Tuesday, July 14, 2009

Jobs and the Climate Change Bill

Proponents of the "cap and trade" legislation continue to argue that this legislation "creates jobs." Their argument is the following: by effectively taxing coal, the price of energy created by coal (and other carbon emitting sources of energy) will increase. This price increase will lead companies to substitute other energy sources -- green energy sources -- for the now more expensive coal or other carbon-emitting sources of energy.

The argument that coal and other other carbon emitting sources of energy will become more expensive is correct. No doubt about it. That will clearly reduce jobs in industries that produces those sources of energy. That will just as clearly reduce the jobs in industries that will now face a higher cost of sources of energy -- principally the electricity generation industry. So, no doubt, many, many jobs will disappear from the implementation of "cap and trade."

Where is the job creation? Obama calls this legislation a "jobs bill." Really?

Obama has a novel concept: put a multi-hundred billion tax on an industry, kill it off, and then hope that alternatives thrive! This is an absurd view of how economies work. More likely, the result of the Obama war on carbon and the economy will dramatically reduce the standard of living of most Americans, do nothing for global carbon emission, and guarantee a generation of economic stagnation for the American economy.

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