‘Cap and Trade’: 1000+ Pages of Economic Chaos

by Frank DeMartini

The American Clean Energy and Security Act of 2009, more commonly known as the Cap and Trade Bill, is dangerous for the country and potentially disastrous for the economy.  I cannot say this more simply.  This bill which is designed to lower emissions and stop global warming will do nothing except raise the average Americans’ expenses and cause the loss of many American jobs. 

The bill passed in the House last week by a margin of less than ten votes.  The vote was mostly among party lines.  However, many Democrats sensing its disastrous consequences actually voted against it.  In fact, if it were not for eight liberal minded Republicans, the bill would have failed. It is going to the Senate shortly and must be stopped there at all costs.  As for those eight Republicans, I suggest they start looking for employment themselves. 

Global warming is allegedly caused by the burning of fossil fuels.  This Cap and Trade bill is supposed to lower emissions caused by such energy sources.  It is the dream of former Vice President Al Gore who has made a mini-industry out of global warming and who does nothing personally to stop it.  This typical Democratic hypocrite burns more carbon based fuels than 10 average Americans and yet he claims that we, as a country, are not doing enough to stop this potential disaster to the planet.  I wonder when the last time he flew on a commercial airline was.  But, that’s another column completely. 

“Global Warming” is a rather controversial subject.  There are many reputable scientists that believe it is the next major ecological disaster.  In fact, some go so far as to say that it may lead to the extinction of the human race.  However, there are other reputable scientists who say that it does not even exist.  In fact, there was some controversy in the last two weeks about whether the EPA had suppressed a report that denied the existence of global warming at the request of the President.  If that report is to be believed, then it is quite clear that the current President will do anything to get his agenda through Congress. 

The liberals in control of Congress are using their substantial majorities to ram this “groundbreaking” clean air legislation through at a time when a bill that will stunt economic growth is not in the best interests of the country.  As you know, President Obama said during the 2008 election, we are in the worst economic crisis since the Great Depression.  Of course, Vice President Biden, just last week, said that the stimulus was not working because the economy was worse off than the Administration believed.  How you can reconcile those two statements is pretty much beyond me.  But, again that is the topic of another column. 

Why is this bill a disaster and how will it stunt economic growth?  The answer is very simple, but first an explanation is required about what exactly “Cap and Trade” means.  This bill will put serious limitation upon carbon and other types of emissions.  Businesses which pollute will be penalized for their pollutants in the form of higher taxes.  However, those businesses that are exceeding the emission allotments (”caps”) will be able to buy or “trade” tax credits earned by the non-polluting companies in exchange for cash or other forms of remuneration.  Hence the phrase, “cap and trade.” 

On its face, this may seem like a good idea.  But, what will happen in reality?  Companies that pollute will have a few choices:  one, meet the standards and pass the increased cost onto the consumer; two, buy credits from companies that do not pollute and pass the increased cost onto the consumer; or three, shut down in the United States and move their business to another country that does not have such regulations.  In all three circumstances, the United States population suffers, either by increased costs or loss of employment. 

How is this good for our country?  Its not!  How is it good for the world and the environment?  Again, its not.  Sending companies to foreign nations without any restraint on emissions will most probably increase the carbon based pollutants and not lower them.  Accordingly, the whole bill is a sham.  The only thing it will do is appease the liberal tree huggers that believe we are destroying the world. 

So, here we are faced with a bill that will increase costs to the consumer and cause the loss of jobs in the United States.  Just the thing we need in a time of the worst economic turndown since the Great Depression (which is not as bad as the Administration thought).  This bill should be voted down and voted down quickly. 

There are other reasons why this bill is a disaster.  How about the fact that this 1,000 page “novel,” had approximately 300 pages added to it the day before its passage in the House so that the authors of the bill Reps. Henry Waxman and Edward Markey, both Democrats, could buy the additional votes they needed to get the bill passed.  These three hundred pages that were added were earmarks pure and simple.  Additionally, I can guarantee you that almost none of the House members read the entire bill.  Maybe, a handful actually glanced at it.  In all seriousness, how can anyone read a “novel” like this overnight?  I must admit, I have not read it either.  But, I have, at least, read summaries. 

Based upon the above, it is imperative that you all call your Congressmen and Senators and make sure this disaster is stopped dead in its tracks before it causes whatever progress is being made by the ill advised stimulus package to cease.  A double dip recession and/or another stock market crash will make this the worst economy since the Great Depression and that can be worse than anyone has thought.  Next week, maybe I will talk about Obama’s next disaster, health care!


Email this to a friend | Print | Share on Facebook | | Bookmark and Share

Tags: , , ,
Posted Jul 12th 2009 at 3:02 pm in Politics | 53 Comments