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BENERGY Module 2: Lesson 2

Affordable Energy Keeps America Financially and Politically Strong 

Lesson Objectives

By the end of this lesson, you will:

  • Explain how low-cost, reliable energy supports America’s economic and political strength. 
  • Identify key sectors (manufacturing, transportation, agriculture) that depend on affordable energy. 
  • Analyze how rising energy costs—especially from rapid renewable transitions—can cause energy poverty. 
  • Discuss real-world trade-offs between affordability, reliability, and clean energy goals. 

Part 1: Why Affordable Energy = Industrial Power

Think

What would happen if the cost of energy to American manufacturing increased dramatically  overnight and remained higher? 

Write

In your notebook, provide answers to the 6 questions below and the reasoning behind your answers (the Why) as to what would happen if the cost of energy to American manufacturing increased dramatically overnight. 

  1. Would America and Americans be in a stronger or weaker political position on the global stage (in relation to other countries)? Why/Why not? 
  2. Would American industrial jobs increase or decrease in number? Why/Why not? 
  3. Would America produce more or less industrial goods? Why/Why not? 
  4. Would Americans buy more or fewer American made goods? Why/Why not? 
  5. How would these changes affect your life or the lives of your family members?” Why? 
  6. Would America be in a better or worse competitive position in the world? Why/Why not? 

What We Know

Historically, when energy prices are significantly higher in a given nation, the following happens: 

  • Jobs are lost or shipped out to nations that can supply energy more inexpensively to its industrial base 
  • Industrial production diminishes 
  • Transportation of goods to and from factories diminishes (because fewer things are made in that nation) 
  • Jobs are lost or shipped out to nations that can supply energy more inexpensively to its industrial base 
  • Industrial production drops and is taken by nations that can supply power more inexpensively to industry 
  • Every part of the U.S. economy—from factories to food prices—depends on cheap energy. 
  • Countries with affordable, reliable energy have competitive manufacturing and strong exports
  • The U.S. economy thrives when energy prices are stable and low—fueling innovation and jobs. 

Did You Know

  • The average U.S. household spends ~6–7% of income on energy (EIA).* 
  • Low-income households may spend 15–30% of income on energy.* 
  • When energy prices spike, inflation rises (gas, food, shipping). 
  • Affordable, reliable energy = lower cost of living, stronger economy. 

* These facts are based on Net Income, not Gross Income. What’s the difference? Your employer pays you $500 – That’s gross income. THEN, taxes, social security, etc are removed from your $500 leaving you with only about 75% of the total – That’s net income. The government gets $125, you only get to keep and spend $375 on energy and everything else.  

Discussion Prompt

Engage in a discussion with your parent/teacher using the question: 

How do their answers differ from or are similar to what you just learned about energy use in industrial production? 

“How do low energy prices help U.S. companies compete with China or Europe?”

Part 2: The Cost of Transition 

  • Key Point 1: Renewable technologies like wind and solar are intermittent—they need backup power and storage, which raise system costs. 
  • Key Point 2: Upgrading the grid for renewables can cost trillions, leading to higher rates for consumers. 
  • Key Point 3: As energy prices rise, working families pay more for basics—heating, cooling, food, and fuel. 

Data Snapshot 

  • Between 2020–2024, electricity prices in some states with aggressive renewable mandates rose 15–25%
  • Energy poverty = when a household spends >6% of income on energy. Currently affects 1 in 5 low-income families
  • Germany’s energy transition (Energiewende): power costs doubled since 2010; households now pay >35¢ per kWh vs. U.S. average ~16¢

Real-World Example

  • When natural gas prices spiked in 2022, fertilizer plants (energy-intensive) shut down, raising food costs. 

Think-Pair-Share 

“How might rising energy costs affect the price of things like groceries, streaming subscriptions, or air conditioning?” 

Part 5: A Strong America = An Energy Secure America 

Cheap Energy Builds Strength, Expensive Energy Builds Dependency 

  • Key Point 1: Renewable technologies like wind and solar are intermittent—they need backup power and storage, which raise system costs. 
  • Key Point 2: Upgrading the grid for renewables can cost trillions, leading to higher rates for consumers. 
  • Key Point 3: As energy prices rise, working families pay more for basics—heating, cooling, food, and fuel. 

Did You Know

  • The average U.S. household spends ~6–7% of income on energy (EIA).* 
  • Low-income households may spend 15–30% of income on energy.* 
  • When energy prices spike, inflation rises (gas, food, shipping). 
  • Affordable, reliable energy = lower cost of living, stronger economy. 

* These facts are based on Net Income, not Gross Income. What’s the difference? Your employer pays you $500 – That’s gross income. THEN, taxes, social security, etc are removed from your $500 leaving you with only about 75% of the total – That’s net income. The government gets $125, you only get to keep and spend $375 on energy and everything else.  

Activity 

Create a 3-part infographic using Microsoft PowerPoint, Mac Keynote, Google Slides, or even a TikTok-style summary* titled:  

“Energy Prices → America’s Power → Your Wallet” 

  • Slide 1: Cheap Energy = Strong America 
  • Slide 2: Rising Costs = Energy Poverty 
  • Slide 3: Smart Balance = Affordable + Reliable + Clean 

* if you do not have access to these online platforms, simply draw them into your notebook. 

Share

Now, use your slide presentation to present to and teach your parent/teacher and family what you learned about how an energy secure America equals a strong America 

Wrap-up Question

In your notebook, do your best to imagine and create a brief American energy policy that would balance affordable, reliable, and clean energy goals while also protecting American families from energy poverty.

Then, share your policy position with your parent/teacher and family. 

Key Takeaways

Affordable energy is the foundation of economic strength and national security

Rapid, costly energy transitions risk pushing Americans—especially working families—into energy poverty

Reliable, low-cost energy empowers American innovation, independence, and influence on the world stage. 

Exit Ticket Quiz

Exit Ticket Quiz: Affordable Energy = Strong America

1 / 10

Why is affordable energy considered the backbone of a strong economy?

2 / 10

What sector of the U.S. economy is most directly affected by rising electricity prices?

3 / 10

How does cheap energy make U.S. products more competitive globally?

4 / 10

What is energy poverty?

5 / 10

Which statement best describes a potential downside of rapid renewable energy transitions?

6 / 10

Why did Germany's electricity prices rise sharply after its energy transition (Energiewende)?

7 / 10

What happens to everyday costs when energy prices rise?

8 / 10

How does being a net energy exporter strengthen America politically?

9 / 10

What is one major risk of relying too heavily on imported renewable technologies?

10 / 10

Which balanced approach best protects American families and keeps the nation strong?

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 COURSE NAVIGATION

  Module 1: Why Energy Matters
Lesson (1) (2) (3) (4) (5) (Test)

  Module 2: Why Affordable Energy Matters
Lesson (1) (2) (3) (4) (5) (Test)

  Module 3: Why Reliable Energy Matters
Lesson (1) (2) (3) (Test)

  Module 4: Why Clean Energy Matters
Lesson (1) (2) (3) (4) (Test)

  Module 5: Be a BENbassador
Lesson (1) (2) (3) (4) (Test)