Sufferers of Climate Derangement Syndrome Now Steering Economic Policies

January 19, 2022

Over the past decade, the term “climate derangement syndrome” has taken root in many corners of the internet. Climate derangement syndrome is marked by an unassailable belief that climate change is going to end life as we know it, and therefore every issue and policy must be seen through the lens of environmental impact. 

One of the many problems with climate derangement syndrome is that it ignores the very real day-to-day challenges that Americans are currently facing, such as runaway inflation and pandemic-related shutdowns. So, PTF is sad to report that many Washington policymakers tasked with setting our nation’s economic priorities have seemingly succumbed to climate derangement syndrome.

A Wall Street Journal editorial discusses the “greening” of the Federal Reserve. At his confirmation hearing in the U.S. Senate this week, Federal Reserve Chairman Jerome Powell spent time reassuring left-wing senators that the Fed had a role in climate policies:

The wheels seem greased for Mr. Powell’s confirmation if only because the alternatives are thought to be worse. We’re not sure about that, and on that score one issue to watch is how the Powell Fed uses its regulatory power to drive lending and investment out of fossil fuels and into renewables.

Mr. Powell seems fired up for the job. The Chairman on Tuesday endeared himself to progressive Senators by agreeing that the Fed’s role in climate change is “limited” but “important.” He also said climate stress tests for banks will likely “be a very important priority” in supervision.

“I think it’s very likely that climate stress scenarios, as we like to call them, will be a key tool going forward,” he added.

But why? Climate policy isn’t part of the Fed’s dual mandate, which is to ensure stable prices and maximum employment. Having botched inflation in 2021, you’d think the Fed would focus on that.

For decades, environmentalists have used ‘green’ energy policies to target the fossil fuel industry without regard for the impact these policies have on the reliability and affordability of energy. Now, they are looking to use banking policies to dry up funding for fossil fuel projects. Our nation’s financial policies should be focused on creating a growing economy with stable prices and job growth, not settling scores on behalf of environmental activists.

American workers struggling in the economy can see the utter indifference to their circumstances, and they will ultimately make their voices heard at the ballot box. But in the meantime, the rest of the nation will suffer from the side effects of climate derangement syndrome.