, the automakers announced that they would install them anyway in every car. And they acknowledged that converters would generate fuel economy gains of up to 20%.
Contradicting predictions of massive job loss, a study released last October by David Roland-Holst, a University of California at Berkeley economist, found that California's energy efficiency policies actually created nearly 1.5 million jobs. The study found that consumers were able to reduce their energy spending and divert those savings to other parts of the economy, creating demand for addtional jobs in the grocery and consumer goods sectors.
If fact, had the auto industry not been so short-sighted, and embraced earlier calls to make more environmentally-friendly vehicles, they wouldn't be in the mess they're in now. Tough fuel and safety standards would have helped the industry strengthen its global competitiveness, as gas prices increased and consumers fled from gas guzzling SUVs and pickups in the last two years.
The auto industry's resistance and fear mongering has helped bring us far too close to an environmental precipice. Had the U.S. stepped up and become a leader in the global challenge, our cars would be more fuel efficient, we would be more energy independent, our skies would be cleaner, our public would be healthier, and our economy would be stronger.
But the political clout of big business, including the auto industry, backed up by industry-funded think tanks and front groups that deny the reality of global warming, has harmed the economy and threatened our planet.
The auto industry and its allies have been consistently wrong whenever they've warned that tougher standards will destroy car company's profits and kill jobs. Yet they continue to roll out the same misleading arguments to undermine Congressional support for up-to-date regulations. Why should anyone believe them now?
President Obama needs to and will go much further to reduce America's carbon footprint and aggressively retool and regulate where necessary to meet the challenge of global warming. Industry resisters will likely continue to Cry Wolf as they have in the past at each and every step. When they do, we should just use Ronald Reagan's famous and dismissive phrase "there they go again" and then do the right thing.





19 Comments so far
Show All"President Obama needs to and will go much further to reduce America's carbon footprint"
Please remove your mouth from Obama's junk.
--
Eric Patton
Cincinnati, OH
ebpatton@yahoo.com
thanks. that adds much.
Ernest Starkman, a General Motors VP, charged that "[I]f GM is forced to introduce catalytic converter systems across the board on 1975 models...[i]t is conceivable that complete stoppage of the entire production (system) could occur, with the obvious tremendous loss to the company, shareholders, employees, suppliers and communities." [Note the prioritized order]
After GM and Ford threatened to export jobs, Congress blinked, granting the two automakers rollbacks for the next several years. [And so where are jobs today?]
The industry lobby used its campaign warchest to pay for TV ads in key Congressional districts, seeking to frighten voters into equating stronger environmental standards with lays offs and a lower standard of living. According to the Washington Post, "The television advertisement shows a huge car smashing a tiny one to smithereens. After the collision, the voice-over says: 'While smaller cars can save gas, they could cost you something far more precious.'" [Ah yes, the fear tactic. What will I lose? What’s in it for ME? And today? Layoffs? Lower standards of living? The environment?]
Sen. Chuck Hagel, (R-Nebraska) said "The economic impact would be devastating for the United States. We would see the loss of millions of jobs, entire industries would flee to other countries, our people would face higher fuel costs, higher taxes, leading to lower productivity and a lower standard of living." [And what are we seeing now?]
Sen. James Inhofe, the Oklahoma Republican, testified in 2003 that "Kyoto is an economic weapon designed to undermine the global competitiveness and economic superiority of the United States."[Having rejected the Kyoto protocol, just how superior are we today?]
In 1997, Andrew Card, the former chief of staff for President George W. Bush who was then president of the American Association of Automobile Manufacturers, said that the Clinton administration's proposal for the Kyoto conference would cause "soaring production costs and significantly higher driving costs -- the rationing schemes, energy taxes or other mechanisms with comparable effect."
Andrew Card, president of the AAAM, and then Chief of Staff. Hmmm. Cheney, Haliburton CEO, then VP. Congress men and women getting kickbacks from special interest groups. And now, Paulson, Geithner Goldman Sachs now Obama's team.
