Cap & Trade is a system for fixing a maximum emission standard for many industries.  Those standards will be an amount which is less than the amount the particular industry already emits through its manufacturing/producing.  In subsequent years, the amount of permissible emissions will continue to be reduced. 

What is the Economic Impact of Cap & Trade?

A factory/producer which meets its emissions limit will have a choice to make.  Either it can cease operations, or it can purchase “carbon credits” from a kind of carbon credit broker or clearing house.  These carbon credits are fictitious, intangible units which are akin to a license to permit the business’s continued operation over and above the emissions limit.  In short, it is a tax extorted from a business to purchase its right to continue operations after the point in each year where it meets the emissions threshold.

How does requiring businesses to purchase carbon credits help the environment? 

It does not.  Under the Cap & Trade regime, the money from purchasing carbon credits is paid to Al Gore or some other authorized seller of carbon credits, and to third world countries who have yet to industrialize.  The money paid to these third world countries is called “climate debt” in Cap & Trade parlance.  Yes.  That’s right, it is eco-reparations.  It is a well-concealed fact — even from eco activists — that Cap & Trade does absolutely nothing to protect the environment except in the worst case scenario where the burden it imposes causes the financial ruination of the perceived polluter-business.  Rather, it enriches our insider politicians — who have already cornered a market that has yet to be — and third world countries which have produced an exceptionless record of despotism and poverty with all other forms of aid heretofore.  Thus, even if you desire Cap & Trade, you should at least take the time to recognize that you are not doing it for the climate, the trees because their well-being has nothing to do with it unless you seek the collapse of all carbon-emitting enterprises.  If that is what you seek, you have more to learn than this post can teach.  In that event, I should like to point you to the post under the category “Usurpations & Abuses.”  I should then suggest that you be careful what you wish for, because we may be on the precipice of returning to the 18th century and you should buy many warm blankets.  Believers in Cap & Trade who truly seek the destruction of the energy industry may soon get to see which practice emits more pollutants; a free-market energy supply, or millions of Americans scurrying feverishly to build make-shift fires independently to avoid cold and starvation.   The irony of Cap & Trade is that while it would rain a considerable amount of eco-reparations dollars onto third world countries, it will ultimately reduce our standing of living to more closely resemble them.  As then presidential candidate, Barack Obama reported to wealthy, liberal San Francisco donors, Cap & Trade will bankrupt coal-fired energy plants, and necessarily cause energy costs to “skyrocket” for consumers.  The frightening thing is that he intends that very result and, obviously so did the donors.

Carbon Credit Billionaires

As indicated, a CO2-emitting business must purchase enough carbon credits to get it through each year, or shut down operations for the balance of the year.  But from whom must it purchase these fictitious, intangible units of nothing called carbon credits?  Well, that’s where things get interesting.  Al Gore is predicted to be the world’s first “carbon credit billionaire” because he owns one of the largest carbon credit clearing houses. 

Legislative Self-Dealing

Two high-profile members of the U.S. Congress are heavily invested in the sale of carbon credits as well.  Thus, they have a vested interest in passing Cap & Trade.  In fact, their enterprises are worthless unless government enacts Cap & Trade.  Some would argue that a conflict of interest arises when legislators have a pecuniary interest in seeing that Cap & Trade is passed.  No matter your position on Cap & Trade, when our nation’s lawmakers consider legislation, their primary concern should not be their own investments.  In fact, it is disconcerting that these particular investments — the carbon trade industry — in an industry which cannot even exist in the absence of Cap & Trade becoming law, have even been made prior to Cap & Trade’s enactment.

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