Tag Archives: Carbon Tax

Democrat energy policies lead to higher unemployment and higher utility bills

Here’s an editorial from the sensible Washington Times. (H/T ECM)

Excerpt:

The federal government is ushering in 2011 with new powers that will jack up energy costs for consumers. In the name of fighting unproven climate-change theories, bureaucrats are pushing through tough new business restrictions on emissions from energy plants that light and heat homes across the country. As a result, Americans in the near future may be forced to pay a hidden tax in their electric bills or, worse, find themselves in the dark and cold.

The Environmental Protection Agency’s new rules, which take effect Jan. 2, will impose limits on carbon dioxide. The EPA’s primary targets are coal-plant operators, who will be forced to choose between retrofitting their facilities with expensive emissions-control equipment and cooling towers or shutting them down. Democratic Sen. John D. Rockefeller IV – whose West Virginia coal-country constituents have the most to lose from the tough emissions restrictions – announced Friday that he had failed in his 11th-hour attempt to force a Senate vote to suspend the regulations before they take effect. His measure would have delayed for two years the new emissions requirements for power plants, refineries and manufacturing factories under the Clean Air Act.

A study released Dec. 8 by the Brattle Group, an economic consultancy, found that the new EPA rules could force the retirement of older power plants that produce 50,000 to 67,000 megawatts of electricity, or roughly 20 percent of the nation’s coal-fired power plants. As many as 70 million homes could be subject to blackouts, according to American Solutions, an advocacy group for conventional energy. Equipping remaining plants to comply with the mandates would cost $100 billion to $180 billion, the Brattle report warned. Those expenses would be passed along to consumers in the form of higher electric bills.

But it’s no problem, because we can just buy more oil from nations that sponsor terrorism and ship our jobs overseas. The Democrat party is the pro-terrorism and pro-outsourcing party. They want you to pay more for oil and gas, and they want to enrich nations that are hostile to American interests abroad. The moratorium on drilling, the subsidizing of “green jobs” programs, the blocking of new refinery construction, the blocking of new nuclear power plants, and so on, all add to higher gas prices and higher energy prices. This means less money in to bank accounts of working families for the things that working families need.

How the Democrat push to pass cap-and-trade costs jobs

Consider the words of this CEO from an IBD editorial.

Excerpt:

T.J. Rodgers, CEO of Cypress Semiconductor, isn’t surprised. In an interview Thursday with Neil Cavuto on Fox News, Rodgers saw the move as part of a brewing corporate revolt against an overbearing government sucking the economic oxygen out of the room, tilting at windmills, imposing burdens such as the health care overhaul and environmental regulations but not providing the incentives or certainty that companies need to plan and survive.

“When we continue to put money into bad things, take money out of the productive sector, take money away from me to invest, take money away from families to spend on what they think is right, and dump it into these foolish government projects and blather about green jobs,” Rodgers said, “you know eventually the overall economy is going to get less competitive and some sort of recession or some sort of problem is going to set in.”

As a result, Rodgers continued, “I am not spending any money, I am not opening any plants and I am not hiring anybody, and corporate America is doing the same thing.”

And it’s not just CEOs who are affected by energy taxes:

According to the Heritage Foundation’s Center for Data Analysis, under cap-and-tax legislation, gas prices at the pump would increase 58%. Residential electricity costs would “necessarily skyrocket” by 90%. Total GDP loss by 2035 would be $9.4 trillion. Net job losses (after “green” job creation) would be nearly 1.9 million in 2012 and could approach 2.5 million by 2035. Manufacturing would lose 1.4 million jobs in 2035.

If only Democrats could be affected by the laws that Democrats pass, while Republicans can be affected by the laws that Republicans pass. Let the Democrats live in bankrupt states like California and the Republicans can live in booming states like Texas. There are two different cultures – one that doesn’t understand economics, and one that does.

Obama’s naive trade policy angers Canada, China, France, Mexico, etc.

The economic effects of massive government waste and naive protectionism
The economic effects of massive government waste and naive protectionism

(Source: Wall Street Journal)

The Wall Street Journal explains the high costs of economic ignorance.

Excerpt:

The smell of trade war is suddenly in the air. Mr. Obama slapped a 35% tariff on Chinese tires Friday night, and China responded on the weekend by threatening to retaliate against U.S. chickens and auto parts. That followed French President Nicolas Sarkozy’s demand on Thursday that Europe impose a carbon tariff on imports from countries that don’t follow its cap-and-trade diktats. “We need to impose a carbon tax at [Europe’s] border. I will lead that battle,” he said.

Mr. Sarkozy was following U.S. Energy Secretary Steven Chu, who has endorsed a carbon tax on imports, and the U.S. House of Representatives, which passed a carbon tariff as part of its cap-and-tax bill. This in turn followed the “Buy American” provisions of the stimulus, which has incensed much of Canada; Congress’s bill to ban Mexican trucks from U.S. roads in direct violation of Nafta, prompting Mexico to retaliate against U.S. farm and kitchen goods; and the must-make-cars-in-America provisions of the auto bailouts. Meanwhile, U.S. trade pacts with Colombia, Panama and South Korea languish in Congress.

The article goes on to explain how the Smoot-Hawley tariff helped cause the Great Depression. This is exactly the path that President Teleprompter is treading. He is taking us head-first into the next Great Depression because he knows less about economic policy than my keyboard. He did legal work for ACORN, for God’s sake – have you seen who ACORN hires? I’m sure that woman can read a Teleprompter, too.

What do economists think of Obama’s economic policies?

I noticed this post on Greg Mankiw’s blog, where links to a survey of economists.

Click here to read the results of a new survey of AEA members. This updates previous survey results, summarized in Chapter 2 of my favorite textbook.

Note that 83 percent agree that “the United States should eliminate remaining tariffs and other barriers to trade.” I presume that would apply to tariffs on Chinese tires.

Greg Mankiw is a Harvard University professor of economics.

UPDATE: New Michele Bachmann video!

Wow, is she ever pretty when she’s explaining free trade! Sigh.