The fairytale is that somehow the 'cap and trade tax' on carbon based fuels will not cost the individual any thing. All that money is going back into lowering the utility bills of consumers. This one ranks right up there with the tooth fairy. Actually it's more like the troll from under the bridge.
If the purpose of the cap and trade tax is to cut the use of the carbon fuels in the short run, while newer fuels are being developed, then it will have no effect at all unless it decreases the demand for those fuels.
To decrease the demand, you raise the price of the item higher than it would be raised by inflation alone. Simply put, when a higher percentage of one's income is spent on carbon fuel based energy then demand will fall. To drop demand the price, relative to a person's income, must go up. In other words taxing the producer, then using the money to reduce the retail price of the product to the consumer, would have a zero net effect. To get any effect at all, the government has to allow the price of energy products to rise significantly.
That my friend is the heat for your home and the gas for your car. Cap and trade will have a negative effect on the consumer and the economy. That is just a fact. One that no one seems to be very upset about. I don't care whose idea this is, it is going to hit people like me very hard. I live in a relatively mild weather state. Those of you farther north are going to really pay.
Yes it will have an effect on the carbon emissions output, but only because it takes less gas to cremate an old guy like me than it does to keep him warm. That is if you take into consideration all those additional years he might have lived without the cap and trade tax.
It's going to effect a lot more than just keeping warm. It is going to add to inflation in general. Every product period is to see a price increase. From the bread we eat to the clothes we wear. Manufacturers will pass their increased cost in utilities and transportation right along to us.
Welcome to Jimmy Carter II the second story.
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Do you ever get tired of hearing all the continued hype about emissions? Ya know, when a volcano blows, it put way more crap in the atmosphere than anything we could do with our carbon emissions!
ReplyDeleteWhen it doesn't make sense...there's a buck in it!
I believe we will witness, the first time in our country's history, just how much the government is going to step in and "take over"! That fuel issue is really something to me.........they raise those prices to generate fear in the public, get them to lock their prices in, and them WHAM, drop the price and screw everyone that did........just like they did last fall!