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Economic Growth and the Environment: Not-So Strange Bedfellows
Political pundits try to marry environmentalism to one end of the political spectrum and free market economics to the other. The problem with this is that they aren’t at opposite ends of any spectrum. This is evident to anyone attending this week’s Engineering and Humanity Week at Southern Methodist University in Dallas, Texas, sponsored by Hunter and Stephanie Hunt and SMU's Lyle School of Engineering. Located smack dab in the middle of SMU’s beautiful campus, the Living Village at SMU is literally home to several students and faculty members during this week-long exposition. Students and faculty members have designed and built sustainable housing units that are prototypes for affordable housing solutions for the world’s poor and refugees. So how does this work hand-in-hand with free market economics and economic growth? The connecting element is innovation. Entrepreneurs take existing resources and find productive uses for them, often using resources in entirely new ways. This is exactly what the Living Village at SMU has done. One example is David Pennington, better known as “Aquaponic Dave,” from Poetry, Texas. Aquaponic Dave showed me how he has combined concrete with Styrofoam to produce a new building material. Reusable Styrofoam is highly plentiful in the U.S., and Dave has found a way to “use Styrofoam’s biggest weakness (it doesn’t deteriorate) and turn it into its greatest strength (it doesn’t deteriorate).” His Styrofoam-and-concrete mixture is fireproof, waterproof, an excellent insulator, and extremely low cost to produce. While I am not about to sell my house and move my family into an Aquaponic Dave home, his environmentally friendly prototype homes exemplify the entrepreneurial genius that has driven the American free-market economy. The energy markets are a great example of this on a national scale. Over the past 50 years, more and more of our oil supply has come from imports. Oil and gas producers have known for years that vast reserves of natural gas exist domestically, but they are just “stuck” in shale rocks. Creative ingenuity and entrepreneurship led to the shale gas revolution. Figuring out how to extract the gas has led to a huge increase in the supply of natural gas. The result is falling prices for natural gas, which have translated into savings for Americans. This has also allowed our country to begin to think about moving away from expensive oil imports in favor of domestic gas production. The bonus is that natural gas is much more environmentally friendly. Entrepreneurs drive the economy. Their small businesses create jobs, create efficiency in the markets, and boost production. Regulations, taxes, and government inefficiency slow down entrepreneurs and kill growth. We have an abundance of resources (natural and reusable) and human ingenuity in this country to efficiently grow the economy and at the same time be responsible environmental stewards. Don’t let anyone tell you otherwise.
Michael McMahan currently serves as Vice President of Corporate Planning and Development, overseeing all fundraising activities and events as well as integration of long-term revenue planning for Bush Institute and public programming work.
Previously, he worked as Vice President, Strategy and Planning. In this capacity he coordinated strategic planning and strategic partnerships across the Bush Center. He also worked as Director, Institute Policy and Planning and as Program Manager for the Bush Institute’s economic growth initiative.
McMahan is a licensed member of the Texas Bar, and prior to joining the Bush Center he was an energy law litigator. He served in the George W. Bush Administration at the U.S. Department of Energy in the Office of Policy and International Affairs. He is a graduate of the University of Texas (B.A., Economics) and Southern Methodist University’s Dedman School of Law (J.D.).
McMahan serves on the board of the Dallas Urban Debate Alliance and is a founding board member of the Dallas chapter of America’s Future Foundation.Full Bio
Trading Down: Protectionism Reduces Prosperity
Unilateral tariffs on Chinese products just raise prices for American families and are unlikely to produce a real change in Chinese behavior.
Don't Fall for Protectionism
“Protection will lead to great prosperity and strength.” In light of these words from President Trump’s inaugural address, his decision to levy tariffs on imports of steel and aluminum is not surprising. Those words also foreshadow his Administration’s withdrawal from the Trans-Pacific Partnership soon after he took office. And they provide a key to his Administration’s stated objectives in renegotiating NAFTA and the U.S.-Korea Free Trade Agreement. It may not have been clear to all of the many millions of people in attendance that day just how important those words were. With those words, the President announced a fundamental change to an American approach to trade that has guided our nation’s policy for almost a century – a century in which, not coincidentally, the United States became the wealthiest and most powerful nation on earth. In the NAFTA negotiations and, now, with the steel and aluminum ta
Trade Scores a Touchdown with Super Bowl Snacks
Whether you prefer pizza, wings, or chips and guacamole, the food on your table plays a large role in international trade.