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Thursday, July 22, 2010

Cost of Kerry-Lieberman Climate/Energy Legislation, Part II

In response to U.S. Senators John Kerry (D-MA) and Joseph Lieberman (I-CT) proposing “The American Power Act of 2010” (also known as Kerry-Lieberman), the American Council for Capital Formation and the Small Business & Entrepreneurship Council (SBE Council) yesterday published an economic analysis (done by Science Applications International Corporation) of the bill.

As noted in yesterday’s blog entry, the bill would weigh heavily on the U.S. economy in terms of lost GDP, lost industrial production, increased energy costs, and lost jobs.

In terms of employment, the loss in jobs could hit 500,000 in 2025, and 1.9 million as of 2030. On the manufacturing front, job losses could reach 700,000 by 2030. And manufacturing would carry 69%-74% of the overall job losses.

It’s important to keep in mind that manufacturing is overwhelmingly about small and mid-size firms. According to Census Bureau data, 74% of manufacturers have fewer than 20 employees, and 98.6% have less than 500 workers.

Kerry-Lieberman would strike serious blows against U.S. manufacturing, American small business, and our economy.

Raymond J. Keating
Chief Economist
Small Business & Entrepreneurship Council

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