Energy
Posted: 03/19/09
The Cost of Cap-and-Trade: Original Estimates Lowball Anticipated True Cost
The energy paradigm shift anticipated from the President's "green" initiatives continues to bring speculation on costs to industry and consumers.
As mentioned in our March 12th article, "End Foreign Oil Dependence: But Let's Not do it the Hard Way," "Energy is one of the three verticals the Obama administration has identified as a priority along with Education and Healthcare. Although President Obama's campaign rhetoric suggested a more centrist approach to the energy crisis it now appears that he intends to make radical changes in how America obtains and uses energy.
The important question is 
what will this do to our economy short term? Can we really afford the huge increase in energy costs the "Cap-and-Trade" legislation would inevitably pass on to the consumer? So, in becoming energy independent, do we really have to do it the hard way?"
Then on March 18th the Washington Times published the following:
"President Obama's climate plan could cost industry close to $2 trillion, nearly three times the White House's initial estimate of the so-called "cap-and-trade" legislation, according to Senate staffers who were briefed by the White House. ...
At the meeting, Jason Furman, a top Obama staffer, estimated that the president's cap-and-trade program could cost up to three times as much as the administration's early estimate of $646 billion over eight years. A study of an earlier cap-and-trade bill co-sponsored by Mr. Obama when he was a senator estimated the cost could top $366 billion a year by 2015.
A White House official did not confirm the large estimate, saying only that Obama aides previously had noted that the $646 billion estimate was "conservative."
A spokesman for House Minority Leader, John Boehner had quite the response:
"The last thing we need is a massive tax increase in a recession, but reportedly that's what the White House is offering: up to $1.9 trillion in tax hikes on every single American who drives a car, turns on a light switch or buys a product made in the United States," said Michael Steel, a spokesman for House Minority Leader John A. Boehner. "And since this energy tax won't affect manufacturers in Mexico, India and China, it will do nothing but drive American jobs overseas."
Last week, I stated that Obama was trying to do everything at once in his energy legislation... institute a Leftist agenda while addressing the economic crisis. I emphasized the fact that you must prioritize in order to be successful in turning any situation around. I missed something. Looking back, Obama's "agenda" was more important from the start. He had prioritized. Dick Morris, author of the best selling book "Fleeced" says (paraphrased)
"Obama is a principled man who will sacrifice his presidency for the sake of his principles... they're just the wrong principles."
I agree. The charismatic fog surrounding our country is beginning to clear and one can almost see straight on to morning... it's a Chicago-style, political kind-of-a-day.
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