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Trading Lessons

Cap and Trade Bill HR 2454 Will Lead to Capital Flight

Politics / Market Regulation Jun 29, 2009 - 05:25 PM GMT

By: Dr_Ron_Paul

Politics

In my last column, I joked that with public spending out of control and the piling on of the international bailout bill, economic collapse seems to be the goal of Congress. It is getting harder to joke about such a thing however, as the non-partisan General Accounting Office (GAO) has estimated that the administration's health care plan would actually cost over a trillion dollars. This reality check may have given us a temporary reprieve on this particular disastrous policy, however an equally disastrous energy policy reared its ugly head on Capitol Hill last week.


The Cap and Trade Bill HR 2454 was voted on last Friday. Proponents claim this bill will help the environment, but what it really does is put another nail in the economy's coffin. The idea is to establish a national level of carbon dioxide emissions, and sell pollution permits to industry as the Catholic Church used to sell indulgences to sinners. HR 2454 also gives federal bureaucrats new power to regulate a wide variety of household appliances, such as light bulbs and refrigerators, and further distorts the market by providing more of your tax money to auto companies.

The administration has pointed to Spain as a shining example of this type of progressive energy policy. Spain has been massively diverting capital from the private sector into politically favored environmental projects for the better part of a decade, and many in Washington apparently like what they see. However, under no circumstances should anyone serious about economic recovery emulate an economy that is now approaching 20 percent unemployment, where every green job created, eliminated 2.2 real jobs and cost around $800,000 each!

The real inconvenient truth is that the cost of government regulations, taxes, fees, red tape and bureaucracy is a considerable expense that has to be considered when companies decide where to do business and how many people they can afford to hire. Increasing governmental burden directly causes capital flight and job losses, as Spain has learned. In this global economy its easy enough for businesses to relocate to countries that are more politically friendly to economic growth. If our government continues to kick the economy while its down, it will be a long time before it gets back up. In fact, jobs are much more likely to go overseas, compounding our problems.

And for what? Contrary to claims repeated over and over, there is no consensus in the scientific community that global warming is getting worse or that it is manmade. In fact over 30,000 scientists signed a petition recently directly disputing the claims on which this policy is based. Legitimate environmental claims should instead be directed towards the public sector. The government, especially the military, is the most serious polluter in the country, and is exempt from most EPA regulations. Meanwhile Washington bureaucrats have classified the very air we exhale as a pollutant and have gone unchallenged in this incredible assertion. The logical consequence is that there will come a time when we will have to buy a government permit just to emit carbon dioxide into the atmosphere from our own lungs!

The events on Capitol Hill last week just demonstrate Washington's audacity in manufacturing problems just so they can expand government power to solve them.

Dr. Ron Paul
Project Freedom

Congressman Ron Paul of Texas enjoys a national reputation as the premier advocate for liberty in politics today. Dr. Paul is the leading spokesman in Washington for limited constitutional government, low taxes, free markets, and a return to sound monetary policies based on commodity-backed currency. He is known among both his colleagues in Congress and his constituents for his consistent voting record in the House of Representatives: Dr. Paul never votes for legislation unless the proposed measure is expressly authorized by the Constitution. In the words of former Treasury Secretary William Simon, Dr. Paul is the "one exception to the Gang of 535" on Capitol Hill.

Dr. Ron Paul Archive

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Comments

AntonioSosa
30 Jun 09, 23:17
A giant step towards Marxism

Of course, cap and trade will kill the U.S. economy! However, lies, manipulation, intimidation and bribes were used to force the House to pass Obama’s economy killing bill! House members were not given time even to read the bill!

Obama and his accomplices thus trampled on our human right to be represented and defended by our Legislative body.

Obama’s Cap and trade is another giant step towards Marxism — and the corruption, poverty, enslavement, destruction and despair that Marxism entails.

Obama is working much faster than Hugo Chavez at destroying the economy and imposing Marxism. No wonder the Russians are gloating:

From Pravda: “…the American descent into Marxism is happening with breath taking speed, against the back drop of a passive, hapless sheeple, excuse me dear reader, I meant people…” http://english.pravda.ru/opinion/columnists/107459-american_capitalism-0

We must do whatever is necessary to defend ourselves and our children from from Obama and his accomplices.


Gordon
02 Jul 09, 20:19
Obama's cap and trade

I voted for Obama,

I was wrong, please forgive me.......


Phill
09 Apr 10, 11:17
Cap and Trade Bill and Homeownership Licenses

Is it true that within this bill is a provision that will require homeowners to purchase a renewable license on their home?


Paul
09 Apr 10, 16:22
too late Gordon

Wouldn't have mattered which brainless teleprompt master you voted for Gordon. You may as well have put Sarah Palin in for what its worth. The decisions would have been the same but at least she'd be comical to watch while she tried to explain them.


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