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  • Why are Businesses Helping to Shape a Cap and Trade Bill That will Inevitably Hurt Them?

    Someone please answer that question.

    Let’s start with this: a new study from the University of Wisconsin-Madison finds that food and energy demand will outpace production to meet those needs over the next several years. The need for greater energy and food production and the jobs that could be created from seeking to meet that need is just the latest example of the opportunity costs associated with cap and trade.

    One might imagine that these increased energy demands would create a huge economic opening for American firms to fill a gap in demand and address a desperate need borne heavily by the world’s poor. Instead, Congress is devising a regulatory scheme that will severely disadvantage almost all American firms as they compete to provide the best solutions to emerging world problems.

    The Wall Street Journal was onto something when they said yesterday that the legislation requires little short of “destroy[ing] the discipline of economics.” Cap and trade results in immediate job losses to manufacturing, construction, and other major sectors of the economy, but that’s not the end of the story. It will also significantly constrain U.S. firms in taking advantage of opportunities for growth through enormous new regulatory hurdles, not to mention skyrocketing energy costs that will raise the cost of investing in new capital projects. Knowing this, the cap and trade bill evolved into a convoluted, lobbyist-constructed bill:

    “Industries and individual companies with a stake in the landmark House climate and energy bill poured money into lobbying early this year, many at a pace that could shatter previous spending records. They worked to reshape the bill. They have focused on votes, pressuring moderates, freshman and any lawmaker considered an ally. They are now in a last-gasp effort to push anyone left on the fence.

    From oil and gas companies to environmentalists, sectors with energy interests this year hired and added lobbyists. Some pushed to make pending climate legislation stronger. Others wanted wording to soften the financial blow of regulation of greenhouse gas emissions.”

    Now everyone, including Greenpeace, is expressing opposition to the Waxman-Markey cap and trade bill. Ironically, many of the same companies hired lobbyists to help shape the bill, but receiving handouts in the short-term does not mask the significant amount of economic pain these firms will face in subsequent years. And what did all this all this money spent on lobbying actually buy these firms? In all likelihood, they’re buying into a country with far less economic potential, which will force these companies to shed jobs and be less productive than they could otherwise have been.

    The only ones who aren’t represented are the consumers, who will feel the most pain from the bill, seeing their electricity prices rise 90 percent by 2035.

    These companies will come to the realization that jobs are going to disappear. Instead of producing domestically, companies will seize onto these opportunities by sending jobs overseas to places without cap-and-trade type regulations. Given that energy production there will continue likely continue at a higher rate to displace the decline in U.S. production, carbon emissions may end up increasing overall, even if emissions drop in the U.S. So all considered, cap-and-trade gives us: lost jobs today, lost jobs tomorrow, and a change in the temperature too small to notice.

    Posted in Energy [slideshow_deploy]

    10 Responses to Why are Businesses Helping to Shape a Cap and Trade Bill That will Inevitably Hurt Them?

    1. Matt, Cleveland says:

      If I were in the energy biz or in an energy-intensive industry, I would have pushed for this bill.

      When the demand increased for my product, this bill would make it impossible for upstarts and entrepreneurs to steal that increased business from me. My two or three competitors and I would have no other competition. We've already got the political connections and lobbying cash; so sorry, if you want to buy a widget, you'll have to buy from me.

      This is precisely why big business loves big government, and vice versa.

    2. Carl says:

      Comments are subject to approval and moderation. Commenting is a privilege, not a right. Please keep it clean and stay on topic. Personal attacks and obscene language will not be tolerated. Essentially, don’t say anything you wouldn’t say to your mother at the dinner table.

      The above admonition to be politically correct makes it near impossible to adequately express my disgust with Obamas puppets in Congress.

      I have been watching The House Of Reps. on CSPAN today concerning Cap and Tax and as mentioned above the Dems. are disgusting, willfully blind, self promoting xx@@#$%@. They have all opened their pockets and crammed them with cash and other considerations from lobbiests. They do not represent the people. They are for sale to highest bidder. I for one look forward to the opportunity to kick the bums out next election. That is of course if Obama doesn't , by executive order, temporarily suspend elections due our devastated economy.

