It must have been a late night for one of the headline writers at the Washington Post. That’s the best explanation we can think of for the seriously misleading headline on a generally balanced story by reporter Juliet Eilperin.
The story is about the testimony of the head of the Congressional Budget Office, Douglas Elmendorf, who appeared before a Senate energy panel yesterday.
The article points out that Elmendorf went out of his way to say the costs of shifting to clean energy would be “comparatively modest” and that his analysis didn’t even include the heavy cost of failing to take action to slow climate change. He estimated a very small economic difference under the clean energy bill over a long period of time.
The headline writer summed it up this way: “Cap-and-Trade Would Slow Economy, CBO Chief Says.”
This is extremely misleading since many readers will interpret this to mean that economic growth would actually turn negative, which is absolutely NOT what Elmendorf said.
What he said (and what Eilperin reported) is what’s reflected in the CBO analysis – that the economy is expected to grow strongly and thrive whether we pass a carbon cap or not. If we do nothing, the American economy would reach $25 trillion by January 2030; if we pass a cap on carbon, it will reach the exact same size of $25 trillion by May of 2030 (and that’s a conservative estimate – we’d reach that between March and May). And, remember, that projection doesn’t include the economic benefits of avoiding the worst impacts of climate change.
What is confusing in the headline is that “economy slowing” has become shorthand for “panic, it’s a recession” — which is the opposite of what Elmendorf was talking about. What Elmendorf actually said is that a cap would “cut the nation’s gross domestic product … compared to ‘what it would otherwise have been.’” The CBO finding was that a carbon cap would cut GDP “0.25 to 0.75 percent” by the year 2020. Again, that’s a cut from what it would have otherwise reached without the policy — not a cut from where the economy stands now.
To put that in perspective, if you had to cut the Post article by the same amount, you’d need to edit out – three or four words. Or, to cut that headline proportionately you’d have to – lose half the “s” on the end of the last word. That’s a tiny amount, and certainly no reason to panic – unless you’re looking for a reason to panic so you can try to kill a clean energy bill.
Read more in EDF’s latest Climate Economics Brief, Or read the CBO report itself. And check out National Wildlife Federation’s comments on, as they call it, the Post‘s “scare headlines” — we’re flattered that they used an EDF graph to help make their case.