Democrats’ Climate Agenda Threatens US Auto Industry, Entire Economy
Amid surging gas prices that have Americans again wincing at the pump, the Biden administration and Democratic lawmakers are taking steps that could drive up costs even more while jeopardizing American jobs.
A group of leftist Democrat lawmakers, including Sens. Ed Markey (D-MA) and Elizabeth Warren (D-MA) and Rep. Alexandria Ocasio-Cortez (D-NY), have urged the Federal Reserve to require financial institutions to stop fossil fuel financing.
On Monday, the group wrote to Jerome Powell, Chair of the Federal Reserve, stating: “The Federal Reserve must take the necessary steps to protect the stability of the financial system by fully understanding climate risks and requiring financial institutions to stop fossil fuel financing.”
Meanwhile, AAA reported that the U.S. average price for a gallon of regular gas stood at $3.88 as of September 19.
In addition, the United Auto Workers (UAW) union is in the middle of a strike against Ford, General Motors and Stellantis.
Former Vice President Mike Pence commended the UAW for “pushing back rightly,” citing the Biden administration’s green agenda for sparking anxiety among union members. Pence noted, “These guys are seeing the Green New Deal that was passed under the guise of the Inflation Reduction Act, they’re seeing it drive their industry into EVs, benefiting China that makes most of our batteries.”
Here’s the reality: these policies are more than just talking points for a climate-friendly agenda. They’re a double whammy on domestic industrial production and ordinary Americans struggling to make ends meet.
Firstly, pushing banks to cut fossil fuel financing will inevitably lead to higher energy costs, including for gasoline. This occurs when families are struggling mightily with inflation and high gas prices, which will only worsen if these plans take root. Strangling the lifeblood of America’s energy needs to satisfy an ideological agenda doesn’t seem like a win for the U.S. financial system or the American people.
Secondly, Biden’s encouragement of electric vehicles may seem progressive, but it carries a heavy price. The auto industry is a cornerstone of American manufacturing. The UAW’s reluctance toward Biden’s green transition is grounded in real concerns — EV production facilities are largely being built in regions where union influence is weak, threatening the livelihood of many American workers.
The UAW knows the EV shift will require 40% less labor, thereby shrinking the union and affecting American workers’ ability to make a decent living. Pence accurately encapsulated the issue when he said, “We’re all living in the failed reality of Bidenomics.”
China also looms large in this scenario. The Asian giant dominates the global EV market, accounting for 60% of worldwide sales. The rapid growth of China’s electric vehicle industry, helped by governmental subsidies, starkly contrasts the sluggish demand for EVs in America.
Let’s not forget that most of the batteries that will be used in American EVs will likely be manufactured in China. By pushing so aggressively for electric vehicles, the U.S. is inadvertently bolstering Chinese industry while leaving American workers and companies to pick up the pieces.
It’s time for a reality check. While the Biden administration and Democratic lawmakers may feel a sense of accomplishment in pushing for a “greener” future, the immediate and looming financial and human costs cannot be ignored. Instead of forging a practical path that balances environmental concerns with economic realities, we are veering off into risky territory, endangering American jobs and energy security.