    3. Cyndi, N. Californi says:

      I've also been watching C-SPAN coverage on the Cap & Tax Bill. This is outrageous! They just finished Rep John Boehner's closing statements of the 309pg. Amendment that was filed in the middle of the night. Boehner just went completely off! If this thing passes – WE ARE THROUGH! I live in CA. & we're hurting with the energy bill we already have here. This will just add to our misery & cut off any life we have left. I hate these ppl. I cant wait to get Pelosi & Waxman Out of there. Pelosi still hasn't apologized for saying CIA lied to Congress. Well it just passed the House 219-212! I Hate This.

    4. Spiritof76 says:

      Why shouldn't people advocating destruction of American economy be sent to jail? How could this be legal to kill our country paricularly for our children and grandchildren?

    5. Pingback: » Financial News Update - 06/26/09 NoisyRoom.net: “Extremism in the defense of liberty is no vice. Moderation in the face of tyranny is no virtue.” Barry Goldwater

    6. Larry Elkins,Fairvie says:

      Why should the American general public have to deal with this issue , of which they have not connsidered nor voted for? Above all, how can it be pushed through Congress or any elected body without approval from the general public that are most affected?Who are the ones pushing for the "CAP AND TRADE" when all have so much to lose and so few have so much to gain? Where are the real Americans that stand for the right —where are the leaders that We gave the privilege of serving the people with a vision of a better America and the change for the better?Is it too late to impeach those in office and find someone to adhere to our values and will seek the best for the citizens of the United States of America?I see a possibility in one man(Schuler)But We need more like Him and We as a nation need to turn the table on these corrupt individuals and pirates of the nations treasure. Im not an activist but I am considering the cost of not being–I want the best ,not only for Me and my neighbors, but for my Children.If We let this cap and trade thing go through, we have lost a large chunk of America and our cost of living will be unsurmountable——-We will die !!!!!!!!!!!!!!

    7. Larry Elkins,Fairvie says:

      Where is the voice of America? Where are those that will be adversely affected? Do I stand alone on this issue or do I have others that are aware of the overall dangers of (CAP AND TRADE) that is disguised as an energy bill! I ask all people to research this "under the rug"1200 page, ill-conceived bill that is possibly headed for a passage in the Senate. If this is the change that Obama promised, then We are in dire need for a change of presidential leadership!

    8. J. Howard says:

      The CEO of GE supports Cap and Trade, I suspect, because his company is more foreign than domestic. Regardless of what proponents of the plan say, huge job losses will come from this legislation as friendlier parts of the world laugh at our stupidity. What really bothers me is there are many areas of the energy problem that could be changed to make our nation more competitive, not less. Nuclear is clean, but, to my knowledge, we have yet to start the first generation plant in many years due to idiotic environmentalists that not even France would tolerate. Natural gas is currently selling at the equivalent of $.65/gal while dirty diesel is selling for $1.70/gal. Federal, state and local governments are suffering from huge cash shortfalls. These agencies operate fleets of service equipment, garbage trucks, police cars, etc that could be converted to burn clean natural gas while reducing their fuel bills by 2/3rds. Just how stupid can we be? NEVER VOTE FOR AN ENCUMBENT!

    9. Barb -mn says:

      Truly disappointing that ANY member of American representation, born and raised in America, have taken position in the destruction of America.

      The people of this country need STRENGTH in the members of government. All members need the knowledge of truth and honesty and common sense, to protect the citizens from this intentional demise of this nation!

      I'd like to commend those members of government that stand on strength, truth, honesty and common sense and challenge the majority to take on.

    10. Lisa Querin says:

      Please! please! Weigh ALL the pros and cons before you pass bills that will affect our childrens future! It is UNCONSTITUTIONAL to pass bills withour DEEP consideration of what it will do to everyone!!!! You cannot blame Bush any longer Its all on YOU!!!!

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