Friday, July 31, 2009
More Obamacare News
This video shows a window into the bureaucracy of government run health care. Oh the headaches! See the flow chart...
Democracy At Work
This is what makes our nation great...the ability to voice our opinions. Hopefully the not so silent majority will get the message across in time. Enjoy...
Health Care Destruction Marches On...
Your elected leaders are hard at work ruining the future of our nation. The article below is from Fox News:
WASHINGTON -- A key House panel approved its version of major health care reform package Friday night, setting the full House up for a debate on the legislation after its August recess.
The House Energy and Commerce Committee, which voted Friday, was the last of three panels to approve a health bill. The vote, 31-28, was made possible by a deal brokered earlier this week between Democratic leaders and conservative "Blue Dog" Democrats, though health reform legislation still is being held up in one Senate committee.
The Blue Dogs wanted to dial back a "public option" where the government offers health care for Americans. They also sought protections for small business owners and significant cost reductions.
All but five Democrats on the committee voted for the plan. The other Democrats, Reps. Charlie Melancon of Louisiana, Bart Stupak of Michigan, Rick Boucher of Virginia, Jim Matheson of Utah and John Barrow of Georgia joined all Republicans in opposing the legislation.
House Democrats intend to spend August selling the health care bill to the public. They hope the effort will enable them to call a vote on the measure before the whole House in September.
Republicans, on the other hand, intend to use August to gin up opposition to the plan.
Just before the final vote, both Democrats and Republicans stood to give a standing ovation to Rep. John Dingell, D-Mich., for whom the bill is named. Dingell is the most-senior member of the House, starting his career in the 1950s. Dingell's father preceded him in the House and worked on approving health care reform in the 1940s.
Wednesday, July 22, 2009
The Obama Care Facts
More on Obama Care:
Fox News has a nice little list of facts vs. Obama. The truth is brutal. The benefits of Obama Care wither under scrutiny and the costs balloon.
The AMA originally opposed the President's efforts at health care destruction, but has changed its tune under pressure from the administration. This has resulted in an uproar from some members including some leaving the association.
I am sure there will be more on this later.
Fox News has a nice little list of facts vs. Obama. The truth is brutal. The benefits of Obama Care wither under scrutiny and the costs balloon.
The AMA originally opposed the President's efforts at health care destruction, but has changed its tune under pressure from the administration. This has resulted in an uproar from some members including some leaving the association.
I am sure there will be more on this later.
Monday, July 20, 2009
Political Stimulus
Have you been wondering where all of the $787 billion was being spent? I have wondered who was getting all that money - and now I know...
We were promised that this time if we gave Congress and the President the check book it would be different. Only the necessities they said - we will use this money to help those hurt by this recession. The goal was to stimulate the economy by sending money to the places and people hit the hardest. I don't know what is more sad that fact that we believed him or that I am not surprised by the outcome.
The only thing getting stimulated by the stimulus are the supporters of Obama. States that voted for him, cities that voted for him, states and cities that might vote for him next time. They all got huge piles of money- even if their economies were doing ok. Well that's politics folks- spend 1 year making promises and 4 years breaking them. Fox News has an interesting article on the political stimulus of America.
We were promised that this time if we gave Congress and the President the check book it would be different. Only the necessities they said - we will use this money to help those hurt by this recession. The goal was to stimulate the economy by sending money to the places and people hit the hardest. I don't know what is more sad that fact that we believed him or that I am not surprised by the outcome.
The only thing getting stimulated by the stimulus are the supporters of Obama. States that voted for him, cities that voted for him, states and cities that might vote for him next time. They all got huge piles of money- even if their economies were doing ok. Well that's politics folks- spend 1 year making promises and 4 years breaking them. Fox News has an interesting article on the political stimulus of America.
The Truth About Obama Care
We should all take note of this because if we don't act this will soon be a reality in America.
Enjoy:
Enjoy:
Monday Must Read
7/20/2009:
You just have to listen to this. It is audio of an interview with a patients rights advocate about the details in the health care destruction package working it's way through Congress. Listen Up!
