Cap and Trade is an issue that, even though I don't fully understand how it works, seems like it will make things worse for our economy.


My friend Joel Skousen, Editor of "World Affairs Brief" understands it much better than I do.  "What the Obama administration has rammed through Congress in the name of saving the environment is not only a hoax of draconian proportions (that Carbon Dioxide is a harmful pollutant, responsible for Global Warming) but also a means to mandating government control over all forms of energy production. By implementing an arbitrary and restrictive cap on the production of Carbon Dioxide (17 percent by 2020, compared to 2005 levels), and then forcing high CO2 producers to buy carbon credits from zero or low CO2 producers this bill will alter and distort the current cost structure of the markets and not actually change the amount of CO2 put into the atmosphere at all. In essence this is a massive wealth transfer scheme from efficient energy producers to inefficient producers, and energy users everywhere will pay for this multi-billion dollar boondoggle."


Congressman Ron Paul had this to say about it:  "The Cap and Trade Bill HR 2454 was voted on last Friday. Proponents claim this bill will help the environment, but what it really does is put another nail in the economy's coffin. The idea is to establish a national level of carbon dioxide emissions, and sell pollution permits to industry as the Catholic Church used to sell indulgences to sinners. HR 2454 also gives federal bureaucrats new power to regulate a wide variety of household appliances, such as light bulbs and refrigerators, and further distorts the market by providing more of your tax money to auto companies. The administration has pointed to Spain as a shining example of this type of progressive energy policy. Spain has been massively diverting capital from the private sector into politically favored environmental projects for the better part of a decade, and many in Washington apparently like what they see. However, under no circumstances should anyone serious about economic recovery emulate an economy that is now approaching 20 percent unemployment, where every green job created, eliminated 2.2 real jobs and cost around $800,000 each! The real inconvenient truth is that the cost of government regulations, taxes, fees, red tape and bureaucracy is a considerable expense that has to be considered when companies decide where to do business and how many people they can afford to hire. Increasing governmental burden directly causes capital flight and job losses, as Spain has learned. In this global economy its easy enough for businesses to relocate to countries that are more politically friendly to economic growth. If our government continues to kick the economy while its down, it will be a long time before it gets back up."