Cap and Trade

Will the Greening of America destroy Her?

Cap and Trade

Postby Walt » Sun Jun 28, 2009 5:23 am

Cap-and-trade bill is an economy-killer.

The U.S. House of Representatives Friday voted for yet another hugely expensive program that has virtually no chance of achieving its intended goals.

The House passed the American Clean Energy and Security Act by a razor-thin margin, 219-212.


The legislation's goal is to stave off global warming by mandating reductions in the emission of carbon dioxide.

Its result will be the loss of millions of American jobs, a huge increase in energy costs and higher prices for virtually every product manufactured in America. And after Americans have paid that enormous price, there will be virtually no reduction in the amount of carbon dioxide emitted worldwide.

The Waxman-Markey legislation, co-written by our own Massachusetts Congressman Edward Markey, D-Malden, requires the United States to reduce carbon dioxide and other greenhouse gas emissions by 17 percent from 2005 levels by 2020 and by about 80 percent by the end of the century.

To achieve these "caps", the bill sets up a system of trading pollution credits. Businesses would buy and sell permits to emit a certain amount of carbon dioxide per year. Thus, such a system is known as "cap and trade."

The folly of this scheme is plain. One cannot add a huge new cost (for the permits) without producing an increase in prices for products made here or the flight of manufacturers to countries where no cap-and-trade costs apply.

Estimates of the costs of the cap-and-trade bill vary widely. The Congressional Budget Office estimates a cost of just $175 a year by 2020. Critics, however, note that date is before most of the tough restrictions take effect. The Heritage Foundation estimates the total cost per family from 2012 to 2035 will be $71,493.

European nations locked themselves into the carbon-trading regimen several years ago. The results have not been pretty.

Two years ago, a story in the Washington Post laid out the disastrous European experience with cap-and-trade for all to see. Among its cautionary tales: a Dutch abrasives manufacturer that can't afford the electricity to operate full time; French cement factory workers losing their jobs to third-world competitors; dramatically higher energy costs for consumers and questionable success in hitting carbon dioxide targets.

Worse, by shifting production from efficient factories in the developed world to the Third World, where no emissions restrictions exist, total worldwide carbon dioxide output will increase.

Finally, the cruelest hoax behind the Waxman-Markey bill is that "green" jobs will be created here to replace those lost to foreign competition.

"Green" jobs are a chimera, based on the fallacy that government mandates can make a whole new sector of the economy appear on command. A Spanish study found, based on that nation's experience, that the United States can expect to lose 2.2 jobs for every "green" job created. And each of those "green" jobs will come at a cost of nearly $803,000 in government subsidies.

This bill will hurt American competitiveness, destroy jobs and cost all Americans dearly. There remains a chance to stop it in the Senate. :bailout: :wtf:
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Walt
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Postby Walt » Sun Jun 28, 2009 5:32 am

Did anyone catch that? Obama's Clean Energy will cost each American family $3500 per year. Do you have that in your budget? :wall: :crazy: :doggie:
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