recession… good?

Over the last few weeks, there has been report after report on how the recession is going to be bad for the “green” movement. Slate magazine begs to disagree.

The Green House: The recession is the best thing that could have happened to Barack Obama.

The feeling amongst many is that Obama believes that the “green” movement and setting the economy back on track go hand in hand. By tackling things like the infrastructure and energy, there is a double benefit of saving money due to efficiency, while also creating “green jobs” and getting people employed, again.

Newly Nobel-ed economist Paul Krugman has taken the lead in arguing that “the usual rules of economic policy no longer apply.” Normally, if you wanted to retrofit a building or weatherize a home, you’d have to get the money from somewhere. The usual way is to increase revenues or reduce spending. No longer. With the economy in freefall and interest rates as low as they can go, the only hope for recovery is to spend—and to err on the side of spending too much.

The best part: Even though we have to borrow money, eventually the government can pay itself back by printing more. Yes, that would devalue the currency and therefore would not be, to use a technical economic term, free. But the way Dean Baker of the Center for Economic and Policy Research sees it, we have to spend the money now, anyway, to stimulate the economy: “It’s like what Keynes said: Even if we pay people to dig holes and fill them up again, it’s still good.” And if we’re going to spend, we might as well spend on something that’s going to save us—both economically and environmentally—in the long term.

The argument against all of this… spending more and deflating the value of the dollar may lead the way to the Amero and there is always the backlash of a growing economy hurting the green movement.

You can read the article from Slate Magazine, HERE