Posts Tagged ‘green’

Cap and Trade Bill Passes the House

June 27, 2009

Though it was only by 7 votes, the cap and trade scheme has finally been approved.

Let’s look at the facts. Cap and Trade has not significantly reduced Carbon emissions in any country that it has been enacted in. It has never created more jobs than it has lost, and it has never amounted to more than a tax on a harmless gas. All the taxes assessed by Cap and Trade will inevitably be passes onto the consumer. Gas prices will skyrocket again, and the cost of virtually everything will increase.

Despite this fact, Barack Obama believes that this bill will actually create jobs. Says Obama, “This is a jobs bill”. According to CNN, Obama believes that this bill will actually create “millions of new jobs” [1]. Perhaps Obama needs a quick economics lesson: When the cost of everything increases and wages remain the same, aggregate demand is less, because consumers cannot afford to buy as much as before.

What Obama thinks though is that this bill will cause some sort of quick change to a cleaner United States, because as the costs of “dirty” products increase, the public is more likely to buy less “dirty” products. However, it is not that simple.

Those “dirty” products include gasoline, oil, natural gas, and coal. These products are currently the main contributors to the power grid in the United States. There is no true “green” alternative source of energy. Biofuels and biodiesels are not profitable without massive amounts of subsidies. Solar energyand Wind energy combined constitute less than half of 1 percent of energy production and are impractical to expand to even 5 percent. Hydroelectricity can not expand much more either, as there can only be so many dams on a river while maintaining high energy efficiency.

So, ultimately, this Cap and Trade Program is a massive energy tax. As energy costs increase for all americans in the face of a recession, how is the little guy that Obama was going to protect going to make his next house payment?

This bill has not yet passed the Senate, so there is still hope for the American economy.

[1]  http://www.cnn.com/2009/POLITICS/06/26/house.energy/index.html

The Economic Recession and Liberalism

December 24, 2008

 

While others may blame Bush for this recession, I will take the time to analyze the many factors causing this recession.

Gas Prices

Gas prices surged in the middle of the 2000-2009 decade. The increase in the price of oil increases the price of everything, as oil moves things from place to place. The fault of the rising prices goes to OPEC. The United States never joined OPEC and therefore has no say in it. To make a larger profit, these countries increased the price of oil exports. Local oil companies didn’t have the resources to compete in production, and were forced to buy this foreign oil at a high price.

In countries that don’t allow any drilling on their soil, such as England, people pay more than twice what the United States pays. Further, in countries such as Saudi Arabia, gasoline is sold for about a quarter a gallon. Ladies and gentlemen, there is an easy observation to make: countries that drill more and import less from OPEC have lower gas prices.

So, this first factor can be contributed to liberalism and the green movement, which continually attack oil production. There is no solution to dependence on oil; wind will never power a car (picture a car pulled by a sail) and the sun will never power a vehicle (the solar powered cars cost millions of dollars and can only travel about fifty miles per hour). Cars will never run on batteries or any form of electricity either. Battery powered cars are expensive as well, and most of their energy is wasted trying to move the battery portion of the car’s weight.

The Internet Boom

The second factor in this recession is the boom-bust cycle. The internet boom of the nineties and early 2000s was naturally followed by a bust. Though this boom has traditionally been linked to liberal policies, do not be fooled. The invention of the internet created a large boom as a new way to advertise, communicate, and gain information rose. A bust naturally followed.

Economic Panic

The third factor in this recession is the press. Yes, when people hear that the economy is turning down, they save their money and spend less. Yes, a panic like this lead to many recessions and depressions. The Great Depression began when the stocks (which had always only gone up steeply) began to turn down. The following panic resulted in people selling their stock. Naturally, stock prices fall. More people freak out and sell, etc.

Even before the stock exchange, there were panics. Freaking about the possibly of a large inflation problem, many people ran to cash their money in for gold, as allowed back then. There wasn’t enough gold to do this. This became the Panic of 1893.

So, the fear of a recession often leads to a greater one. The media spewing this around will lead to another depression, and, like the last depression, a whole new set of socialist programs.