Manufacturing packs an outsize punch in the economy, so much so, that only though it only accounts for 12% of total GDP, it still contributed half of all GDP growth earlier this year. (SOURCE: Kiplinger Letter)
In the last two years, the EPA has passed four new rules (Cross-State Air Pollution Rule, Coal Combustion Residuals, Cooling Water Intake Structures, and Utility MACT Rule) that will severely impact the American economy. How? See the following:
- $127 billion cost of compliance and $52 billion higher energy costs
- The costs for compliance are immense. The Utility MACT Rule alone comes with a cost of $11.4 billion in 2015, making it the most expensive regulation the EPA has written for coal-fueled power plants. Add in the replacement of lost capacity due to the premature retirement of certain plants, the energy sector will pay $127 billion from 2012-2020.
- Electricity prices will increase anywhere from 10% to 19%
- Higher compliance costs inevitably mean higher rates. Regions covering all or part of 30 states plus the District of Columbia will experience peak-year increases that will exceed 10 percent, with some as high as 19%.
- 1.65 million job losses by 2020
The progression is clear. Higher costs lead to higher rates, which lead to fewer jobs. Nationwide net loss is projected to be 1.65 million jobs between 2012 and 2020. And those numbers account for jobs created in some sectors by new regulations.