Government Study Shows Cap-and-Trade Will Raise Energy Prices
By Peter Roff, Thomas Jefferson Street blog
U.S. Reps. Henry Waxman of California and Ed Markey of Massachusetts, two of the leading Democratic co-sponsors of H.R. 2454—the American Clean Energy and Security Act of 2009, better known as the cap-and-trade bill—asked the United States Energy Information Administration to analyze their bill's impact on energy prices and the U.S. economy.
According to a draft of the report released Tuesday night that has already found its way into the media and is circulating through Washington, Waxman and Markey may now wish they hadn't.
The EIA is the official source of U.S. government statistics on energy. As its Web site boasts, it "provides policy-neutral data, forecasts, and analyses to promote sound policy making, efficient markets, and public understanding regarding energy and its interaction with the economy and the environment."
It is not a partisan organization and its record is impeccable.
The bottom line of the EIA's projections is that, through the year 2030—which is as far out as the modeling will allow it go with any degree of certainty—the legislation that passed the House "increases energy prices." EIA's independent conclusion confirms what the opponents of the cap-and-trade bill have been saying all along—that the regulatory approach backed by the Obama White House will lead to higher energy prices for the American consumer, making it a tax on American family energy use.
Allowing that the "allocation of free allowances to regulated electricity and natural gas distribution companies" will lessen the impact of the legislation on energy prices in the initial phase, through 2025, the EIA draft report says that the "average impacts on electricity prices in 2030 are projected to be substantially greater, reflecting both higher allowance prices and the phase-out of the free allocation of allowances to distributors between 2025 and 2030."
In plain English, that means the price of energy will go up a lot after 2025, solely because of what the cap-and-trade bill requires.
EIA also says that because the cap-and-trade bill that passed the House "increases the cost of using energy," that real economic output will decline. This, in turn, "reduces purchasing power, and lowers aggregate demand for goods and services," which pushes projected real gross domestic product down below where it is predicted to be if everything is otherwise left alone.
So the secret is out. The fig leaf has fallen. The real point of the cap-and-trade bill is to reduce the production of greenhouse gases by driving up the price of energy. The savings in emissions will come not from new, breakthrough technologies like solar and wind and cellulosic ethanol and advanced nuclear reactors like the Bush administration pushed for, but by reducing U.S. economic activity.
If energy is more expensive, people will use less of it. That's how the market works.
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Death Panels already Exists -- they are called insruance companies
I’m amazed at the confusion of the current health care debate. I just don’t understood why any middle class American would want to accept the status quo of health care. The conservative arguments about why they would not want a government public option are the same arguments you could apply to the current health care system. What confuses me, this should not be a conservative or liberal debate. It should be a debate about what is best for Americans v.s. profit orientated decisions made by insurance companies looking out for their bottom line.
Rationing - health insurance companies do that now. If you have coverage and your level of sickness is beyond the expense they are willing to cover, they will drop you in a heart beat. It happens to thousands of middle class families after years of paying their premiums. They find themselves with a serious illness that is beyond the threshold of what an insurance company is willing to pay and they drop you. To stay alive your only option is to go bankrupt. Lets not create false facts for a bill that does not even exists. Instead, lets stick to the facts that are now part of insurance companies’ decisions to ration health care based on profit and greed so insurance CEO’s can afford their million dollar mortgages and million dollar expenditures to buy out politicians. Just think of how many lives those millions could save if their insurance policy would of not been dropped by greedy CEOs and conservatives who live off of middle class premium payments that turn out be nothing but donated money to insurance companies to do with what they want (reminds me of how wall street handled my 401K money). Yes, insurance companies want to maintain the status quo and is willing to spend millions of your premium dollars to do so, but if your degree of sickness is beyond their threshold of expenses, they won’t spend another dime to take care of your health needs.
I had a friend who had a very serious illness that required his leg to be amputated. The insurance company said they would not cover him because when he was a young boy he had broken that same leg. Yep, they got him on some pre-condition clause in his contract. After years of paying his insurance premiums, he lost his leg and had to foot the bill. Maybe you screamers should spend more time reading your insurance policy fine print and be asking Insurance Companies CEOS the same tough questions you are asking Obama. But then again, insurance companies are going to tell you what you want to hear until the time comes when you need coverage and they say “we never said that”. Remember, they have the best lawyers money can buy. Meaning, you will always lose any argument with an insurance company.