The health care brawl is alive and well in Washington. Finally, truth is coming out about the health care reform ambitions of our President. Finally, the public is catching on to the costs, inefficiencies, and pitfalls of government run health care. You can read about it in this Fox News article.
There is also a nice video of Obama....just a mistake or a little ray of truth - you decide.
You just have to listen to this. It is audio of an interview with a patients rights advocate about the details in the health care destruction package working it's way through Congress. Listen Up!
The health care brawl is alive and well in Washington. Finally, truth is coming out about the health care reform ambitions of our President. Finally, the public is catching on to the costs, inefficiencies, and pitfalls of government run health care. You can read about it in this Fox News article.
There is also a nice video of Obama....just a mistake or a little ray of truth - you decide.
Saturday, July 18, 2009
Commentary on The Second Amendment
This article was sent to me and I think it a very nicely articulated expression of why the right to bear arms is important. Please take a few minutes and read it:
by Chuck Baldwin
July 17, 2009
By now, most Americans are familiar with the horrific murder of a Pensacola, Florida, couple by the name of Byrd and Melanie Billings. They were the parents of 17 children, 13 of whom were adopted--most of whom had disabilities. This case hits home with me, because they lived in my hometown of Pensacola. I did not know them personally, but they were fairly well known around town. Byrd was a well-to-do businessman who owned a used car business and financial loan service.
Byrd and Melanie were shot to death in their own home a week ago Thursday. So far, eight people have been arrested in the case: seven men and one woman. The seven men are each charged with two open counts of murder, and the woman is charged with accessory to murder after the fact. Law enforcement officials said yesterday that at least one more "person of interest" is being sought.
The Billings murder case was broken open by the fact that their home was equipped with a surveillance system, which recorded the vehicle used to transport the murderers to the home and probably much of the criminal activity inside the house, although the sheriff's office has not released the video of what was recorded inside the house. The video of the van led police to the suspects. Our State Attorney, Bill Eddins, says that all of the perpetrators who actively took part in the shootings are in custody. At least five of the men were inside the house when the murders took place; and police said the killers were in and out of the house in four minutes.
In a news conference yesterday, Escambia County Sheriff David Morgan and State Attorney Bill Eddins said they have the murder "weapon or weapons." They also said that the remaining "person of interest" was supposed to disable the surveillance system but did not do so, which is why the system was still operational when the crimes occurred. In addition, Morgan and Eddins said the motive was robbery, because a small safe was taken from the house, but that other motives could also apply to the killings. Federal agencies are also assisting with the Billings murders, including the FBI, BATFE, and DEA.
To my way of thinking, this case smacks of much more than a robbery gone badly. There were at least eight, and maybe nine, people involved. Maybe more. The invasion and killings were perpetrated in less than four minutes, by multiple assailants, and with "military precision." The home invasion took place at approximately 7:30 p.m. local time. And at the time of the shooting, nine of the Billings children were in the home.
I believe murder, not robbery, was the motive. Extraordinary planning and the number of personnel involved indicate to me that the Billings were executed, and that robbery was an afterthought--or was even intended to be a ruse to mislead law enforcement. The real reason behind the killings may never be known, of course.
Regardless of the "why" and "how" of the killings, one thing is painfully obvious: a violent attack took place against a man and his wife inside their own home. And while the circumstances of the Billings case may be sensational, the simple fact that a couple was murdered inside their own home has become rather commonplace throughout the United States. Nationwide, home invasions are skyrocketing.
Home is the one place where most of us feel safe and protected. Even those who have a keen sense of self-defense feel free to let their guard down at home. And, sadly, most people do not possess a keen sense of self-defense. Most people have the deluded opinion that law enforcement will protect them. But even law enforcement professionals will tell you it is not their job to protect citizens; it is their job to apprehend and bring those who have committed crimes to justice. In other words, after you are dead, the cops will try to catch the guys who killed you.
It is time that people wake up to the fact that the responsibility of self-defense rests with each individual citizen. We are all vulnerable to attack--even in our homes! For this reason, our federal Constitution and most (if not all) State constitutions recognize the Natural Law right of people to keep and bear arms.
