Energy & Entrepreneurs

Energy States and Job Creation

by Raymond J. Keating

Many of our elected officials are openly hostile to the energy-producing sector of our economy - in particular, to carbon-based energy production. That's troubling, of course, given that all of our economy benefits from affordable, reliable energy. It's certainly critical for small businesses.

But there's even more.

In late July, Gallup reported the following: "More than half of the 10 best job markets in 2010 are energy- and commodity-producing states, indicating how valuable these natural resource-based industries are to the U.S. economy at this time."

Specifically: "Gallup's Job Creation Index shows that the energy-producing states of North Dakota, Louisiana, West Virginia, Oklahoma, and Texas are in the top 10 state job markets for the first half of 2010, as they were in 2008 and 2009."

So, energy-producing states have held up relatively well in terms of overall employment.

This, of course, makes the direction on federal energy policy even more perplexing. Why are leaders in Congress and the President so intent on pushing energy policies - such as cap-and-trade regulation, and offshore drilling moratoriums - that will drive down domestic energy production, drive up energy costs, and hurt job creation?

Only two answers are possible, and neither generates confidence. Either our leaders do not understand basic economics, or they do not care.

_______

Raymond J. Keating is chief economist for the Small Business & Entrepreneurship Council.