Category Archives: Commentary

What will cap and trade mean for American consumers?

The Heritage Foundation posted this summary of the top ten points regarding cap and trade.

Cap and Trade Top Ten List
1. Cap and Trade Is a Massive Energy Tax
2. It Will Not Make A Substantive Impact on the Environment
3.
It Will Kill Jobs
4. It Will Cause Electricity Bills and Gas Prices to Sharply Increase
5. It Will Outsource Manufacturing Jobs and Hurt Free Trade
6. It Will Make You Choose Between Energy, Groceries, Clothing or Haircuts.
7. It Will Be Highly Susceptible to Fraud and Corruption
8. It Will Hurt Senior Citizens, the Poor, and the Unemployed the Worst
9. It Will Cost American Families Over $3,000 a Year
10. President Obama Admitted “Electricity Rates Would Necessarily Skyrocket” under a cap-and-trade program. (January 2008)

I can help with number 4: the energy price increases for consumers are right here, courtesy of Michele Bachmann.

Their post goes on to list and analyze the effects of various legislation proposed by Democrats in terms of number of jobs lost and amount of money confiscated from the private sector for the government to spend. It’s amazing how many times Democrats tried to destroy the economy while Bush was President. And now they will finally be able to do it!

The article also mentions how many jobs will be lost by the proposed green jobs programs, as well as how many jobs will be outsourced to China and India, who will enjoy a manufacturing boom since they are not capping their emissions at all.

That’s right, let’s be clear on that:

The Ultimate Outsourcing: India and China have repeatedly said they would not match U.S. environmental goals in order to protect their economies. Cap and Trade will merely move manufacturing jobs to China and India.

There are people I know who voted for Obama who are worried about their jobs. They complain to me about outsourcing. They do not understanding that Obama causes outsourcing by taxing “the rich” and regulating “greedy corporations”. What a tragedy! Defeated by your own ignorance!

The 10 part series on cap and trade

The Heritage Foundation has also started a nice series of 10 posts about what cap and trade will do to the economy. In this series, they are going into a lot more detail than in the summary posted I talked about above.

Part 1 is called Cap-and-Tax is a Jobs Destroyer.

They explain cap and trade:

It works like this: Policymakers set a cap on the amount of carbon dioxide and other greenhouse gases that can be omitted into the atmosphere. Each power plant, factory, refinery, and other regulated entity will be allocated allowances (rights to emit) six greenhouse gases. However, only a certain percentage of the allowances will be allocated to these entities. The remaining percentage will be auctioned off or distributed to other emitting entities. Most emitters will need to purchase at least some allowances at auction. Emitters who reduce their emissions below their annual allotment can sell their excess allowances to those who do not–the trade part of cap-and-trade. Over time, the cap would be ratcheted down, requiring greater cuts in emissions.

So this is basically a tax on energy production. Yes, Democrats think that we produce too much energy, employing too many Americans, and that we sell it for too little money. According to Democrats, we need less production, fewer jobs and higher consumer prices for electricity. And other companies who use energy will have to pay more for it as well.

Take a look at this graph showing projected job losses under the Liberman-Warner cap and trade bill:

Jobs lost from Lieberman-Warner bill
Jobs lost from Lieberman-Warner bill

Click the image for a bigger version.

Now let’s take a look at Part 2, which is called Cap and Trade will force you to make budget cuts.

Again, Heritage explains how cap and trade transfers money out of the private sector, where money is used to produce goods, into the public sector, where money is wasted by bureacrats on bicycle paths and gold monuments to Obama.

…if President Obama were to sign a cap and trade bill into law, he would have to call for familial budget cuts much greater than one dollar. (For a brief explanation of how cap and trade works, go here.) As recently acknowledged by a top White House official, a global warming tax could generate as much as $1.9 trillion in tax revenue over eight years, which amounts to a nearly $2,000 tax every year for every American household.* Add this up over the period of a few years and we’re talking about trillions of dollars in lost income for the entire U.S. economy.

And here’s the chart:

How much will cap and trade cost you?
How much will cap and trade cost you?

I hope the people with low income who were hoping to become rich under Obama won’t be too shocked to find that the poor do better under capitalism not socialism. I mean, I hope they don’t drop their television remote controls and doughnuts.

Save us Michele Bachmann!

Actually, she did save us on that mortgage cramdown bill that I blogged about while back. So my pleading is not in vain.

UPDATE: Good news! Michelle Malkin says the cap and trade tax is in trouble! It turns out that the Democrats in manufacturing-intensive states are aware of what the tax will mean to their unemployment rate.

Yesterday, I noted Henry Waxman’s debate-evading maneuvers to try and facilitate passage of the massive eco-tax/”climate change” bill.

The NRCC sent out a helpful fact sheet outlining why the radical green plan is really in trouble. You can thank opposition from Democrats in manufacturing and energy-producing states.

Michelle has all the citations from the Democrat politicians who are never going to vote for this mess. So, good news!

UPDATE: My post on the fraud involved in the “polar ice caps are melting” myth.

How do Democrats plan to improve health care?

I think it’s important to be clear about what their goal is for their seizing control of reforming health care.

The Heritage Foundation says this:

Earlier this month in Chicago, Rep. Jan Schakowsky (D-IL) told a rally of government-run health care supporters: “I know many of you here today are single payer advocates and so am I … and those of us who are pushing for a public health insurance don’t disagree with this goal. This is not a principled fight. This is a fight about strategy for getting there and I believe we will.”