Over the past 40-plus years, however, miscreants in Washington, D.C., and in our State capitols have been whittling away at the right of the people to keep and bear arms. Lawful gun dealers are being harangued and harassed out of existence by the BATFE. Law enforcement agencies and State prosecutors often side with criminals when they are shot in self-defense by intended victims (especially in the Northeast). The media often characterizes lawful gun owners as "gun nuts" or "militia members" to try to create the impression that they are "dangerous" or "extremist." Public education--especially higher education--is often a willing participant in helping to demonize gun owners. Even Hollywood often uses its influence to sway public opinion against gun owners. All this, coupled with a natural lazy tendency of urban living, equates to a careless and defenseless society: something both would-be tyrants in government and street criminals love.
Fortunately, America's founders were wiser than most of today's generation. They understood the relationship between the citizen's right (and determination) to keep and bear arms and his or her safety and security.
For example, Thomas Jefferson said, "No free man shall ever be debarred the use of arms." He also said, "Laws that forbid the carrying of arms . . . disarm only those who are neither inclined nor determined to commit crimes . . . Such laws make things worse for the assaulted and better for the assailants; they serve rather to encourage than to prevent homicides, for an unarmed man may be attacked with greater confidence than an armed man."
Likewise, Thomas Paine said, "[A]rms, like laws, discourage and keep the invader and plunderer in awe, and preserve order in the world as well as property . . . Horrid mischief would ensue were one-half the world deprived of the use of them; for while avarice and ambition have a place in the heart of man, the weak will become prey to the strong. The history of every age and nation establishes these truths, and facts need but little arguments when they prove themselves."
The Billings double murder is the latest example of just how vulnerable we all are to the violent tendencies of evil people. For this reason (and more), every American should (1) resist any and all attempts by government to curtail or restrict our legal right to keep and bear arms, and (2) purchase, practice with, and always keep our own personal firearms handy. Furthermore, we should always live in a heightened "state of alert" (even in our own homes), because both our lives and our liberty may depend on it.
*If you appreciate this column and want to help me distribute these editorial opinions to an ever-growing audience, donations may now be made by credit card, check, or Money Order. Use this link:
http://www.chuckbaldwinlive.com/donate.php
© Chuck Baldwin
Sunday, July 12, 2009
The Government's Debt Problem
Our national debt is rising at a spectacular rate. Every day brings new record highs - over 11.5 trillion dollars and still climbing. Americans are starting to worry about the national debt and with good cause. The national debt is now something close to 80% of GDP and there is no stop in site to the spending from Washington. If we don't do something the debt could become the next economics crisis!
Obama made promises to cut the deficit in half by the end of his first term, but with his spending record that is looking more and more unlikely. The table below is an excerpt from a Fox News article:
There are four primary reasons that a continually growing national debt of the size we currently have is a danger to our economy. First, when the government needs to sell new bonds to cover spending it has to get someone to lend those dollars. This means the government competes with other borrowers to attract investors' money. The government has many advantages here, because it has taxing power; the default risk and therefore interest rates on government debt are relatively low, but as the government's liabilities grow that begins to change. Investors will and currently are beginning to take note of the high debt to GDP ratio of the U.S. and they then demand higher interest to compensate them for the greater risk of lending more money. The higher interest rates paid by the government is a problem in itself (more on this later), but it also has a ripple effect. The interest rates on U.S. government bonds are used as "risk-free" benchmarks for a lot of other short- to long-term market rates. This means that as the government borrows more it puts upward pressure on interest rates and begins to slow economic growth and distort investment and saving even more. Over time this will result in reduced prosperity in America.
