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Mike Carey appears before Senate EPW Committee - Exchange with Senator Barrasso

Coal, Coal Jobs, and Cap-and-Trade



Those who doubt coal's economic significance should read the testimony of Mike Carey, President of the Ohio Coal Association, delivered before the EPW Committee on Oct. 29. And those concerned about the nation's 10.2 percent unemployment rate should do the same. Carey cited a Penn State University study on the link between coal jobs and the broader economy.

As Carey recounted, Penn State found that "every coal worker supports up to eleven other jobs in their community, from shop keepers and barbers to restaurant workers to railroad employees." Morever "every $1 billion in U.S. coal production stimulates a total production of $3.138 billion of production throughout the economy." This means, according to Penn State, "that every dollar of net coal industry production translates into $3.14 of economy-wide output." So coal is good, and coal jobs are good jobs, as Carey explained. "Let me tell you what a ‘real' job - a coal mining job - means," he told the committee. "It means a steady, above-average wage, benefits and a sense of community as mines last for decades in the same location." Further, he said that, "Given the above average wages and benefits, coal miners enjoy the highest standard of living in Appalachia." In Ohio, for example, coal workers make on average just over $64,000, nearly $25,000 more than Ohio's average yearly income. "So these high paying jobs," Carey testified, "not only fuel our nation's energy, but also our community's economy and the economy of the entire region. Link to Full Testimony Of course, as Carey claimed with ample evidence, the Waxman-Markey, Kerry-Boxer wrecking ball would destroy these jobs and the communities they support. Carey believes cap-and-trade will cause "real hardship and a loss of jobs and a massive reduction in the standard of living for communities, States and regions across our country." During the hearing, in an exchange with Sen. John Barrasso (R-Wyo.), Carey punctuated his written testimony by describing the clear and present danger of cap-and-trade for America's coal workers: (Click here to watch Barrasso-Carey exchange) BARRASSO: Mr. Carey, you talked about different areas of the country, California, the West Coast, the Northeast is doing well under the cap-and-trade regime or regimen. Most states and regions do not. And so when I -- I look about what's happening in -- in the coal- producing areas, Ohio, West Virginia, Kentucky, Wyoming, where do those folks go and what do they do if some of these jobs are eliminated? And you yourself have said these are very good-paying jobs. CAREY: Madam Chairman, Senator Barrasso, you know, the -- the question is a good one. Where do they go? And -- and, quite frankly, if you're looking in Appalachia, in Ohio or West Virginia or western Pennsylvania, they simply have nowhere else to go. One of the things that I say in my written testimony, as well as my oral, is the fact that one of the things that coal-mining families own is their home. And who's going to buy that home if -- if the jobs aren't going to come into eastern Ohio, western Pennsylvania, and West Virginia? BARRASSO: And I think you stated that some of the coal-mining jobs were paying about $25,000 a year higher than the average income in -- in Ohio? CAREY: Again, Senator, yes, that's -- that's exactly right. And when you look at the region, as Senator Voinovich knows, when you look at the region of Ohio where those coal-mining jobs are located, these are higher, way above the 25 percent higher that -- that it is in the state average. It's much higher than that. These jobs in Appalachia, in Kentucky, West Virginia, your home state of Wyoming, Ohio, they are some of the best-paying jobs in their region, period. BARRASSO: And it's not just the -- the specific income dollars. You're talking about health benefits, retirement, long term. I mean, what I see is a number of people who want to get their sons and daughters into these jobs, as well, because it's a good way to be able to raise a family, put bread on the table and clothing on their back, get good educations for the kids and opportunities. CAREY: That's -- that's right, Senator.

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