Saturday, August 15, 2009

It's The Economy, Stupid!

Unemployment officially dropped to 9.4% last month from 9.5% in June. On the surface that would be a good thing, but there were actually more people unemployed. Due to the fuzzy math used in calculating the unemployment rate (I would blame the current administration, but in reality they all use this math) the rate dropped. The official calculation only counts those that are currently looking for work and collecting unemployment. It does not include those who have reached the point where they are no longer looking for work or whose unemployment benefits have run out.

If you have read here before, you may already know that I am not a fan of the cap and trade bill that passed the House in June. I believe that the majority of CO2 and climate change is naturally occurring and any attempt to regulate man made CO2 emissions will have little if any effect on climate change. Even the EPA admits that without global commitment to reducing emissions, that the Waxman Markey bill will have little impact on CO2.

The Science Applications International Corporation (SAIC) recently finished an analysis of the impact on jobs and the economy from the bill. It is not good news. According to the report, between 2012-2030, the bill reduce the national GDP by $2-3 trillion. Manufacturing output would be expected to decrease 5.3-6.5% resulting in additional job losses of 1.8-2.4 million jobs. The study takes into account the potential new jobs that so called green energy could create. Let's not forget the expected increases in energy costs, 50% for electricity, 26% for gasoline, and 20% for natural gas. Higher energy costs, fewer jobs, lower GDP; not a good recipe for success.

A recent Rassmussen poll showed that 42% of Americans believe cap and trade will hurt the economy and only 19% believe it will help. In that same poll, 41% of Americans were at least somewhat against the bill, and only 37% are at least somewhat for the bill. The strongest feelings were on the "no" side with 25% strongly opposed and only12% strongly for the bill. A recent Gallup poll showed that a majority of Americans favored economic expansion over environmental concerns.

At a time when unemployment is the highest it has been in years, the last thing we need is to pass legislation that will further slow the economy and cost jobs. When the Senate returns in September, the climate change bill will be on their agenda as well as health care. So while more Americans are against cap and trade then for it, why do the Democrats insist on passing a bill that will go against the priorities of the American people? I would say that as usual, the leftist elite believe they know what is better for us than we do. So while the debate on health care reform is vitally important, let's not forget the debate on cap and trade.

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  1. Australia killed it with a no vote. It is an economy killed, no doubt.

  2. This is true. Even if the global warming alarmsits are correct, it does not good if it is not a global agreement.



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