Second, a large percentage of U.S. government debt is held by other nations' governments. This has historically been true ever since the second world war because the U.S. was the major economic power and a very stable place to stash your money. It is also expected that other nations would hold dollars because of the dollar's position as the primary currency of international trade and would like to store those dollars in an interest bearing instrument like a bond. The only real problem of foreign ownership of U.S. federal debt comes from the sheer size of our liabilities and the foreign holdings. The U.S. economy is very sensitive to interest rates and the strength of the dollar. If a large group of foreign debt holders decided to dump their holdings all at once the result would be a sharply weaker dollar and sharply higher interest rates on U.S. bonds as treasury prices sank. Those rates would bleed over into broader market rates and choke the economy over time if the demand for treasuries continued to be weak. This limits our ability to protect our interests internationally because certain nations have a massive store of U.S. debt, like China. While such an action is unlikely and would have consequences for the other party it is possible and it ties our hands. This will become an even bigger issue as we continue to go hat in hand to the world to fund our government's operations. If suddenly no one would lend to the U.S. government all of our options are very bad. They range from printing money and spiking inflation to shutting down government services.
Third, as our debt grows it requires an ever larger proportion of our annual budget to just pay the interest on the debt. Interest on the national debt is now the fourth largest spending category after Medicare-Medicaid, Social Security, and defense. By 2050 many economists predict that Medicare, Social Security, and the interest on the debt will take up the whole budget! Obviously, the interest burden diverts resources from other programs and itself necessitates more borrowing in a vicious and self-reinforcing cycle. The biggest detriment to the U.S. economy comes from the large percentage of interest that is paid to foreign debt holders. That represents money collected by the government and shipped to other economies. It is a net wealth loss for the U.S. At least with domestic holders of federal debt the interest payments re-enter our economy as income to the bond holders. Once the debt reaches the point where we have to borrow just to pay the interest on the debt - then the U.S. government is nothing more than a giant ponzi scheme.
Fourth, it is a simple fact of economics and mathematics that no entity, not even the U.S. government, can borrow indefinitely and never have to pay it all back. At some point our economy will change or the global situation will change and the U.S. will be forced to balance its budget and pay down the debt. The more we borrow today the bigger the hole we dig for our children, grandchildren, and great-grandchildren. We are quite literally stealing prosperity from future generations. Future Americans will face higher taxes, higher interest rates, slowing economic growth, and a generally reduced standard of living when the time comes that we have to pay the piper. This reason implores us to fix our spending habits from a purely moral perspective.
Our national debt and continued over spending is a complex problem and in order to change it we will have to look at ourselves long and hard. We as individuals and families must decide to live within our means, be realistic about what the government and and should provide, and demand accountability. Only then will we ever get this spending under control.
Obama made promises to cut the deficit in half by the end of his first term, but with his spending record that is looking more and more unlikely. The table below is an excerpt from a Fox News article:
- $38 billion for the State Children's Health Insurance Program Reauthorization between 2010 and 2019
- $787 billion fiscal stimulus bill
- $75 billion homeowner stability program
- $125 billion "place holder" of additional financial stabilization funds (if needed)
- $22 billion for Cap and Trade program in 2020
There are four primary reasons that a continually growing national debt of the size we currently have is a danger to our economy. First, when the government needs to sell new bonds to cover spending it has to get someone to lend those dollars. This means the government competes with other borrowers to attract investors' money. The government has many advantages here, because it has taxing power; the default risk and therefore interest rates on government debt are relatively low, but as the government's liabilities grow that begins to change. Investors will and currently are beginning to take note of the high debt to GDP ratio of the U.S. and they then demand higher interest to compensate them for the greater risk of lending more money. The higher interest rates paid by the government is a problem in itself (more on this later), but it also has a ripple effect. The interest rates on U.S. government bonds are used as "risk-free" benchmarks for a lot of other short- to long-term market rates. This means that as the government borrows more it puts upward pressure on interest rates and begins to slow economic growth and distort investment and saving even more. Over time this will result in reduced prosperity in America.
