From Center for Economic and Policy Development comes this framing….Global Warming and the Which Way Is Up Problem in Economic Print
It is painful to read Eduardo Porter’s column on the prospects for slowing global warming and China’s greenhouse gas emissions. It’s not that Porter got anything in particular wrong; he is presenting standard projections that are the basis for international negotiations. Rather it is the framing of the trade-offs that is painful.
Porter poses the question of the extent to which China should be willing to slow its economic growth to curb its greenhouse gas emissions, as opposed to rich countries like the United States bearing more of the burden. The reason this is painful is that most folks might recall that our major economic problem at the moment is secular stagnation.
In case people forgot, this is a problem of inadequate demand. The story is that we don’t have enough demand for goods and services to keep our workforce fully employed. As a result we have tens of millions who are unemployed, underemployed, or who have given up looking for work altogether. This is not just a U.S. problem but one that afflicts much of the world.
More at CEPR.