Nice article, but nothing has changed and nothing will as long as the government is a government of the rich, by the rich and for the rich. And this will not change. It is ironic that the theme of this article is 'crying wolf'. The predictions were amazingly accurate; albeit the premises for them were not.
The auto manufacturers in this country are finally reaping their karma. Unfortunately, the politicians are not. Like the sycophants that they are, they simply move on to inhabit other hosts; currently the financial industry.
I got 30 mpg with my 1970 Saab driving at 55 mph. Currently, I get as high as 45 mpg driving at 65 mph with my 1991 Honda. Yet the auto industry continues to try to instill fear in the hearts of consumers. Too late guys! Fear what? The house has already been torched. And then you want the family to fear that it might be damaged by an act of Congress??? The CEOs have their billions, Congress and the Executive Branch are their concubines, and the rest of us can get f^&k%d! We don't count. GET IT???? We don't matter. We are simply collateral damage; a price that must be paid- that so many around the world have already and are STILL paying- for a better world [but only for those for whom God made this world- not for peons.]
Nice post, but this..."Sen. James Inhofe, the Oklahoma Republican, testified in 2003 that "Kyoto is an economic weapon designed to undermine the global competitiveness and economic superiority of the United States."[Having rejected the Kyoto protocol, just how superior are we today?]"
The Kyoto protocol without India and China was an exercise in futility. Just as Cap and Trade would be today without them.
"The Kyoto protocol without India and China was an exercise in futility"
No, the Kyoto protocol was a wakeup call, not a final solution.
It put Europe and Japan on notice that eventually CO2 would have to be dealt with, and many countries did the groundwork for better wind turbines, better solar panels, better electric grids for moving around intermittent, renewable power. Denmark is now a global leader in windpower, for instance. Japan and Germany are global leaders in solar power.
It was not 'futile' - it got the ball rolling. Wind power is now growing exponentially around the planet, at something like 30% per year. Solar is growing similarly, albeit from a smaller base. India and China did not want to be punished for 'the West's' centuries of CO2 release, starting with the industrial revolution in England in the 18th Century. They are very aware that their people emit something like 1/4 or 1/8 (China, India) of the CO2, per capita, of the Industrialized world. They don't want to be 'frozen' in a primitive state; they want the whole world to develop low-carbon or carbon-free power sources that they can use, along with everyone else, to have a decent life. They will NOT be persuaded to 'stay on the farm', remaining primitive. They are willing to deal about *how* they develop, and India and China are quite willing to install windpower, for example. China is already installing huge projects, and has plans for many more.
'Per capita emissions' is very much on the minds of India and China, plus the fact that they have been industrialized much LESS time than other countries. The upcoming Copenhagen Protocol (the successor to Kyoto) later this year, has to take into consideration the different histories and culpability of different countries.
If the planet gets serious about transitioning it's Energy System, it can do it. The current R&D and project costs are small change compared to Oil and Natural Gas and Coal, so far. Besides wind and solar and tidal, fusion power has been starved of funds since WWII; I think the Oil companies were stringing it along (through their control of Western Governments) until the oil runs out... That can be changed, now. The electric grids can be improved to allow more distributed, renewable energy. Vehicle fleets can be made much more electric in the coming decades (e.g. Chevy Volt out next year; lithium-ion batteries are hitting their automotive stride next year). Copenhagen Protocol is definitely doable- it's just a question of Winners and Losers, and the Losers will be trying to scuttle the whole deal.
Sioux Rose
DJPROF: Right-on about the industry reaping its karma! Generally, it's more cost-effective to do the right/moral thing (preferably an approach that respects nature and honors sound ecological practices) from the outset.
Yes - I hear that Obama is willing to finally reach across the aisle and help progressives.
I'll believe it when I see it.
most people don't believe what they see. they stick with their preconceptions.
Considering the past behavior of corporate polluters, is it any surprise they will fight tooth and nail to avoid being untethered from the golden teat while they dirty up the planet for future generations? It is well past time to bring these criminals in three piece suits to heel and do what is necessary to ensure future life on this precious Earth. If that means these douche bags have to find gainful employment elsewhere, so be it!
