Yesterday saw the democrats bringing up their environmental agenda in the form of cap and trade. And, while this is probably the least egregious form of emissions control, it’s still terrible economic policy.
Though cap and trade will allow for free market solutions as to who gets what as far as pollution vouchers. However, it will only go towards creating more expensive energy in a time when energy costs have sent our economy into a heavy negative correction. This financial crisis was started because energy costs went so high that people were not able to make the payments on their subprime mortgages that the banks were forced to make by the government through the CRA. After this debt started going bad, banks didn’t want to lend, leading to a contraction in the financial market. It’s quite simple to understand.
However, the democrats out on Capitol Hill either don’t get this or don’t care, I’m not sure which. They keep raising taxes (on everyone not just those making over $250,000 like Obama had promised), and increases regulations adding on to costs that we Americans have to pay for goods and services. Anyone who knows anything about anything can realize that we should not be increasing taxes and costs for people when we’re in the middle of a recession.
If one thing has ever been proven to work the same way every time, it’s that increased taxes and regulations only contract an economy. So, what do the democrats do over the first 100 days of the Obama presidency? Raise taxes and regulation. You’re not the only one who sees that this is backwards thinking.
If we want people to be able to keep their houses cool over the summer, if we want to regain lost jobs in America, and if we want to ever get out of recession mode, we have to make sure that laws which only prevent growth, like cap and trade, are not tolerated.
Call your representative and let her or him know how you feel about cap and trade.