There is nothing wrong with a collective effort to reduce harmful pollutants into our environment, but is the proposed cap-and-trade legislation the right way to go? The WSJ offers a warning:
The hit to GDP is the real threat in this bill. The whole point of cap and trade is to hike the price of electricity and gas so that Americans will use less. These higher prices will show up not just in electricity bills or at the gas station but in every manufactured good, from food to cars. Consumers will cut back on spending, which in turn will cut back on production, which results in fewer jobs created or higher unemployment. Some companies will instead move their operations overseas, with the same result.
When the Heritage Foundation did its analysis of Waxman-Markey, it broadly compared the economy with and without the carbon tax. Under this more comprehensive scenario, it found Waxman-Markey would cost the economy $161 billion in 2020, which is $1,870 for a family of four. As the bill’s restrictions kick in, that number rises to $6,800 for a family of four by 2035.
Translation: Consumers will foot the extra costs companies incur under cap-and-trade, and it will have a negative impact on the overall economy.
Again, this seems to be another anti-capitalist measure cooked up by liberals. There are many legislation and regulations limiting pollutants and severe fines for violations, why must we force a cap-and-trade system?
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