These douche bags are criminals, and should be employed at hard labor in a prison camp. Better yet, hang em.
To Tom More... the "India and China" dodge is nonsense. Both countries have far lower per capita emissions than does the USA. It would be nice if everyone were in agreement, but, under real world circumstances, it's an academic point. Also, they've been emitting gases for a far shorter time than has the US.
I as sunme you are joking. China adds coa l fired energy to equal all ours each year. No dodge at all, thats the truth.
Simply I'd say that doing it by ourselves would have very little effect if any.
The effect it would have of course is more of our jobs lost to those countries that don't join in.
Per Capita emmissions is a bit useless when they have a billion+ people to our 300 million+.
Per capita emissions are all that matter. Countries are arbitrary divisions. Otherwise we could simply cut our country in two and pollute a lot more! A cherry-picked factoid,"China adds coal fired energy equal to all [of] ours each year", incidentally, highly dubious (have a citation?), doesn't refute the contention that, over all, they produce less CO2 per person (large, poor rural population, stricter MPG standards) than we do and have been responsible, due to recent industrialization, for far less accumulated greenhouse gases. Thus "doing it ourselves" is nonsense as our per capita carbon footprint is the world's highest. As far as "lost jobs", that's NAFTA and GATT. Green energy has been demonstrated to create jobs. The China/India dodge is just a "False Noise" talking point.
"If you look at the history of environmental laws in this country, " she explained, "every time ... the lobbyists say, 'Oh, this will shut down the American economy. "
President Obama:
Ban lobbyists. Ban all campaign "contributions". Institute publicly financed elections. The public is behind this. If you can't do it, put the issue up for a binding referendum.
Referenda ...
From another thread - http://ni4d.us/ could be a step in the right direction
Yes, thank you. Senator Gravel has the best solution in my opinion.
I don't see Big Business really crying about anything. I'm sorry but they love "Cap-and-trade" because they know that they'll win while we taxpayers will lose even more. If you really want to see Big Business scream, try fighting for national policies that override HOA restrictions on solar panels and wind turbines. Better yet, watch Big Business scream like hell when policies geared towards legalizing hemp and paving the way for better sources of biofuel such as hemp and algae which will turn turn out to be BIOCRUDE and give us truly green sources of energy come up in Congress. Just ask Ron Paul and Dennis Kucinich who support these honorable efforts. Or if we can't do hemp or algae, how about getting government to divert some of the corn subsidies to switch grass? You'll see more screaming from Big Business there. And yes, I'm well aware of fuel efficiency and conservation but that's another story.
"The 50 largest electric utility companies spent a total of $51 million in the last six months of 2008 on lobbying expenditures -- $12 million more than the same period in 2007. This is just a downpayment on their political warchest to stop real environmental progress."
If over the last 30 years the sh!t-head CEOs of these companies had put that money into cleaning up the environment instead of hiring lobbyists to write legislation to stop it, we wouldn't be in the environmental crisis situtation we're in at the moment. The same could be said for the CEOs of banks and the financial crisis we are in today.
When will the parasites in Congress wake up? Hopefully before they destroy our and their grandchildren's futures!
Obama comes out front emphatically saying _________, (everything we want to hear.)
One week later when the policy changing headlines have dropped off the front page, administration minions are clarifying what his remarks to find Obama was actually maintaining the status quo with a few nips and tucks.
That is all, and that is all we're gonna get on his environmental policy.
Picking that shit kicking asshole Salazar for Interior Sec and Monsanto Vilsak for Ag Sec sent chills down my spine. Those two signaled where the environment is going, into the crapper.
Salazar is already living up to my expectations. For starters, he's a male version of Sarah Palin with his war on wildlife. Right now, he's on board with Bush for slaughtering baby buffalo, shooting down wolves, rounding up horses for shipment to slaughterhouses in Mexico, and refusing to protect the polar bear.
How about those "clean" coal ads featuring Obama? Have you eva'?
I'm stupified. A polluting industry is using the POTUS as their shill.
This has to be a first. More blatant abuse of environmental protections by
special interests.
Expect more of the same.