From US News & World Report:
U.S. Reps. Henry Waxman of California and Ed Markey of Massachusetts, two of the leading Democratic co-sponsors of H.R. 2454—the American Clean Energy and Security Act of 2009, better known as the cap-and-trade bill—asked the United States Energy Information Administration to analyze their bill’s impact on energy prices and the U.S. economy.
According to a draft of the report released Tuesday night that has already found its way into the media and is circulating through Washington, Waxman and Markey may now wish they hadn’t.
You can say that again. The report is said to show that for all years out to 2030, which is far as any of the models go, the cap-and-trade legislation championed by the Obama administration and Democrats in Congress will increase energy prices. Not increase in the short term and then come down – increase all the way out. That means all energy costs for all Americans – whether they fall into that evil higher-than-
$280K $250K $200K income range or not – will be required to pay more for their energy needs and the requirement is generated solely by this legislation, not by the market. Legislation that requires you to pay more, especially when the payment is going to wind up in government coffers, is a tax regardless of what you call it. That tax will apply to every American and that includes the middle and poorer classes who can ill afford such a hike.
And it gets worse as it goes along, not better:
Allowing that the “allocation of free allowances to regulated electricity and natural gas distribution companies” will lessen the impact of the legislation on energy prices in the initial phase, through 2025, the EIA draft report says that the “average impacts on electricity prices in 2030 are projected to be substantially greater, reflecting both higher allowance prices and the phase-out of the free allocation of allowances to distributors between 2025 and 2030.”
In plain English, that means the price of energy will go up a lot after 2025, solely because of what the cap-and-trade bill requires.
If you’re paying more for gasoline in your car, electricity in your home, and gas in your furnace and water heater then you’re not paying for other things which means demand for goods and services will fall. That pushes the GDP down and in case you didn’t read my last post, it’s already down. This will do little more than push it further. That’s just what we need in an economy already reeling.
All of the talk to the contrary, the real point of all of this is to reduce the greenhouse gas emissions from the US, not by improved technology but by cutting our economic activity. That this will reduce your standard of living and that of your descendants is of no concern to the proponents of this bill.
It’s a bad idea and now even government studies prove it.