Archive for the ‘Environment’ Category

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Is Cap and Trade Dead?

In Environment on November 3, 2009 by driverpost

Tuesday November 3, 2009

More and more the global warming crowd are wising up and fleeing their ranks as it becomes all too clear the earth’s warming hysteria is based on false and deceptive science.  The current climate data show the earth in a cooling cycle of approximately eight years or so depending on whose data you look at.  The real numbers on global warming when taken at their extreme projected effect from carbon emissions shows only about 1/6th that alleged by the likes of Al Gore.  This is in fact within an acceptable range and even beneficial worldwide.

So not only is the science junk but the proposed “Cap and Trade” legislation would have a horrific effect on the US Economy.  For this reason lawmakers have all but killed the bill in Congress with their respective objections.

The Congressional Budgetary Office (CBO) an independent governmental body has announced that “Cap and Trade” will lower US wages and the US Gross Domestic Product.

It is certain “Cap and Trade” would cost the US jobs.  And each supposed “green job” created by government leads to the destruction of other real US jobs while costing millions of US dollars in subsidies in the process.

Stand alone “Cap and Trade” legislation if passed will be the largest tax increase ever seen by the American Public.  That alone has given Congress great pause.  Many of these lawmakers have had townhall meetings in their states and know full well that a vote for “Cap and Trade” means a hard sell to their constituency, who will not forget which way they vote.  That would make their reelection hopes dim at best.

President Obama has endorsed other countries as shining models for ‘green energy’ production, however, when you take a closer look their example is one of heavy subsidy with little or no benefit to the consumer or effect on the environment.

When you compare energy created by coal vs. wind generated energy: for every US Dollar spent on coal-fired energy it takes approximately $148 US Dollars spent on wind generation to produce the same amount of energy.

The bottom line is heavy tax burdens on the American public with a decrease in production of energy while little or no effect on the environment.  And when the money runs out we will be forced back to more stable and reliable energy sources.  Which means the so-called ‘green jobs’ created by government go away with the end of the bankrupt subsidies.

Take a look at the stellar examples that President Obama holds up for us to admire in Germany, Denmark, and Spain.

If we choose to model the US after Germany, the comparative price-hike from government’s “green electricity” would mean an average increase of about 2.2 cents US per kWh to the US consumer.  That is about 19.4% increase in cost for electricity on average to every US household.

The ‘green jobs’ creation would be a debacle for the US as it has been for Spain.  In Spain for every ‘green job’ created there are 2.2 jobs in other sectors that have been destroyed.  Spain’s government spent $758,471 to create each ‘green job’ and used $36 billion in taxpayer dollars to invest in wind, solar, and mini-hydro from 2000-2008.

With all the talk about wind generated power, one would begin to think it is a viable option for the energy market, no so, take a look at Denmark where ‘green energy’ generated by wind power recently met as little as 5% of Denmark’s annual electricity and had a C02 neutral effect.  Also, Denmark’s wind industry would not exist without extensive government subsidies.

These subsidies spent on ‘green energy’ by Germany, Spain, and Denmark alone show that such energy generation is not just grossly unprofitable at its current level of development but having little effect if any on the environment.

In the face of such overwhelming evidence, to push forward hard with “Cap and Trade” legislation is not just unwise by the Obama administration and the Democrats in Congress it is grossly unintellectual, we just call it plain stupid.  And, it is fiscally reckless in a time of great economic woes in the US already.

It seems that environmentalists don’t see government expenditure as having a cost.  They employ the same free-lunch fallacy that underpins all the ‘green energy’ subsidies to increase employment.  In college, the first few weeks in an Economics 101 class is dedicated to the problem with free-lunch assumptions. Perhaps the White House and Congress need to take a refresher course.

Remember when the US government spends money on ‘green energy’, it necessarily diverts labor, capital and materials from the private sector that would be used to create real jobs and growth in the US economy.

The “Cap and Trade” legislation would essentially be a mandate for higher energy prices and the destruction of more jobs throughout the process in a time when we are seeing double-digit unemployment in most US States.

“Cap and Trade” legislation would cause consumers to spend less, businesses to spend less as both would be faced with higher energy prices.  Businesses would be forced to make production cuts and reduce labor.  The consumer would definitely see a price hike in consumer goods as a direct result from a hike in energy costs which would spur an increase in production and transportation costs.

Under “Cap and Trade” legislation, businesses faced with higher production costs will be force to move their plants to other countries where costs of operation are cheaper to maintain feasibility and profits for their shareholders.

Everything about “Cap and Trade” legislation means less jobs and higher taxes and prices for the US consumer.

Analysts see the proposed ‘green energy’ economy destroying 1.9 million jobs by 2012 and 2.5 mill by 2035 despite the so-called ‘green jobs’ created.

Remember, ‘green jobs’ are created by the US Government and are not a product of the free market and therefore will not survive without such subsidy since they produce nothing and cannot survive alone in the market place with out government subsidy to prop them up.

In the real world outside of Washington, the US Government subsidizing or mandating ‘green jobs’ will yield fewer overall US jobs and a weaker US Economy.

The notion of  “if you build it they will come” by the Obama Administration, thinking that if somehow the US leads the way in ‘green energy’ the world will follow is laughable to nations such as China and India.  These countries have given little assurance that they would follow suit with the US.  They have only indicated that it would take significant implementation in the US before they would consider undergoing such measures in their own countries.  So when they see the utter futility and economic ruin it causes they will continue to laugh and say “no thanks” to the “Cap and Trade” option while they take advantage of our misfortunes.

Many governments in the world see “Cap and Trade” in the US as an opportunity to move their currency and goods up against the US Dollar and US Goods in the world market place.  They welcome the prospect of the US being relegated to a third world country economy in status and a redistribution of its wealth.

It is clear to all but the global elite and the liberal US administration and Democrats in Congress that “Cap and Trade”, which is predicated upon unfounded scientific evidence, is a dangerous and destructive policy currently for the US economy, especially in these difficult economic times.

In truth “Cap and Trade” is not saving the planet, it is an attempt by some on the left at an ideological overthrow of the US with financial vested interests.

We all want a cleaner and healthier environment.  And the free market will invest in alternative energy when it is feasible to do so without mandates from the government.

Lord Monckton, former senior science advisor to Margaret Thatcher, recently has visited the U.S. to make the US Citizen aware of the evils of the treaty at Copenhagen which would subject the US to a global ‘green dictatorship’.

Lord Monckton, “the Treaty of Copenhagen, negotiated by the UN on climate change (Dec) establishes for the first time a global government.”

He also said, “The UN One World government will transfer wealth from the wealthy countries, i.e. the US, to third world countries as ‘reparation.'”

“This Reparation is for ‘climate debt’ the U.N. believes the US owes the world due to fossil fuels causing ‘manmade global warming’.”

Here we have a British Citizen defending the US, if only we had such loyal and clear thinking members of Congress.

This statement made by Lord Monckton we would do well to heed, “the US is the cradle of freedom, cling to democracy, fight this sinister treaty, remain the beacon of freedom for the world.”  Lord Monckton in interviews throughout the US has said the same for “Cap and Trade”.  It is a destructive and dangerous course for the US.

It is a sad day indeed to see a day in the US where someone from a foreign land would have more regard for our own interests than those in our own government.

Is “Cap and Trade” dead?  Not completely, shot down and wounded in Congress for sure, so keep the pressure on your Senators to finish the job of killing the dangerous and destructive legislation call “Cap and Trade”.

Randy Driver – Driver Post