Second, a large percentage of U.S. government debt is held by other nations' governments. This has historically been true ever since the second world war because the U.S. was the major economic power and a very stable place to stash your money. It is also expected that other nations would hold dollars because of the dollar's position as the primary currency of international trade and would like to store those dollars in an interest bearing instrument like a bond. The only real problem of foreign ownership of U.S. federal debt comes from the sheer size of our liabilities and the foreign holdings. The U.S. economy is very sensitive to interest rates and the strength of the dollar. If a large group of foreign debt holders decided to dump their holdings all at once the result would be a sharply weaker dollar and sharply higher interest rates on U.S. bonds as treasury prices sank. Those rates would bleed over into broader market rates and choke the economy over time if the demand for treasuries continued to be weak. This limits our ability to protect our interests internationally because certain nations have a massive store of U.S. debt, like China. While such an action is unlikely and would have consequences for the other party it is possible and it ties our hands. This will become an even bigger issue as we continue to go hat in hand to the world to fund our government's operations. If suddenly no one would lend to the U.S. government all of our options are very bad. They range from printing money and spiking inflation to shutting down government services.
Third, as our debt grows it requires an ever larger proportion of our annual budget to just pay the interest on the debt. Interest on the national debt is now the fourth largest spending category after Medicare-Medicaid, Social Security, and defense. By 2050 many economists predict that Medicare, Social Security, and the interest on the debt will take up the whole budget! Obviously, the interest burden diverts resources from other programs and itself necessitates more borrowing in a vicious and self-reinforcing cycle. The biggest detriment to the U.S. economy comes from the large percentage of interest that is paid to foreign debt holders. That represents money collected by the government and shipped to other economies. It is a net wealth loss for the U.S. At least with domestic holders of federal debt the interest payments re-enter our economy as income to the bond holders. Once the debt reaches the point where we have to borrow just to pay the interest on the debt - then the U.S. government is nothing more than a giant ponzi scheme.
Fourth, it is a simple fact of economics and mathematics that no entity, not even the U.S. government, can borrow indefinitely and never have to pay it all back. At some point our economy will change or the global situation will change and the U.S. will be forced to balance its budget and pay down the debt. The more we borrow today the bigger the hole we dig for our children, grandchildren, and great-grandchildren. We are quite literally stealing prosperity from future generations. Future Americans will face higher taxes, higher interest rates, slowing economic growth, and a generally reduced standard of living when the time comes that we have to pay the piper. This reason implores us to fix our spending habits from a purely moral perspective.
Our national debt and continued over spending is a complex problem and in order to change it we will have to look at ourselves long and hard. We as individuals and families must decide to live within our means, be realistic about what the government and and should provide, and demand accountability. Only then will we ever get this spending under control.
Monday Must Read
7/13/2009
I don't usually find CNN all that informative, but I guess everybody gets one right now and again. Check out "Reality check: Canada's government health care system." Obama wants to model his system in a similar fashion and we will have to pick up the tab so make sure read anything you can find about this topic.
The Lonely Conservative has a interesting post about Obama and Russia. Check it out...
The climate change bill has been delayed! Check it out our senators have a least half a brain...
Nearing retirement or just concerned about it? Business Week ran an interesting series on it entitled, "Rethinking Retirement." The piece is interesting though I am not sure I buy into all the things suggested.
I don't usually find CNN all that informative, but I guess everybody gets one right now and again. Check out "Reality check: Canada's government health care system." Obama wants to model his system in a similar fashion and we will have to pick up the tab so make sure read anything you can find about this topic.
The Lonely Conservative has a interesting post about Obama and Russia. Check it out...
The climate change bill has been delayed! Check it out our senators have a least half a brain...
Nearing retirement or just concerned about it? Business Week ran an interesting series on it entitled, "Rethinking Retirement." The piece is interesting though I am not sure I buy into all the things suggested.
Sunday, July 5, 2009
New Regulation Comrade
It seems like the announcements of new regulation come out of Washington about as fast as the national debt rises, and that's a tough pace to match. There are still lots of unknowns about how the U.S. will look after this recession ends, but one thing is clear - the government will be taking a much larger role in virtually everything. Given our government's track record I don't find this to be encouraging. Let's take a brief look at what is going out there in the political jungle.
