Tag Archives: Electricity

Are Obama’s policies weakening America’s security, liberty and prosperity?

In this American Spectator piece entitled “Obama the Destroyer“, Quin Hillyer recounts the many deeds that Obama performed in order to weaken America.

Hilyer writes:

If somebody were deliberately trying to undermine the very fabric of these United States, he would first vow not just to change its policies but to completely “change America,” and then would do just about everything Barack Obama already has begun to do as president.

He then lists some of the specific areas that Obama has weakened:

  • contract law (which is part of the foundation of capitalism and free enterprise)
  • strict interpretation of the Constitution
  • counter-terrorism (released interrogation techniques)
  • responsible spending and size of government
  • energy production
  • missile defense
  • military preparedness and research
  • border security
  • transparency and free/open debate on legislation
  • freedom of choice in health care
  • the integrity of the voting/census system
  • diplomacy and foreign policy

I could name at least a half-dozen more areas not on that list, such as the Western Experience’s post about Obama’s decision to weaken our nuclear capabilities. In fact, Jason has a whole article on the Obama’s naive, weak foreign policy.

But foreign policy is one thing, what about the cost of the trillions in spending? Writing in the Weekly Standard, Irwin M. Stelzer explains that there are only two ways out of the massive deficits that Obama has run up: Higher taxes, which destroys economic growth and ships jobs overseas, and hyperinflation, which impoverishes the poorest among us by making them pay more for everything.

He lists all the mistakes that the ACORN lawyer has made, and concludes:

We are also certain to see the portion of our pay that we actually get to take home decline significantly. The debt that Obama is running up will have to be repaid. Already, there are grumblings in the market about the future of the dollar, with the Chinese not the only one of our creditors worrying that we will inflate our way out of our obligations. Run the presses, make dollars cheaper, and use the debased currency to repay debts.

…But inflation is not the only possibility. Instead, politicians, remembering the fate of Jimmy Carter when he allowed inflation to climb towards 20 percent, will try to restore fiscal sanity by raising taxes. Harvard economist Martin Feldstein, who supported the president’s stimulus package, puts the needed tax increase at $1.1 trillion over the next decade; the International Monetary Fund puts the figure at $1.9 trillion, a sum the magnitude of which is better understood when written as $1,900,000,000,000.

And don’t forget the looming problem of entitlements. You remember. Social Security and Medicare? Costs ballooning out of control? Matthew Continetti writes about it in the Weekly Standard:

The trustees conclude that a combination of lavish benefits, an aging population, and a moribund economy has brought the United States’s social insurance system close to bankruptcy. Medicare is already running a deficit, and the trustees say that it will be totally out of money by 2017. Social Security will be in the red as soon as 2016. That’s a problem not only for Social Security. It’s a problem for the federal budget.

…Meanwhile, bizarrely and perversely, Obama and the Democrats on Capitol Hill say that the only way to fix America’s spending problem–we are not making this up–is to spend more money. More on energy. Health care. Education. The three pillars of the president’s “new foundation.” Don’t worry about the cost, Obama says. The rich guy at the other table will pick up the bill.

What sort of person would spend trillions of dollars in a recession with a looming entitlement crisis? Oh, I know. An unqualified spendthrift who can’t even keep his own financial house in order.

Gateway Pundit reminds us that the Democrats understand that their cap and trade bill with hurt the poorest people the most. And they don’t care! Most of them are probably like Al Gore, who owns assets that will benefit from the unnecessary government regulations.

Gateway Pundit writes at the American Issues Project:

The potential cost of the democrat’s cap and trade policy is enormous. It will likely cost $700 to $1,400 dollars per family per year. The Department of Energy estimated that a similar bill, S. 2191, the Warner-Lieberman cap-and-trade proposal, will increase the cost of coal for power generation by between 161 percent and 413 percent. Human Events reported that the DOE estimated GDP losses (see chart) over the 21-year period they forecast, at between $444 billion and $1.308 trillion. There are estimates that the bill could increase unemployment by 2.7 percent or about 4 million jobs.

