What Do You Need To Know About Cap and Trade
The number one lesson to learn about Cap and Trade is that it works by increasing the cost of energy. There is no way around it, and most politicians admit to this key fact.
Under Cap and Trade companies that “pollute” carbon dioxide would forced to buy carbon credits that offset this pollution. The amount of carbon credits sold is supposed to be a fixed amount, and that fixed amount of carbon credits is sold to the highest bidder. Therefore, companies have to adjust for a cost that they have never had in the past. If someone can explain, why this policy would not increase prices……that person needs to go back to school. As an aside, the Lieberman/Warner bill does not start at 100% auction of the credits, in fact many are handed out for free the first several years. This even makes the bill worse by letting the government hand out large portions of money.
So, why then do politicians still support Cap and Trade? I don’t know, but in part this misguided policy is supported because of the revenue that it would supply to Washington. It also allows Politicians to say that they did something about global warming. This is of course of lie, but since most politicians are used to lying to themselves, why stop them now?