We have already seen that the Obama administration is willing to take over companies in the name of the greater good. The administration has been working to overhaul our financial regulatory system. Apparently among the proposals is an expanded ability to seize companies. This would give the government the explicit authority to seize companies critical to the economy. This sort of a regulation could conceivably give the government the ability to seize any company depending on the definition of "critical." If they seize enough of them pretty soon we are a defacto centrally planned economy.
Along with the power to seize companies the Obama administration is talking about dramatically changing the regulatory system that exists in America today. The proposals include adding regulation to hedge funds and the credit default swaps market. Tighter scrutiny over the derivatives market and over short-selling. Basically all the usual scapegoats for a bear market. If President Obama accomplishes what he hopes to, the government will be inserted into every single aspect of the financial system right down to compensation decisions. What we are going to end up with is a government that makes all the decisions in our banks, insurance companies, and mortgage lenders. We have seen where this will lead - just look at Fannie Mae or Freddie Mac. The future of America as a free nation is at stake - the outcome doesn't look promising.
We have already seen that the Obama administration is willing to take over companies in the name of the greater good. The administration has been working to overhaul our financial regulatory system. Apparently among the proposals is an expanded ability to seize companies. This would give the government the explicit authority to seize companies critical to the economy. This sort of a regulation could conceivably give the government the ability to seize any company depending on the definition of "critical." If they seize enough of them pretty soon we are a defacto centrally planned economy.
Along with the power to seize companies the Obama administration is talking about dramatically changing the regulatory system that exists in America today. The proposals include adding regulation to hedge funds and the credit default swaps market. Tighter scrutiny over the derivatives market and over short-selling. Basically all the usual scapegoats for a bear market. If President Obama accomplishes what he hopes to, the government will be inserted into every single aspect of the financial system right down to compensation decisions. What we are going to end up with is a government that makes all the decisions in our banks, insurance companies, and mortgage lenders. We have seen where this will lead - just look at Fannie Mae or Freddie Mac. The future of America as a free nation is at stake - the outcome doesn't look promising.
Monday Must Read
7/6/2009:
I mentioned the book Meltdown by Thomas Woods in last week's Monday Must Read. I am going to mention it this week again because it is just that good! The author explains in plain English how we ended up in this mess, how the Fed is responsible, and what should be done. It is a great book for those that want to understand how the Fed messes with our economy and why it is bad, but prefer not to read in depth economic texts.
"The Welch Way," in last week's Business Week really hits on why all the sudden change being pushed by Obama and Congress is too much too fast.
I mentioned the book Meltdown by Thomas Woods in last week's Monday Must Read. I am going to mention it this week again because it is just that good! The author explains in plain English how we ended up in this mess, how the Fed is responsible, and what should be done. It is a great book for those that want to understand how the Fed messes with our economy and why it is bad, but prefer not to read in depth economic texts.
"The Welch Way," in last week's Business Week really hits on why all the sudden change being pushed by Obama and Congress is too much too fast.
Saturday, July 4, 2009
The Welch Insight
There is an interesting piece by Jack and Suzy Welch in Business Week. They attempt to answer the question - Is Obama trying to do too much? The short answer is yes. They do a great job of pointing out that the problem with Obama's recent efforts at climate change, health care, and regulation is that it is all too fast and too easy. Having control of both the White House and Congress is a recipe for bad policy because big problems/issues get addressed but there is little debate. It is admirable that the President is willing to tackle these issues, but in the end if we do not leave time for debate and consideration the result will be mess that a future administration has to clean up. You should definitely read this article.
Friday, July 3, 2009
June's Tab+Tip
June's Tab:
-Unemployment was 9.5% for June up from 9.4% in May and 8.5% in April. That is a loss of 467,000 jobs in June. If we use most recent median household income number of approximately $50,000 that means we lost $23,350,000,000 in household annual incomes or 23.35 billion dollars, which equates to $1.9 billion in lost income in per month starting in June!
-Obama and Congress are talking up national health care to the tune of $1.6 trillion.
-The House passed a climate change bill that is estimated to cost households $175 a year the first year, which is about $3 billion a year for the whole nation.