And let’s be clear about how they mean to do it:

Recent SCHIP expansion and additional Medicaid funding in the stimulus package made a substantial down payment on major expansion of government run health programs. Established research shows that a public health plan will ”crowd out” private insurance, forcing millions of Americans off their current plans, and away from their family doctors. A public health plan, coupled with Comparative Effectiveness Research, would engineer artificially lower prices for medical services through the imposition of Medicare-style price controls. Such Medicare-style payment levels would undercut the market share of existing private health plans, and, combined with a mandate on employers, stack the incentives against workers in private employer-based health insurance by encouraging their employers to dump them into a new government-run health plan. Watch the video of Rep. Schakowksy’s statements on The Foundry. She clearly admits that the purpose of the government run option is to kill private insurance so everyone eventually is forced into government-run health care.

And the result is also known:

Moving all Americans into a government-run health care system will not only bankrupt our country, but will lead to less innovation in the health care sector and lower quality care for all Americans.

This is what people who vote for Democrats will get. It’s not what they expected, but it’s what they’ll get.

How socialism undermines family, community and the dignity of labor

UPDATE: Welcome visitors from Free Canuckistan! Thanks for the link, Binks!

I saw this amazing post over on the Pugnacious Irishman, and I would highly recommend you take a look at it. Rich comments on an essay by Charles Murray on whether the United States should start implementing European-style social policies.

Here is Rich’s summary of the Murray article:

In the annual Irving Kristol Lecture given at the American Enterprise Institute Dinner, he argues that while such Europe-style policies might produce an economic benefit or two, they are ill conceived because they suck the meaning out of life.  They do this by enfeebling the institutions necessary for robust meaning in life: family, community, vocation, and faith.  Lastly, he argues that in the next few decades, science will provide ample evidence that such policies are ill conceived.

But how does European democratic socialism destroy human flourishing?

Murray writes:

To become a source of deep satisfaction, a human activity has to meet some stringent requirements. It has to have been important (we don’t get deep satisfaction from trivial things). You have to have put a lot of effort into it (hence the cliché “nothing worth having comes easily”). And you have to have been responsible for the consequences.

There aren’t many activities in life that can satisfy those three requirements…. Let me put it formally: If we ask what are the institutions through which human beings achieve deep satisfactions in life, the answer is that there are just four: family, community, vocation, and faith.

…It is not necessary for any individual to make use of all four institutions, nor do I array them in a hierarchy. I merely assert that these four are all there are. The stuff of life–the elemental events surrounding birth, death, raising children, fulfilling one’s personal potential, dealing with adversity, intimate relationships–coping with life as it exists around us in all its richness–occurs within those four institutions.

Seen in this light, the goal of social policy is to ensure that those institutions are robust and vital. And that’s what’s wrong with the European model. It doesn’t do that. It enfeebles every single one of them.

And then comes Murray’s central thesis. Big government socialism, by taking responsibility away from individuals in the areas of importance and meaning, actually causes more problems than it solves. Murray calls this government involvement in these areas “taking the trouble out” of life.

Murray continues:

The problem is this: Every time the government takes some of the trouble out of performing the functions of family, community, vocation, and faith, it also strips those institutions of some of their vitality–it drains some of the life from them.

It’s inevitable. Families are not vital because the day-to-day tasks of raising children and being a good spouse are so much fun, but because the family has responsibility for doing important things that won’t get done unless the family does them. Communities are not vital because it’s so much fun to respond to our neighbors’ needs, but because the community has the responsibility for doing important things that won’t get done unless the community does them. Once that imperative has been met–family and community really do have the action–then an elaborate web of social norms, expectations, rewards, and punishments evolves over time that supports families and communities in performing their functions.

When the government says it will take some of the trouble out of doing the things that families and communities evolved to do, it inevitably takes some of the action away from families and communities, and the web frays, and eventually disintegrates.

…We have seen growing legions of children raised in unimaginably awful circumstances, not because of material poverty but because of dysfunctional families, and the collapse of functioning neighborhoods into Hobbesian all-against-all free-fire zones.

This next point is something I first read about in George Gilder’s book “Men and Marriage”. When the government steps in and takes away the responsibilities of a man, especially husband and father responsibilities, it destroys the male will to be a responsible contributor to society. If the welfare state awards money to women to raise children without the father, what honor is there in being a good man?

Earlier, I said that the sources of deep satisfactions are the same for janitors as for CEOs, and I also said that people needed to do important things with their lives. When the government takes the trouble out of being a spouse and parent, it doesn’t affect the sources of deep satisfaction for the CEO. Rather, it makes life difficult for the janitor. A man who is holding down a menial job and thereby supporting a wife and children is doing something authentically important with his life. He should take deep satisfaction from that, and be praised by his community for doing so. Think of all the phrases we used to have for it: “He is a man who pulls his own weight.” “He’s a good provider.”

If that same man lives under a system that says that the children of the woman he sleeps with will be taken care of whether or not he contributes, then that status goes away. I am not describing some theoretical outcome.

I am describing American neighborhoods where, once, working at a menial job to provide for his family made a man proud and gave him status in his community, and where now it doesn’t. I could give a half dozen other examples. Taking the trouble out of the stuff of life strips people–already has stripped people–of major ways in which human beings look back on their lives and say, “I made a difference.”

Murray’s article and Rich’s commentary continue, but for me this was the important point. When government distributes wealth, it gets involved in the decision-making of the most important areas of life: marriage, education, parenting, taxes, etc. Speaking as a man, when you take away choice and responsibility from me, you cannot expect me to engage in work or family or community in the same way I would if I were in charge.

By the way, I explained why European socialism leads to the decline of religion in a previous post.