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  • Window Dressing Cap and Trade Won’t Make the Costs Go Away

    Last year Senators John Kerry (D-MA) and Barbara Boxer (D-CA) rolled out a companion cap and trade bill to the Waxman-Markey version that passed in the House of Representatives. Boxer-Kerry was essentially dead on arrival so Senator Kerry went back to work, this time with Senators Joe Lieberman (D-CT) and Lindsey Graham (R-SC). Although Senator Graham is urging his colleagues to slow down, Senators Kerry and Lieberman are trudging forward and have introduced the American Power Act – the latest big climate change bill. Subtitled, “A New Start for Clean American Power and a New Economy,” this bill fails when it comes to energy production and job creation. APA is a new climate bill that tells the same old story: corporate handouts that raise energy prices for years to come.

    John Kerry made his sales pitch in The Hill today saying, “There’s a reason why people and American businesses that have always opposed and fought against previous legislation – quite successfully! – are standing behind this one.” It’s because they were offered a seat at the table leaving the rest of America to pick up the tab. Take the words of one major electricity CEO who said, “We don’t flinch from the charge that, yes, some of our motivation and enthusiasm comes from the fact that we should make money on it if it happens.” As the Competitive Enterprise Institute’s Chris Horner stresses, the handouts will go to the businesses that won the lobbying battle while the costs will be passed onto the consumer. It’s no surprise “influence spending” is up 25 percent for the first quarter of 2010 compared to last year.

    Other sections of the bill attempt to win support but are nothing more than gimmicks. Farmers, for example, are exempt from CO2 reductions requirement and have the potential to earn revenue through a domestic carbon offset program where farmers can use cleaner technology, use cleaner insecticides, or even not grow crops. In other words, farmers will be paid to reduce their emissions. But carbon offsets won’t compensate for the lost income farmers incur because of higher energy prices. Farmers use a lot of electricity, a lot of diesel fuel, and a lot of natural gas-derived chemicals and fertilizers to grow crops and maintain their farms. The result could be income losses in the billions. This is merely one section in a nearly 1000-page bill that grants the government more control over our economy and aims to protect certain groups at the expense of others.

    For all the Americans who didn’t have a seat at the table, the story is not as glamorous. This is a significant tax on energy that will reduce Americans’ income and destroy jobs. Neither cap and trade nor any of its variations can protect consumers. The whole reason for a cap and trade system is to drive up energy prices high enough for people to use less. Despite claims that consumers will eventually save money and that the will be rebated back to the consumer, the net effect is that consumers still pay more for energy and income and savings will fall. In spite of the best attempts by households and businesses to adjust to CO2 caps, the ensuing higher energy costs impose extraordinary losses on the economy. Even a recent analysis from the Congressional Budget Office shows net job losses from carbon capping policies.

    And what’s it all for? Climatologist Chip Knappenberger modeled the environmental benefits and found, “The global temperature “savings” of the Kerry-Lieberman bill is astoundingly small—0.043°C (0.077°F) by 2050 and 0.111°C (0.200°F) by 2100. In other words, by century’s end, reducing U.S. greenhouse gas emissions by 83% will only result in global temperatures being one-fifth of one degree Fahrenheit less than they would otherwise be. That is a scientifically meaningless reduction.”

    This is not a jobs bill, nor is it an economic stimulus or a pollution reduction bill. Dress it up however you’d like. It’s still an energy tax that will inflict significant damage on the American economy.

    Posted in Energy [slideshow_deploy]

    10 Responses to Window Dressing Cap and Trade Won’t Make the Costs Go Away

    1. LibertyAtStake, Alex says:

      Ron Paul was right – at least in their current incarnation – America's Leftist Elites are Corporatist to the core.

      http://libertyatstake.blogspot.com/
      [For a light hearted take on our present peril]

    2. Samurai, Tokyo says:

      Cap & Trade and the whole Anthropogenic Global Warming movement are complete hoaxes. It's all about global redistribution of wealth. Some reports say the Chicago Carbon Exchange will generate $1.4 trillion/year by 2020…

      Who will get all this money? Third-World countries will get the lion’s share because of their dismal industrial production. Moreover, Third-World countries will be further dissuaded from building their economies as they'll be paid not to industrialize, not to plant crops, not to build their infrastructure–complete insanity. The long-term economic repercussions will be catastrophic.

    3. J.C. Hughes, Texas says:

      It's this continued cavalcade of Beltway nonsense that makes me wish Texas would secede from such a dysfunctional and overreaching legislative body. Like most Americans, I'm very unhappy with the current congressional leadership. They've willfully abused their constitutionally limited custodial power. I'm looking forward to this upcoming November. A good house cleaning has been long overdue.

    4. Lloyd Scallan - New says:

      Crap and Tax by any other name (America Power Act) is still Crap and Tax. It's the socialist way. When the American people reject something, they just change

      the name without changing anything else. It's all about how next to deceive the

      people of this country. It's the Obama Way!

      "Who get the money?" Just look at the board of directors of the Chicago Carbon

      Exchange and learn just how Al Gore, Obama, and many in his administration

      are involved. Whoe gets the money? Not third world countries. They do!

    5. sarasota, Indiana says:

      This whole thing is a huge lie , just like the health care bill is and the rest of the so called socialist { communist } crap that is going to be coming after it! We don't want to have to pay for health care insurance and we don't want to pay for air so we can run our own buisness. Sure the climate is in trouble but that is about 12 thousand years from now! Obama is a communist and must be removed from office! He is cancer and he keeps getting deeper and deeper into us! We are going to have to find a way to get together and stand together so we do not have this communist tyranny imposed upon us! Together we stand divided we fall and that is what he is counting on. That communist suck weasel in the white house is pure evil and should be impeached!

    6. Pingback: The Patriot's Flag » American Power Act (Cap & Trade)

    7. Pingback: » Financial News Update – 05/13/10 NoisyRoom.net: The Progressive Hunter

    8. Pingback: American Glob » Blog Archive » Friday Fun Blog Roundup!

    9. Jim - Ohio says:

      I WISH THE LIBERALS AND PROGRESSIVES WOULD 'GO AWAY' AND LET

      US LIVE OUR LIVES WITHOUT BABYSITTING WASHINGTON. JOHN KERRY,

      YOU ARE A WASTE OF SKIN AND BONES. PLEASE DONATE YOUR BODY TO A BURN VICTIM ANS DO SOME GOOD.

    10. Pingback: Kerry and Lieberman Unveil Their 1000 Page Cap and Tax Bill Supported by GE and BP :: The Lonely Conservative

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