-Meanwhile gas has risen back above $2.50 a gallon in many parts of the country. That's billions more in costs that house hold must bear.
So, let's sum up June's sad toll on a monthly basis:
-1.9 billion in lost incomes
-13.33 billion for health care per month (1.6 trillion /12)
-250 million for a month of climate change (3 billion /12)
= -15.48 Billion and here's the tip that's before the gasoline and after you pay taxes!
-Unemployment was 9.5% for June up from 9.4% in May and 8.5% in April. That is a loss of 467,000 jobs in June. If we use most recent median household income number of approximately $50,000 that means we lost $23,350,000,000 in household annual incomes or 23.35 billion dollars, which equates to $1.9 billion in lost income in per month starting in June!
-Obama and Congress are talking up national health care to the tune of $1.6 trillion.
-The House passed a climate change bill that is estimated to cost households $175 a year the first year, which is about $3 billion a year for the whole nation.
-Meanwhile gas has risen back above $2.50 a gallon in many parts of the country. That's billions more in costs that house hold must bear.
So, let's sum up June's sad toll on a monthly basis:
-1.9 billion in lost incomes
-13.33 billion for health care per month (1.6 trillion /12)
-250 million for a month of climate change (3 billion /12)
= -15.48 Billion and here's the tip that's before the gasoline and after you pay taxes!
Wednesday, July 1, 2009
Climate Change and What It Will Cost You
It’s official, the House has just passed the largest tax increase in American history! Late last week the House passed a landmark monstrosity of a bill to create a cap and trade system for carbon emissions in the U.S. The bill was passed by a very narrow 219-212 according to Fox News. The bill calls for substantial reductions in CO2 emissions and will impact virtually every sector and industry in the nation. It will regulate the emissions of power plants, steel plants, refineries, even farms and livestock production. The bill will require companies to have permits to emit greenhouse gases like CO2. The number of permits will be set by the government and initially 85% will be given away to companies and 15% will be auctioned off (more on this later). The companies that hold these permits will get a right to emit a certain volume of greenhouse gas, if they do not use it all they can sell those rights to other companies that need them. Every year the government will reduce the volume gradually until we hit 80% below 2005 levels of emission by 2050.
The kicker here is that because the initial amount is immediately below current emissions companies will either have to buy permits to emit or invest in clean technology. Both of which will add cost to the services they perform, cost they will pass on to their customers. Even if a company commits to clean technology they will have to buy permits for some time since these projects typically can take years to complete. This will mean that consumers will face higher prices for electricity, natural gas, propane, gasoline, and even some food products. According to the Fox News article the CBO estimated that this will cost consumers about $175 a year initially in added costs for various services. Over time these costs will filter through and if the decreases in the permitted emission volume outpace the advance of clean technology then these costs will increase dramatically. The Wall Street Journal also has an interesting article about this bill.
This bill will insert government regulation into virtually every aspect of our economy. The bill’s impact won’t even be evenly distributed across the nation. Coastal states and states with a lot of hydro-electric or nuclear power sources will not see as large of an impact. Also, states that specialize in knowledge or white-collar industries (think computers and medicine) will not be hit as hard – these tend to be coastal states too. In the Mid-West, South-West, Appalachian States, and Texas where the industries are concentrated in agriculture, heavy industry, manufacture, and oil and gas and where electricity is primarily from coal or natural gas the impact will be much worse. This tax will fall disproportionately hard on the states that by and large are the hardest hit by the changing landscape of our economy. Not to mention the fact that this will put our manufacturers at a competitive disadvantage to those in countries without such regulation, like China, India, Vietnam, and Korea.
This will have profound impact on how long it takes us to get out of this recession and also on how fast our economy grows afterward. The result will be a slowing growing economy, a poorer citizenry, and sharply higher energy costs. Luckily it is not certain that it will pass the Senate, so call your Senator and let him/her know what you think. If you want to read more click on the links below:
-Lonely Conservative “Climate Bill Defies Economics.”
-Fox News “House GOP Warns…”
Subscribe to:
Posts (Atom)
Posts
