Cap & Trade likely to Impoverish and Socialize America

Duncan Currie, NRO Online - ON June 6, 2008, the U.S. Senate rejected a motion to end debate on the Lieberman-Warner Climate Security Act, which would have established a "cap and trade" (CAT) system to regulate greenhouse-gas emissions and set ambitious targets for emissions cuts. ......Obama is seeking to enact a CAT program under which the federal government would impose a hard cap on greenhouse-gas emissions and then auction off 100 percent of pollution allowances. ......The CAT system would begin in fiscal year 2012. Its goal, according to Obama's budget blueprint, would be "to reduce greenhouse gas emissions approximately 14 percent below 2005 levels by 2020, and approximately 83 percent below 2005 levels by 2050."

......As the Congressional Budget Office (CBO) has noted, "Regardless of how the allowances were distributed, most of the cost of meeting a cap on CO2 emissions would be borne by consumers, who would face persistently higher prices for products such as electricity and gasoline. Those price increases would be regressive in that poorer households would bear a larger burden relative to their income than wealthier households would."
More specifically, the CBO has calculated that "the price rises resulting from a 15 percent cut in CO2 emissions would cost the average household in the lowest one-fifth (quintile) of the income distribution about 3.3 percent of its average income," while it would cost the average household in the top income quintile only "1.7 percent of its average income." The corresponding figures for the other three income quintiles (from the second-lowest to the second-highest) would be 2.9 percent, 2.8 percent, and 2.7 percent.

In 2008, the American Council for Capital Formation and the National Association of Manufacturers commissioned a study of the Lieberman-Warner bill, performed by Science Applications International Corporation using the EIA's National Energy Modeling System. It estimated that the costs of compliance with Lieberman-Warner would increase electricity prices for residential consumers by "28 percent to 33 percent in 2020, and 101 percent to 129 percent in 2030." It also concluded that the measure would reduce GDP by "$151 billion to $210 billion in 2020 and $631 billion to $669 billion in 2030 (in 2007 dollars)" and would result in job losses of "1.2 million to 1.8 million in 2020 and 3 million to 4 million by 2030." On the family level, the study found that Lieberman- Warner would reduce average household income by between $739 and $2,927 in 2020 and "between $4,022 and $6,752 in 2030 (in 2007 dollars)." Sourced from The Free Library.
This where they get to socialize America, you see Hussein, like our very own anti-capitalist Kevin Rudd knows that the poor will be hit when they bring in their fancy carbon emissions crap to punish those that produce. They know the poor will reject their global warming nonsense when they realize that this is isn't just feel-good greenie nonsense and it's actually going to hurt them in the hip pocket.

So Obama and Rudd will ride in to the rescue, look folks the planet is burning, the seas are rising, just believe us, trust us to take care of this, we know you'll pay more for petrol and lights, but we'll take money from those rich fat-cats and give it to you by way of welfare payments and such to offset your extra expenses to save the planet. And the masses will be happy that someone will finally sock it to the fat-cats [but not the true fat-cats who always weasel out of paying the high taxes they call on others to pay] and that the masses won't have to pay much to save the supposedly burning planet.

By the time the money from the 'fat-cats' dries up, jobs become scarce and the nation is in the toilet, it'll be too late or very difficult to wean the masses off other people's money as their choice will be voting for the party that gives them more of others' money or having to reject the 'free' money and working their way out of the rut themselves.

Duncan Currie seems to imply that there is a good chance this Cap & Trade scheme won't actually come to pass, pray that he is right.

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