White House Jobs Numbers an Economic Modeling Blunder

Posted by on Sep 21, 2010 in Blog, Home, Resources | 0 comments

White House report from early September on the economic impacts of the offshore drilling moratorium at first glance appears to confirm job loss predictions made by LSU Professor, Dr. Joseph Mason earlier this year.  However, a closer examination reveals that the White House report strays from the government’s own best practices set by the Bureau of Economic Analysis, significantly underestimating the total economic impact of the moratorium.

Using the figures from a report, Dr. Mason re-ran his analysis using the government’s own economic modeling and reveals the White House underestimated total jobs loss by 7,500 to 11,500 jobs in the Gulf states. In fact, based on the administration’s data, Mason finds that that the region stands to lose:

·         19,536 jobs;

·         $5 billion in economic output;

·         $1.1 billion in earnings; and

·         $239 million in state and local tax revenues during the 6-month moratorium.

Clearly, the administration’s study represents another failed attempt to justify new anti-energy policies that will threaten the health of the U.S. economy and could undermine our economic recovery.  View Dr. Mason’s full analysis here.

It’s important to remember that this job-killing moratorium is not the only anti-energy policy currently threatening our energy security.  New energy taxes being pushed by the President and his allies in Congress threaten to eliminate over 154,000 jobs immediately, as well as some $341 billion in lost in economic activity through 2020. And these would by no means be limited to the oil and gas sector.

One individual that would testify to this fact is Thomas Clements, owner of Oilfield CNC Machining located in Lafayette, Louisiana.  Thomas is just one of the individuals that has had enough with the war on U.S. energy jobs currently be waged by some in Congress and the administration.  In his video diary, Thomas tells his personal story of how the moratorium and newly proposed taxes on the industry have affected not only his business, but his family, his coworkers, and the entire gulf community:

It is critical that the administration use sound and accurate methods in making decisions that are so vital to our future. We cannot allow the administration to downplay the impact federal policies are having on America’s energy workers, like Thomas.

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