Cap What?

Wednesday, May 20, 2009

 

Believe it or not, some in this country think, oh wait, let me restate that, believe the planet will be saved by cap and trade. Okay, they don’t really believe that, they believe it is a first step in the right direction.

Forget details like, cap what, trade what?

 

Like duh man, cap carbon. And then if you don’t make too much carbon, you can trade your extra carbon coupons for money. It’s about saving the planet.

Of course, if you actually intend to do anything other than sit around and get high by candlelight, you might find energy pretty essential. People like farmers might need energy to grow food, publishers  need energy to produce books, schools need energy to turn on the lights, doctors need energy to save lives, and Hollywood stars need energy to fly around in jets. 

To clarify, the notion is to tax energy use on the presumption of carbon emissions as a greenhouse gas. And there is no trading, it’s a tax. The program starts with energy allotments that will be reduced over time, they will be inadequate to production, business will be required to purchase credits (more ration cards), and business will be encouraged (forced) to buy them from third world countries. 

Whatever your opinion on global warming, there’s no getting around the fact that cap and trade is a transfer tax from the productive to the non-productive.

In the end the cap will be on production of goods, services and our standard of living. The trade will be prosperity for poverty.

 

 

Larry Henson, President

Howard Henson & Associates, Inc.

800.223.6532             

405-471-4888