Peacock Panache

Policy For Dummies: Trump’s Handout To Coal Executives

Policy For Dummies: Trump's Handout To Coal Executives

Permit me to channel–okay, parody– Elizabeth Barrett Browning.

How do I ridicule thee? Let me count the ways.
I sneer to the depth and breadth and height
My soul can reach…

President Trump–in his obsessive effort to eradicate anything and everything that his predecessor did (he was black, you know)– has reversed Obama’s moratorium on new leases for coal mining on federal lands.

Although that moratorium was good for the environment, the impetus for it was actually financial. As Think Progress has reported,

Taxpayers are estimated to be losing $1 billion a year in revenues because coal companies are not paying royalties on the actual market price of coal extracted from federal lands. Royalty payments are split between the federal government and the state where the coal is mined, and coal lease sales in the in the past decade garnered close to $1 per ton in bids.

This is above and beyond the so-called “royalties loophole,” which allows coal companies to sell publicly owned coal to subsidiaries at artificially low prices. An Obama-era rule had closed that loophole, but the Trump administration has already stayed the legally binding rule, and has initiated court proceedings to throw it out entirely. Under the loophole, taxpayers lose millions of dollars annually.

So–let’s just “count the ways” that this latest impulsive eruption was both stupid and venal.

As noted, it will cost taxpayers. And it will cost us without doing anything at all for coal miners.

Even if new leasing goes forward, critics say Trump’s order to lift the moratorium will do more for coal industry executives than it will for coal communities. Coal jobs have been in decline for decades — and not just because coal production is falling. Automation and new mining processes have diminished the number of jobs per ton of coal.

“This order won’t bring the coal industry back, but it will ensure coal companies rip off American taxpayers for years to come,” said Jesse Prentice-Dunn, advocacy director for the Center for Western Priorities.

Trump has already loosened regulations that prohibited coal companies from polluting the nation’s drinking water, alarming public health officials, among others. But his love affair with coal also ignores market economics. Between coal companies’ massive amount of reserves (over 20 years worth) and the rapidly declining use of coal, the market has sent a strong signal about coal’s future.

Receiving such signals–or, let’s face it, comprehending reality–isn’t Trump’s strong suit.

Reporting on the move, Reuters made similar observations.

Since 2012, coal production has plunged more than 25 percent to the lowest levels since 1978 due to falling prices. The industry has been hit with massive layoffs and bankruptcies.

Even if the rollback of the moratorium helped coal miners– an outcome analysts uniformly dispute–the number of Americans employed as coal miners is far fewer than Trump evidently believes. According to the Washington Post, more people work at Arby’s than in coal mines.

Experts in the industry have already pointed out, repeatedly, that the coal jobs are extremely unlikely to come back. The plight of the coal industry is more a function of changing energy markets and increased demand for natural gas than anything else.

Another largely overlooked point about coal jobs is that there just aren’t that many of them relative to other industries. There are various estimates of coal-sector employment, but according to the Census Bureau’s County Business Patterns program, which allows for detailed comparisons with many other industries, the coal industry employed 76,572 people in 2014, the latest year for which data is available.

That number includes not just miners but also office workers, sales staff and all of the other individuals who work at coal-mining companies.

Although 76,000 might seem like a large number, consider that similar numbers of people are employed by, say, the bowling (69,088) and skiing (75,036) industries. Other dwindling industries, such as travel agencies (99,888 people), employ considerably more. Used-car dealerships provide 138,000 jobs. Theme parks provide nearly 144,000. Carwash employment tops 150,000.

Maybe we can get Trump to turn his attention to carwashes. Used-car dealerships would be a natural fit…

Or maybe he can enlist a new ghostwriter and publish another book; it could be titled The Art of the Very Bad Deal or Policy for Dummies.

[Originally published at SheilaKennedy.net on August 11, 2017]

Sheila Kennedy is a former high school English teacher, former lawyer, former Republican, former Executive Director of Indiana’s ACLU, former columnist for the Indianapolis Star, and former young person. She is currently an (increasingly cranky) old person, a Professor of Law and Public Policy at Indiana University Purdue University in Indianapolis, and Director of IUPUI’s Center for Civic Literacy. She writes for the Indianapolis Business Journal, PA Times, and the Indiana Word, and blogs at www.sheilakennedy.net. For those who are interested in more detail, links to an abbreviated CV and academic publications can be found on her blog, along with links to her books..

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