We are used to hearing about how far behind the curve the United States is on energy. Just today, we were reminded that Germany and China will gobble up our future since we have failed to invest in solar and wind technologies, in particular, photovoltaic fabrication plants.

Actually, that’s not quite true. There are quite a number of PV plants in the U.S., just not any using the technology touted by the New York Times reporter.

And as for wind: did you know that “China is going to eat our lunch and take our jobs on clean energy.” That is not true either. Current wind generating capacity in the U.S. is just shy of 30,000 MW, larger than any other country, including Germany (24,000 MW) and China (13,000 MW).…

Last August, the the United States Environmental Protection Agency (EPA) graded itself on its enforcement of the Clean Air Act (CAA) in terms of economic benefit-cost analysis. Surprise not: EPA came up with an astounding $31 of clean air benefits for every dollar of cost. That, and Administrator Lisa Jackson can leap tall buildings in a single bound.

Deja Vu: EPA’s 1997 Study

Back in 1997, the EPA credited itself with providing $22.2 trillion in benefits at a cost of a half trillion dollars from enforcing the CAA from 1970 (when the EPA was established) through 1990 (when Congress amended the CAA in stricter form)—a B/C ratio of more than 40-to-1.

Of the EPA’s $22 trillion net benefit estimate (gross benefits less cost), economists Randall Lutter and Richard B. Belzer wrote: “We know of no professional economist independent of EPA who takes the EPA’s estimate seriously,” for—if actually true—the sum would equal “roughly the aggregate net worth of all U.S.…

[Editor note: Mr. Epstein, a new Principal at MasterResource, is Founder of the Center for Industrial Progress. Part II of this post is here.]

In the wake of two recessions following two fleeting, largely service-sector bubbles—the dot-com bubble and the housing/financial bubble—America’s intellectual and political leaders are championing the need for industrial progress.

The ubiquitous Thomas L. Friedman takes on the subject of industrial progress in his latest book, That Used to Be Us, coauthored by political scientist Michael Mandelbaum. The book begins by describing a China full of fast trains, stupendous buildings, and an aura of dynamism—and contrasting it to an America in which repairing a subway is a multi-year project. Such images resonate with readers and voters, who wonder with frustration why so much industrial innovation, production, and job-creation is happening overseas rather than in America.…

“The energy boom in North America demonstrates that competition and technology are powerful forces; indeed, markets work. When the price system is allowed to work, technology is brought to bear on supply (more) and demand (less) to the benefit of economies everywhere.”

Gone are the days of growing scarcity in the North American oil patch–and increasing petroleum imports from unstable regimes overseas.

The new consensus–that North American energy is plentiful and will remain so to at least the year 2040–is not based on hopes and hype. Over the last five years North America has experienced a true energy revolution, and it is continuing apace.

U.S. oil production is at its highest level since 1992, at over 7 million barrels per day (mmb/d), and Canada’s output exceeded 4 mmb/d at the end of last year, its highest level ever.…