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  • Obama: 'Under My Plan, Electricity Rates Will Necessarily Skyrocket'


    When President-elect Barack Obama discusses his cap-and-trade policy (it gets good around the 32-second mark), at least he acknowledges “electricity rates will necessarily skyrocket.”

    I’m not sure why this isn’t getting more attention. People in this country were outraged when gas was $4-per-gallon. They assumed oil companies were artificially keeping prices high. But Heritage energy expert Ben Lieberman asks:

    If large oil companies really were responsible for creating last summer’s high prices, why would they give them up so quickly? And if speculators were capable of profiting by driving prices ever higher, why would they allow themselves to be caught holding the bag in a free fall?”

    The moral of the story: markets work, if we let them. The problem is, however, that Obama admittedly recognizes his cap-and-trade plan artificially distorts the market and thus raises prices significantly. But does he understand the true extent of these costs? And does he overestimate the purported benefits of reducing carbon dioxide?

    When we make decisions, there are trade-offs. There are costs and benefits to every decision made by individuals and every bill implemented by Congress. To help understand costs versus benefits, economist Walter Williams always provides the extreme example of Congress mandating a 5-mile-per-hour speed limit law. Without doubt it would reduce the tens of thousands of traffic fatalities but think of all the inconvenience, delays, and frustration that would result from this law.

    The problem is: the benefits to cutting CO2 are negligible. Even the Environmental Protection Agency found that a 60 percent reduction in CO2 emissions by 2050 in the U.S. alone would affect world temperatures by 0.1 to 0.2 degrees C. It would take a global policy with the same cuts to reduce world temperature by just 1 to 2 degrees C.

    What about the costs? Heritage’s Center for Data Analysis calculated the costs of global warming legislation in the U.S. alone and the cumulative GDP losses for 2010 to 2029 approach $7 trillion. Single-year losses exceed $600 billion in 2029, more than $5,000 per household. Annual job losses exceed 800,000 for several years. That’s a scary price to pay for what little benefits we receive.

    This isn’t a knock on Obama. Sen. John McCain would have readily signed a cap-and-trade bill if he were elected president. But he wasn’t and Obama was. Some members of Congress have backed off a cap-and-trade plan because of the economic damage it would inflict. It’s time to realize this isn’t good policy. Not now. Not ever.

    Posted in Energy [slideshow_deploy]

    13 Responses to Obama: 'Under My Plan, Electricity Rates Will Necessarily Skyrocket'

    1. Dale Sawtell Seattle says:

      Having sold energy the most of my working life. This has to be the worst bill that has ever been thought of, we are not GOD everytime congress play's with nature they mess it up. This bill is just an added tax that will do nothing for The environment and will destroy the economy of our nation.



    2. JustBelieve says:

      This is sad to say but Heritage foundation is a conservative right wing research center that includes their bias opinion. This isn't necessarily true that cost will rise. Profit will fall and the owner can't have that. They claim they 'have' to lay people off. Which isn't true. Owners need to realize they have to start taking pay cuts for everyone to survive. Cap N Trade isn't enough. Change the Economy entirely by adding more effiecent wind energy and solar. Second use the oceans to create energy. We have the capiblities to do all of this but the upper-upper elite can't stand the idea of losing just a little bit for the better of humanity. Its always about them. They drag us down with them in this sinking pit.

    3. Mike says:

      The bottom line is that Cap and Trade will create Jobs!! Gas can be .90 cents a gallon and electricity rates can be .01 per kWh, if we don't have something to create jobs I'm afraid the American people won't be able to afford those rates as well.

    4. Patrick Bell, Vienna says:

      Cap-and-trade (or cap-and-tax, if you prefer), is a seriously wrong-headed approach for reducing CO2 emissions.

      Think of all the politically powerful firms in the U.S. that would shape the legislation to their benefit. Designing an environmentally effective policy would be near impossible.

      Free permits? Sure, and plenty of them–firms in Europe made windfall profits by passing on the "costs" to their customers.

      Loose cap? Why not. But what happens when emissions aren't actually reduced? Emissions in Europe have actually risen under the emissions trading scheme there.

      External credits? Yep! Forget about reducing emissions in the U.S., let's outsource it to somewhere in the developing world.

      So what's the point at the end of the day, other than a massive redistribution of wealth? Ah, now we're getting somewhere.

    5. R.Reagan, Butte, MT says:

      Those of us living in very cold Winter climates will be really hurt under Pres.-Elect Obama's plan. Climate change is occurring all the time and it is a natural phenomenon. The Sun is the major agent of "Climate change." CO2 is not and can not be a major "agent" in climate change. The oceans are a natural "sink" of CO2. When the oceans are colder, they will hold more dissolved CO2. When oceans warm, dissolved CO2 is released to the atmosphere.

    6. Barb -mn says:

      JustBelieve, wind and solar are not efficient. How about the government members taking a pay cut? They're the ones working for us. Just Believe if we had a government that could accept the truth! Man cannot control nature. If the government didn't have all the unnecessary regulations to conduct business, we would have jobs.

      Heritage doesn't include bias opinions. They think things through, unlike the government.

      Just think if we were free to be as we once were, self-reliant(natural instinct taken away daily by the government). And if people weren't so taken by the smooth talking senator, they would know the truth. Just think if the government could comprehend LOGIC. They get paid everyday to take more and more away while we are presenting more solutions that wouldn't bring the country down but actually build it up. Just believe, Obama wants to bring the country DOWN and all those that love and respect it down with it.

