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  • Waxman-Markey Cap and Trade's Biggest Losers: Construction

    waxman-markey-construction-new

    Everyone knows someone who works in construction. It’s one of those unwritten facts of life. If policymakers in Washington have their way, you’ll soon be able to say you used to know someone who worked in construction. That’s because the current cap and trade plan, proposed in the U.S. House of Representatives by Henry Waxman (D-CA) and Ed Markey (D-MA), will dramatically raise the cost of using energy. And construction is, well, energy intensive. Even without cap and trade, The Energy Information Agency projects industrial sector growth in construction will fall because of rising energy prices and increased international competition.

    Waxman-Markey will make it worse. When you want people to use less of something, you tax it. Of course, Waxman-Markey is trying to achieve this goal in the most inefficient way possible. The legislation has become so convoluted that it has become lobbyists gone wild, fighting for your tax dollars. It’s highly susceptible to fraud, and because most of the allowance handouts have been given away, it’s almost certain there will be no reduction in CO2, which has the environmental activists up in arms. (Of course, the reduction in carbon from Waxman-Markey wouldn’t make a difference, anyway.)

    The goal of cap and trade is for people to use less energy, and the only way policymakers can make that happen is if they tax energy high enough for people to reduce consumption. But as energy prices rise, producers will raise their prices out of necessity. However, because consumers will be constrained by their budgets, the consumption of energy-intensive products and services will decline. Construction is a perfect example. Facing their own budget constraints, companies will build less and unemployment in the construction industry will dramatically increase. The Heritage Foundation’s Center for Data Analysis modeled what would happen under Waxman-Markey and the news is grim for the construction industry. The legislation would increase unemployment in the industry for every year modeled, 2012-2035. By 2012, 280,000 jobs will be gone in the construction industry; the figure breaches 500,000 by 2025. There will be over 1 million fewer jobs in the construction industry as a result of cap and trade beginning in 2031.

    Where will all those shovel-ready jobs be if Waxman-Markey passes?

    Posted in Energy [slideshow_deploy]

    7 Responses to Waxman-Markey Cap and Trade's Biggest Losers: Construction

    1. joe says:

      good, too many gas guzzling pick-up trucks down here in Florida. Too many jobs dependant apon biulding more townhouses and shopping strips. Do we really need another Walgreens? They should sharpen thier skills and put solar panelling on my roof instead of looking to get work at the next big golf coarse development.

    2. Don, Wheeling, WV says:

      Cap and trade simply interferes with capitalism. We don't need larger more pervasive government. Even many democrats are opposed to this legislation. Perhaps joe should work on his spelling and logic.

    3. Pingback: » Financial News Update - 06/25/09 NoisyRoom.net: “Extremism in the defense of liberty is no vice. Moderation in the face of tyranny is no virtue.” Barry Goldwater

    4. virgie v. martin, od says:

      The fossil fuel infrastructure in this country is massive and will leave millions of miles of pipelines and other facilities to be left to rot and ruin. If you think the environment is bad now, wait until this legislation is passed. The average citizens spends more time paying their monthly utility bills than our "leaders" have spent reviewing the Waxman-Markey bill. All those who participate in this travesty on the American citizens must remember that the tide goes both ways.

      Regards,

      Virgie V. Martin

    5. Susan says:

      If you think unemployment is high now??? If this is passed through senate, we will be paying more for everything. The unemployment will be millions more. More forclosures and

      sky high gas and energy bill.

      Something else to have a czar for so the goverment will be able to regulate everything. This will not bring more jobs this will be the end!

    6. Pingback: India Says ‘Pass’ On The Green Kool-Aid | novatownhall blog

    7. Pingback: Rush Limbaugh Speaks on Real Estate | Come2OK.com

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