The Reality of Cap and Trade, from Congressional Watch Today.
I have written in the past about the harsh realities of the Cap and Trade Bill and its impact as written. Today, the Congressional Watch put out its estimates of the impact of such legislation on the American economy in the near term.
Their first estimate is that the GDP would be reduced by $2 Trillion minimum every year beginning with its implementation.
The price of every vehicle manufactured to the new emissions standard would be upped by $1300 per vehicle.
Approximately 1.1 Million jobs would be lost, before application of economic magnification to a multiple of these losses.
The price of Gasoline would jump by 76%. The price of electricity would jump by 95%.
Overall, every American family would be paying over $3100 a year for these new programs best case, a staggering number for the average family, a hit they can’t absorb.
Tax revenues are crashing all over the country as jobs are lost, and opportunities are de-materialized.
California’s tax base loss is putting it into crisis as we speak. It is one of a vast majority of States and Municipalities that face similar losses.
We are seeing a fantasy focus on job creation, one that has no connection to reality. We have to hope that our legislative processes moderate the extreme elements out of this. If this program isn’t done gradually, this economy will implode, period, no hedge.
I am hard pressed to find any element of our economy not in crisis, and as the Financials improve, many looking for simple solutions think this will revive our economy by itself, only to run into taxation policies from Sweden and the old Soviet Union.
This is such simple economics, I am hard pressed to imagine that the American people can be taken in by this logic, but anyone making that systematic bet for the last hundred years would have been systematically wrong.
Our leaders want us to believe it is different this time. Is it ever, or has it ever been?
I am reminded of an old engineering rag: “If it ain’t broke, don’t fix it.” Capitalism isn’t broken, our political system is. The “Change We Need” is to change our political process. I don’t want to hear from our leaders after an election that they campaigned on policies they had no rationale or factual support for. No one wants to hear that, except the clown class. I am reminded of the old pun about clowns: Two cannibals were eating a clown, when one said to the other “Does he taste bad to you too?” So what will each of us choose to be, the cannibals or the clowns?