Republicans start 2018 with two big economic accomplishments under their belts. The first is passing the $1.5 trillion tax-reform package. The second is withdrawing from the Paris climate treaty and rolling back the Obama administration’s Clean Power Plan, in effect repealing an Obama tax hike that would have cost Americans $1.3 trillion over eight years.
Cutting taxes is what successful Republicans do. Every Republican president since 1980 who subsequently won reelection cut taxes in his first term. By contrast, President Trump’s pro-growth energy policies are very much his own idea. Perhaps others in the field of 17 primary contenders in 2016 would have acted similarly (such as Ted Cruz), but others would not (such as Jeb Bush), and it’s hard to imagine any of them appointing Scott Pruitt to head the EPA, who has turned out to be one of the stars of the Trump administration.
The potential economic gains are colossal. According to Heritage Foundation’s Kevin Dayaratna, over the next eight years ending the war on hydrocarbon energy will generate 900,000 jobs, add $1.9 trillion to the economy, and cut electricity prices and household energy bills with negligible effects on the climate and sea level. Fully taking advantage of fracking and America’s vast hydrocarbon reserves to 2035 would increase GDP by $3.7 trillion — equivalent to America’s adding two and a quarter Texas-size economies — and make an average family of four over $40,000 better off, all with a temperature change of less than three thousandths of a degree Celsius and a sea-level rise of less than one hundredth of an inch. Like all the best policies, in retrospect, Trump’s energy policies will appear obvious common sense.
While Trump is pushing hard on the gas pedal to accelerate the growth of the American economy, his opposite number in Paris is applying the brake. At President Macron’s behest, in December, the French parliament passed a law banning all production of oil and gas in France and its overseas territories from 2040. Casting himself as savior of the planet, a week earlier, Macron hosted a One Planet summit, ostensibly to commemorate the second anniversary of the Paris climate accord.
A sycophantic promotional video of the event shows the planetary hero planning the summit lunch as an Elysée Palace flunky serves coffee from a silver tray, then hugging guests on their arrival. Like millions of visitors to Paris before them, they board a Bateau Mouche and view the sights of Paris as they sail down the Seine. Everyone looks bored as Macron speaks, apart from the hero’s wife, Brigitte, and his lead supporters (“really good, really fantastic, congratulations,” Arnold Schwarzenegger tells him).
It all looks a bit stale. There’s a roundtable with former secretary of state John Kerry. Michael Bloomberg, Bill Gates, and Richard Branson are given front-row seats. “We are in the middle of losing this battle,” Macron tells them. There are, he claims, five, ten, 15 heads of governments whose nations will disappear in 50 to 70 years’ time. It’s hardly an inspiring rallying cry.