White House Budget Director Peter Orszag was on “This Week” with George Stephanopoulos in March. During his interview Orszag admitted that Obama’s proposed cap and trade energy legislation will increase energy costs for everyone. The Heritage Foundation reported that cumulative GDP losses for 2010 to 2029 approach $7 trillion. Single-year losses exceed $600 billion in 2029, more than $5,000 per household. Job losses are expected to exceed 800,000 in some years, and exceed at least 500,000 from 2015 through 2026. In Missouri and the Midwest where energy is “cheap” the democrat’s legislation would cause electricity rates to double. Even the far left Huffington Post admits that the approach taken by the Waxman-Markey bill does not alleviate the problem whereby household consumers will pay higher energy costs.

The article continues here.

Remember when Obama said this in 2008?

“Under my plan of a cap and trade system electricity rates would necessarily skyrocket. Businesses would have to retrofit their operations. That will cost money. They will pass that cost onto consumers.”

What? You voted for Obama and the MSM didn’t tell you that he said that? I’m shocked.

Who has the better economy? Canada or the USA?

Hans Bader at the Competitive Enterprise Institute reports:

1.2 million Americans have lost their jobs since the $800 billion stimulus package was signed into law.

The stimulus package has directly destroyed tens of thousands of jobs. A provision in the stimulus package that blocked 97 Mexican truckers from U.S. roads “caused Mexico to retaliate with tariffs on 90 goods affecting $2.4 billion in U.S. trade,” destroying 40,000 American jobs.

It also ignited a trade war with Canada. In response to vague “buy American” provisions in the stimulus package, “A number of Ontario towns, with a collective population of nearly 500,000, retaliated with measures effectively barring U.S. companies from their municipal contracts — the first shot in a larger campaign that could shut U.S. companies out of billions of dollars worth of Canadian projects.”

Yet, Obama had the audacity to claim that only passing the stimulus package would save us from “irreversible decline” and economic ““disaster”.

Obama’s policies echo those of Herbert Hoover, who helped spawn the Great Depression through his protectionism and tax increases.

Remember how Democrats used to complain about Bush and his “tax cuts for the rich”? Yeah, it’s strange how only people who pay taxes (59% of the public) can actually get tax cuts, isn’t it. But Obama has an even better idea: “tax hikes for the poor”.

The Washington Post reports on Obama’s new car tax: (H/T Heritage Foundation, Michelle Malkin, Stop the ACLU, Gateway Pundit)

A senior administration official said the new standards would raise the cost of an average car by $1,300, $600 of which could be attributed to the rules being announced today.

This is not to mention the electricity tax (cap and trade), the cigarette tax, taxing employee health care plans, and the rising cost of living caused by protectionism.

On the other hand, let’s take a look at Canada in relation to the United States, courtesy of the Cato Institute. (H/T Heritage Foundation)

The Cato Institute writes:

Spending: Spending by all levels of the Canadian government peaked at 53 percent of the country’s GDP in the early 1990s, then plunged to 40 percent in 2008. U.S. government spending has risen, reaching 39 percent of GDP in 2008. And with the stimulus package, that number is likely to jump even higher.

Government spending as % of GDP
Government spending as % of GDP

Debt: The Canadian government cut its debt from 71 percent of GDP in 1995 to 32 percent in 2008. Under President Obama’s budget plan, U.S. federal public debt will jump from 41 percent of GDP in 2008 to more than 60 percent next year.

Federal debt as % of GDP
Federal debt as % of GDP

Deficits: Canada has balanced its budget every year since 1998 — not by raising taxes, but by cutting spending. The United States balanced its budget for four years in the late 1990s, but now deficits are so large that it’s difficult to imagine that ever happening again.

Surplus / Deficit as % of GDP
Surplus / Deficit as % of GDP

Corporate Taxes: Canada has cut the corporate tax rate from 28 percent to just 15 percent, and most provinces have trimmed corporate taxes as well. The U.S. federalstate rate stands at about 40 percent, and the Obama administration is planning to increase corporate taxes.

Corporate tax rates
Corporate tax rates

It’s important to note that the Liberal party in Canada is socially progressive, but moderate on fiscal issues. Of course, now that the Conservatives have been running things, it’s gotten even better. It would be great if they could win a majority. The biggest problem in Canada right now is the fascist Human Rights Commissions, but there are candidates from the Conservative Party who intend to abolish the HRCs in BC and Ontario.

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.