Death Panels - Why are middle class Americans listening to Insurance company mouth pieces like Fox news, Shaun Hannity, Bill O’Reilly who are millionaires (or at least far from being considered middle class) with the best health insurance money can buy. You really think they are facing the same problems middle class families face? Besides, Fox news is a PR dream for conservative and insurance CEO’s agenda of maintaining the status quo. As long as this PR propaganda machine is supporting their million dollar scams over middle class families, do you really think insurance companies are not going to take care of their golden boys’ health needs. If anything, insurance company CEOs are smart business people (or crooks depending on how you look at it) and they are going to take care of the health needs of their PR promoters so they can continue to make millions off the backs and suffering of middle class Americans. For you, Mr and Mrs middle class, your only worth is as good as your premium payments until the insurance company’s death panel decides your life is not worth paying for when your expense for health care is beyond their boundary of coverage. In other words, Ms Palin, we now have death panels who decide what illness they will and will not cover and we even get the privilege of paying premiums for years before they decide our fate. These death panels are called insurance companies.
Status Quo - If the screamers at town hall meetings want to continue the status quo of paying their insurance premiums to make insurance company CEOs millions by rationing what illness they will and will not cover, my hope is that the screamers’ fate is not placed in the hands of the death panel boards at health insurance companies. If that is what conservative screamers want, than keep listening to the lies and distortion of Fox news and the paid mouth pieces of Insurance Companies. Your dream, or should we say nightmare, may come true. I have one question to conservative screamers. Why would you put your life in the hands of million dollar corporations whose decisions are profit driven over the government? Why would you trust them, over a non-profit public option? With so much evidence of how the status quo is killing Americans for profit (not even reasonable profit, but outlandish greed), I don’t get why middle class, Republicans and Democrats, would not demand health care reform. This is not a Party problem, not a well to do American problem, but a middle class problem that is being taken advantage of by Corporate CEOs whose bathroom is probably bigger than most middle class American homes. Besides, remember the last time we listen to conservative Karl Rove scare tactics of lies and distortion. It got us in an Iraq war based on lies that cost millions of tax payer dollars. Yep, conservative tactics are pretty obvious or did we all forget. I’m not ready to put my trust in whatever agenda the party of do nothing but complain without solutions may have in mind other than keeping the rich, richer so they can continue getting lucrative campaign donations to maintain the status quo. I spent 23 years in the military. Had the best health care money could buy. Guess who ran it? The government, not some profit orientated health insurance company who decides if my health needs are too expensive for their bottom line
Global Warming is NOT the issue!
Global warming will always be debateable but Energy Independence is not. Energy efficiency in the US along with a move to Nuclear and Renewables will only be possible if you put price pressures in place that promote investment. Whether Cap and Trade or Carbon Tax, we as a country will not invest in the alternatives including Nuclear if price pressures aren't demanding it. A Nuclear Plant is a $7 bil investment. Why build a Nuclear plant when a coal fired plant is much cheaper to build and maintain. There is no demand for nuclear power today. A Nuclear mandate will never work given the "not in my backyard" attitude of local politicans and constituents. There was a reason Nuclear Plants grew in the 1970's. Oil prices were too high, our enemies were getting richer, thus there was a true market need for alternatives. This is the same reason this is up for discussion again. $100+ oil stifles the American economy while our enemies grow rich. Put in the price pressues and you will see America change for the better.
Study for the povertystricken start ups funds. READ THIS.
Government should study and think about helping poverty stricken unemployed with startup money. It would take several months to get furniture and a down payment for a vehicle. Not 1500 dollars but vouchers? Government should study why furniture companys spend 70 dollars on supplys. Then companys put a price tag of near 300 dollars!! Thats crazy. Software and tech companys purposely engraving or placing bad menu words to confuse patron or buyer. Such as acid pro music software. That company is guilty. Anyone can put a box with correct words or helpful termnology. Such as add instrument words and add instrument sound box and equalize instument box. And more troubleshooting or problem solving information. Also in hollywood. Why is film co always producing boring or clowny comedy films? Very little rambo or non pornography martial art films. They know now about what they create. It is ignorant because they are saying no to millions of dollars. I will chose karate kid over jet li a bunch. Also a low amount of fitted cotton jackets vs polyester. Cotton is way more comfortable. Hipness is being targeted and no conspiracy law to stop it. These groups are caught.A minority group would be only responsible for this much hatefulness!!!! Woe to you business men. psa99:9-outside pray. Be careful. 1 corinth 14:26. Col 3:11. Choose righteousness especially when in doubt. Not selfcentered or self righteous.
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