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CAP and TRADE (by Patsy Patriot) What is Cap and Trade? How will it work? How will it affect the average citizen? Will it be the vehicle which stimulates the U.S. economy, or will it cripple the economy? Hopefully, the following facts and information will make these issues clearer and assist voters when selecting candidates for the midterm election in November. According to the Center for American Progress, the goal of a Cap and Trade System is to steadily reduce Carbon Dioxide, and other greenhouse gas emissions, in a cost effective manner. Or, to put more simply, the goal is to reduce the rise in global warming. Global warming theorists believe the Earth has been steadily warming over the past few decades to the point that it is now detrimental to the environment. They point out that polar ice caps and glaciers are melting, and this in turn, will cause the sea level of the world’s oceans to rise significantly. They foresee elevated sea levels which will cause massive flooding of coastal areas around the globe. There may also be a shift in ocean currents which can also affect weather patterns. Global warming occurs as the result of an increase in naturally occurring greenhouse gases, including Carbon Dioxide (CO2) and Carbon Monoxide (CO), in Earth’s atmosphere. Greenhouse gases insulate, or hold in, heat radiating from Earth so that it is possible for man to survive. The fear is that man is adding to these greenhouse gases by burning fossil fuels (coal and petroleum products) which emit CO2 and CO emissions into the air. Some scientists think this accumulation of greenhouse gases causes catastrophic weather related conditions which bring a horde of other situations, such as disease, unsanitary living conditions, famine, job losses, and a general disruption of everyday lives. Global warming is taught as a scientific fact in schools and colleges, and due to the propaganda perpetuated by politicians, and some scientists, most people accept the global warming theory as true. However, it was recently discovered that certain scientists admitted to falsifying records to prove their theory that global warming and climate change are actually happening. For several years scientists and politicians have been warning us of the inevitable dangers of global warming. The truth is the Earth has actually been following a cooling trend over the past decade; prior to 1997 Earth had been following a warming cycle. We know that weather patterns and global temperatures have been cyclical since the beginning of time. Think of the Ice Ages when most of the life on Earth was destroyed and geographical features of the Earth were changed drastically. Other natural occurrences affecting weather patterns are cycles of the sun’s activities, Earth’s tilt, which has a slight wobble as it rotates on its axis, and the elliptical-shaped orbit of Earth’s path around the sun. This whole matter of climate change is a very complex subject, and it may take many years of study in order to reach a definite scientific conclusion. The Cap and Trade System is directly linked to the man-made global warming hypothesis. It is a market-based approach which would allow a governing body (such as an agency appointed by the president) to set limits, or caps, on the amount of greenhouse gases that may be emitted into the atmosphere. This body would establish and oversee all rules for purchasing and/or trading carbon credits. For example, if a company exceeded its caps, or limits, it would be permitted to purchase carbon permits from another firm which did not reach its limit on carbon emissions. One might think of it as the buyer paying for polluting and the seller as being rewarded for emitting less greenhouse gases into the air. At this time, it is unclear as to the exact procedures and protocol for governing a program such as this. It is thought, however, that the government would issue or sell the carbon credits to regulatory agencies, or companies that are responsible for operating a Cap and Trade System. As fossil fuels burn they release CO2 and CO into the air. These carbon emissions are measured in metric tonnes (2,200 lbs) and are referred to as carbon footprints. Experts estimate in 2007 China was responsible for 22.2 percent of all global carbon emissions; America followed China with 19.9 percent, India 5.5 percent, Russia 5.2 percent, and Japan 4.2 percent. Since that time the United States has continued to steadily decrease its carbon emissions, so that it is no longer the highest emitter, as it was previous to 1997. The tiny country of Qatar had the highest per capita carbon emissions with 56.2 metric tones per person. The United States was in ninth place with 19.1 metric tonnes of carbon emissions per person. Point Carbon, a market analysis firm in Oslo, Norway, predicts one tonne of carbon will sell for $13.70 in 2012 and $16.50 by 2020. These costs for carbon permits will naturally inflate prices of electricity and gasoline. The Congressional Budget Office estimates a Cap and Trade System would generate $50 billion to $350 billion in Federal revenues during the first year that the program is in place, and every year thereafter. Martin Feldstein, a Harvard economist, predicts the bill will cost each American an additional $1,600 per year in energy costs. With this increase in the price of electricity and gasoline one might also expect a surge in costs of all goods and services available to consumers in America. Coal provides more than half of our country’s electricity. Those states which use the most coal would be taxed much more than states such as California, which uses very little coal. Therefore, the Midwest and South, which have lower incomes and standards of living, would bear the burden of paying for a Cap and Trade System. William O’Keefe, president of Solutions Consulting, Inc., stated in the New York Times that a Cap and Trade System “would provide a playground for wealthy investors to become even wealthier at the expense of the lower and middle classes”. President Obama made Cap and Trade legislation one of his priorities while campaigning in the 2008 presidential race. Ed Morrissey, of the New York Times, quoted Henry Waxman as stating that “…a Cap and Trade bill will definitely be passed by the Senate if Democrats maintain a majority in 2011.” A form of the bill was passed by the House of Representatives in June 2009. The vote was 219 to 211, with three abstaining to vote. The legislation proposes to reduce greenhouse gases 17 percent by 2020. There is a controversy already in place as to how the tax increases will be spent. Some government officials and political leaders assure the public that money from sales of carbon credits will be set aside for tax relief and for research and development of new technology to contribute toward cleaner air. It has also been suggested that some profits be given to lower income families to offset increases in living costs. President Obama has declared that a Cap and Trade bill will pay for the (very unpopular) health care reform. Those opposed to a Cap and Trade bill fear that it is a scheme to redistribute wealth and income, not only here in the United States, but to Third World countries. It takes from the middle class and gives huge profits to the firms which will sell carbon credits. It will give tax credits and/or other handouts to lower income families. According to the Wall Street Journal it takes from the struggling working (middle) class and gives to Silicon Valley. It further stated that it is no accident that Barbara Boxer, Harry Reid ( who live in California and Nevada), Ed Markey, and Henry Waxman (East Coast residents) are proponents of Cap and Trade since it will raise their taxes very little. Opponents predict the bill will result in economic catastrophe, driving up excessive energy costs and further weakening an already shaky economy. President Obama also believes in the ideology of Social Justice, which is just another term for redistribution of wealth. He has said that Western Powers have become wealthy at the expense of struggling Developing Nations, such as Palestine, Kenya, and Somalia. The President feels that America has enjoyed a high standard of living for too long and needs to level “the playing field” by causing citizens to pay higher taxes and earn lower wages, and he suggests redistributing these profits to Developing Nations. The goal of this administration is to create a world in which all nations have equal living conditions and equal economies (except for the elite who would have opportunities to become very wealthy). Elections will be held November 2, 2010. It is essential that every citizen study the candidates, research the issues, and vote for those whom you believe will strive to make America strong and restore our reputation around the globe. Every voter needs to motivate friends and neighbors to vote in these crucial midterm elections. Replacing all career politicians who do not have America’s best interest is the only way Cap and Trade legislation can be prevented. |