The coal industry’s significant role in the U.S. economy often goes unnoticed. Primarily, coal fuels electricity generation, with a large portion of America’s power originating from it. Low coal prices translate to cheaper electricity, which in turn stimulates economic growth.
Electricity is a vital $200 billion commodity in the United States. Stable or decreasing prices in major commodities like electricity help maintain low inflation. These commodity price movements serve as reliable economic indicators.
Low electric rates, resulting from affordable coal prices, can influence current and future inflation. These low rates can protect savings and investments. The increasing use of technology, like computers, cell phones, and personal data organizers, drives up electricity consumption, boosting the economy both through purchases and energy usage.
There’s a clear link between electricity demand and economic activity. Historically, a 1% increase in GDP has led to roughly a 1% increase in electricity demand.
Beyond electricity, coal contributes to the economy through job creation, revenue, and taxes. The coal industry supports over 90,000 jobs in the U.S. and nearly 1 million worldwide.
Coal-related work accounts for approximately $37 billion in earnings, nearly 1% of all American earnings. The annual value of coal produced in the U.S. is around $18 billion. Coal mining’s direct and indirect impact on the U.S. economy totals $161 billion annually, or $596 per U.S. citizen.
Even states without coal mining, like California and New York, benefit economically from coal. In fact, every U.S. state experiences economic benefits from coal.
Coal businesses contribute over $11 billion in federal taxes and $9 billion in revenue to state and local governments annually.