The $20 Trillion Question: How to Spend It and How Not To

$20 trillion is a lot of money.

One would expect a big bang to follow the spending of twenty-thousand billion dollars. It’s a lot of money! It’s pretty much the total present value of America’s GDP.

This is the sum that was globally spent — largely by Europe and the United States — in a coordinated effort by the developed world to decarbonize the global economy. China, in contrast, sold the world windmills and solar panels while it opened a new coal-fired power plant per month.

What was the net effect of this “Green" Marshall Plan? Hydrocarbon consumption continued to increase anyway. All that was achieved was a tiny reduction, just 2%, in the share of overall energy supplied by hydrocarbons. Put simply, as the energy pie got bigger and all forms of energy supply increased, hydrocarbons ended up with a slightly smaller share of a larger pie.

We also saw the de-industrialization of the European and American economies — not just with higher prices at the gas pump and on electric bills, but a stealth green tax that was passed on to consumers on everything. This is the culprit of our American and global affordability crisis. So much treasure and pain for a 2 percent reduction in the share of hydrocarbons.