Economic Outlook Take Another Look Essay

Increases in manufacturing reveal benefits early, one can track the benefit at all stages and report the benefits to the public quickly. According to a statement released by the Center for American Progress, "solar panels don't install themselves. Wind turbines don't manufacture themselves. Homes and buildings don't retrofit or weatherize themselves. In our industrial society, trees don't even PLANT themselves, anymore. Real people must do all of that work." The public wants a quick fix, they want to start hearing that the economy is doing better and a focus on manufacturing will accomplish this. Additionally, there has been increasing pressure on the White House to focuses on alternative energy sources. Such a policy would gain favor with democratic and liberal environmentalists.

4. Do you consider your views to be more aligned with a classical or Keynesian approach to economic thinking? Explain. (There is no right or wrong answer). See module 1 for resources if needed.

My views on alternative energy and climate economics is closely tied to monetarist ways of thinking about economics. Monetarism is mostly associated with Milton Friedman who worked within the Keynesian framework of economics. According to Michael Hoexeter's article on climate policy, the economics of climate change focus on setting a price for carbon. Keynesian economics advocates active policy responses by the public sector and enables economists to appreciate the vital role of government investment and leadership in the area of climate change. The alternative energy policy mentioned in number 3., above focuses on governmental policy designed to enact climate change. Further, in the are of climate change, government policy that focuses on setting the price for carbon, carbon taxation and fees can encourage the public sector's involvement in alternative energy as a method of avoiding fees and saving money

REFERENCE LIST

Chea S., (2010). "Manufacturers' Orders as an Economic Indicator." Associated Content February, 2010. Retrieved from http://www.associatedcontent.com/article/2685879/manufacturers_orders_as_an_economic_pg2.html?cat=3.

Federal Reserve bank of New York. Durable Goods. Retrieved from http://www.newyorkfed.org/education/bythe.html#durgoods.

Hoexter, M., (2009). "Cap and Trade: An Unserious Policy Framework.. Towards a Serious Climate Policy -- Part 2."Climate Policy, Energy Policy, Sustainable Thinking, December 2009.

Podesta, J., Stern T., (2007). "Capturing the Energy Opportunity: Creating a Low-Carbon Economy." The Center for American Progress, Nov. 2007. Retrieved http://www.americanprogress.org.

Weisul, K. (2010) . "Economic indicators: Hot or not?." CNN, June 2010. Retrieved from:http://money.cnn.com/2010/06/01/news/economy/economic_indicator.fortune/index.htm