Cap & Trade Part II

First, let me apologize for how long this has taken to post Part II. I've had some personal issue to manage and I also wanted to make sure I researched this thoroughly to bring you the facts.

The economic impact of this bill will be catastrophic. It is just another form of government taking over control of another sector of industry here in America. In an interview with the San Fransisco Chronicle, B. Hussein Obama said himself that, "The problem is not technical and the problem is not mastery of the legislative intricacies of Washington. The problem is, can you get the American people to say, “This is really important,” and force their representatives to do the right thing? That requires mobilizing a citizenry. That requires them understanding what is at stake. And climate change is a great example." He goes on to say, " When I was asked earlier about the issue of coal, under my plan of a cap and trade system, electricity rates would necessarily skyrocket. Even regardless of what I say about whether coal is good or bad. Because I’m capping greenhouse gases, coal power plants, you know, natural gas, you name it — whatever the plants were, whatever the industry was, they would have to retrofit their operations. That will cost money. They will pass that money on to consumers." This is a direct hit on the wage earner. Especially on the middle class who are already struggling to make ends meet in this Obama economy. But it hits wage earners on two fronts. Not only with the increased rates in electricity, but those who live off of the government dole and have their utility bills paid by tax payers. Barbara Boxer (D-California) said there will be no new taxes. But how is this true? Rates will increase, therefore taxes will have to increase in order to pay for those living off of the dole. How else do they intend to pay for it? But that is just the tip of the iceberg.

When electricity rates have "skyrocketed", it's going to increase the cost of doing business. In order for companies to survive, they have to pass that cost along to consumers. The cost to ship goods from factories throughout the country will be astronomical. Pump prices they say will go over $5.00 per gallon. I think that's a very conservative estimate. Just last summer, pump prices were over $4.00 per gallon without this marxist bill in place. Look for $7-$8.00 per gallon if it does pass. Of course, this is just my opinion, but look at the facts. If we do see $7.00 per gallon fuel prices, it will cost some people living in rural America more to work than if they just sat at home and did nothing because of the commute they must take to their jobs.

In May of 2009, CRA International, an economics, finance, and business consulting firm, working with businesses, law firms, accounting firms, and governments, prepared a report on the impact of the Cap & Trade Bill for the National Black Chamber of Commerce. According to the report, the most important conclusion is that, contrary to some claims that have been made recently, policies such as ACESA (American Clean Energy and Security Act) will have a cost. Therefore the judgment about what action to take cannot be made simply on the grounds that a cap-and-trade program will create additional jobs and stimulate economic growth – it will not – but on whether the benefits are worth the cost. And it needs to be recognized that the benefits of any action by the United States alone are limited because of the relatively small share that the United States will contribute to global emissions over the next century. This analysis reveals that businesses and consumers would face higher energy and transportation costs under ACESA, which would lead to increased costs of other goods and services throughout the economy.

Also in the report is the transfer of wealth to other nations. According to the report, ACESA contains provisions that will transfer wealth from the U.S. to other nations. These include allocations of allowances to overseas entities for international adaptation and purchases of offsets from foreign projects. It is estimated that these provisions of ACESA would result in a transfer of U.S wealth to other countries varying from $40 billion to $60 billion per year in the years 2012 through 2030. Some possible circumstances can cause these amounts to be even larger.

All in all, the economic impact of this bill will increase energy costs, it will be the single highest tax increase in American history and will result in the loss of millions of jobs. All of this for more control over business and our personal lives over the myth of global warming.