    7. Shawn Alley says:

      This is very troubling especially with what happened with gas prices. The American People need electricity just like they need natural gas. He better be very careful or he will have a bigger crises on his hands. Him and liberal democrats want us to be dependent on the government.

    8. Mike Sheahen, Hickor says:

      Thomas Jefferson truly and wisely said: "Present a problem to a ploughman (plowman), and a professor; the former will solve it at least as well and often better than the latter because he has not been led astray by artificial rules".

      What does that have to do with it?

      What that has to do with it is: If, while the Leftists/Socialists (led by such as Al Gore) make Environmentalism the new home of International Socialism, through such as the dumbing-down of Americans, and seeking to stampede us into it with such as their specious scare-mongering about "Greenhouse gasses", etc, students and teachers/professors really and truly "do their homework", without any preconceived notions, and if us citizens would really and truly "check it out", without any preconceived notions, we will all find such as the following fact.

      To wit: The number one (#1) most prevalent and predominant so-called "Greenhouse gas" is water vapor!

      So, if the earth's environment is so powerless and vulnerable to man and such so-called "greenhouse gasses", then that makes water vapor the "evil Siamese Twin" of that other horribly destructive element, which "causes" unconscionably untold damage, destruction, illness, and even death around the Globe, Bihydrogen Oxide, a.k.a. H2-O, a.k.a. water!

      What about Carbon Dioxide?

      Well, the Leftist/Socialist "environmentalists" won't tell you this, as part of their efforts to dumb-down Americans and stampede us into their Socialim, but if you really and truly think independently and "do your homework", you will find that they are trying to stampede us off a cliff into their Socialism, like dumbed-down lemmings, through their scare-mongering about such as Carbon Dioxide!

      Think about it!

      Question:What do animals, and many trees, plants, and crops, etc, all put out? Answer: Carbon dioxide!

      So considering the predominance of, and likewise powerful effect and influence of, water, water vapor, plants, trees, crops, and animals, etc; plus, considering the earth's numerous, incomparably powerful, overwhelming, overruling, and on-going capabilities and actions (including the violent ones), above and below the sea, now comes another question.

      Question: What do you suppose produces so much so-called "greenhouse gasses" as to turn man’s insistence upon his own self-importance into that of an infinitesimal gnat, with the flatulent ego the size of the gas giant Jupiter, ignoring, omitting, and otherwise trying to "shout down" anything to the contrary, including the either untold or denied influence of the Sun and the Earth combined?

      Answer: The Earth!

      So, we certainly cannot afford to drink any more Leftist/Socialist environmentalist “Kool-Aid”, especially since there is overwhelming factual, economic, and environmental evidence proving that such government elitist regimes are the most hostile to and abusive of freedoms, economy, and environment.

    9. Thomas Gray South Ca says:

      The purported benefits of reducing carbon dioxide is what is wanted by the greens but what is really driving this is the money, manufacturing and all industry is a how many trillions and trillions of dollars?

      So the elite the socialist the greens and the government are all pulling each others chains to try and put in place these take everybody's income cap and tax $ trade emission's regulation's.

      On another topic of the greens,

      a compromise that would let oil companies drill for natural gas in limited parts of the Roan Plateau in northwestern Colorado, is a plan that most environmental advocates oppose.

      The greens oppose all the energy forms we are currently using and the users of that energy.

      MY conclusion is we are dealing with people that do not live in reality.

    10. Jason, WA says:


      Help me out here, how exactly does Cap and Trade create jobs. When the mandate from the government of retrofitting power plants, factories etc is handed down, the first thing that will be discovered is that the current workers do not have the require skills to complete such a task. The company will be required to seek expertise outside the organization at a massive cost which will cause job loss. Let's also not forget that when you pass this cost on to the consumer, generally revenues decline creating additional job loss. What you are saying is the equivalent of saying that raising the minimum wage creates a higher standard of living.

    11. Pingback: How to Stop Obama’s War on the Middle Class « Conservative Thoughts and Profundity

    12. Silberstein, Sun Cit says:

      Dear Justifiably hand-wringers over O'Bama: "Cap & Trade" makes profits for dweebs like Al Gore, because he is INVESTED in industries that will benefit from cap & trade,–a new, giant TAX on the way to the Socialism…what the Globalists…desire,–irregardless of what you & I & the average taxpayer want. The Marxist-Socialists have INDEED gone into Eco-nazi non-profits, and seek to tie-up/crash ALL USA industry/lifestyles, because they think,due to "climate change", the governments of the world will then limit/reduce their populations of people. The CONGRESS (–even some Democrats) CAN STOP O'bama's dreams (–our nightmares) cold, if we can convince them we'll never vote for them again, if they support O'Bama-ian energy lunacies, like "Cap & Trade". I'd OPPOSE GOD, if HE wanted to institute "Cap & Trade" anywhere. Of course, God would NEVER be SO STUPID! Having been BEATEN in the Hanoi Hilton for YEARS, McCain is mentally compromised,–that's WHY he's always crossing the aisle to be a RINO/play Democrat. Bad policy should NEVER be put up with, no matter who "likes" it. Kathleen Kennedy may yet be another Lib-Dem who has drunk the "climate-change Kool-aide". She certainly is a MORON, for she supports Socialism, and Socialist govts KILLED 110 MILLION people in the last century, in or out of war.

    13. Connie Agree, PA says:

      This bill is meant to collapse the economy. Then, we will all be slaves to the state. They said that they want to "rebuild the country". Too many communists surrounding this President…very bad days are ahead, unless we can get more people to wake up.

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