Cap and Trade Legislation- Bad News for America

Okay, I have a huge ax to grind with our Federal government for the latest bill proposed, HR.2454 – American Clean Energy and Security Act of 2009.  In this act, the federal government has once again figured out how to do what they do best… suck more dollars from our free-enterprise system to fuel their rampant and most-often, ignorant, mis-allocation of capital.  I am an ardent believer in the need to preserve our environment, however, this piece of legislation helps to steer more dollars into the Federal coffers and does very little to bring about the true “security” that the bill’s name implies.

I have provided a link below that will provide more background on the bill and its intended aim:

H.R.2454 – American Clean Energy And Security Act of 2009

As of June 26, 2009 the measure had passed in the House by a  wide margin but appears to be up against significant resistance in the Senate.  A recent article from mid-August details the less than likely affirmative vote needed from the Senate to make this law.  [article in American Thinker]

Ultimately, my primary issue with the legislation is that it works on the same premise that so much of Washington revolves around, that premise is very simple – “TAX IT”. Don’t like it > “Tax it”…. can’t pay for it, no worries let the Federal government handle it and we will “Tax it (i.e. You)”….Want “security” (i.e. Social Security, Energy Security, Health Security)….guess what – you are correct – “Tax it”. Look the enterprise and power hungry machine called Federal government has proven that they couldn’t manage a corner grocery store budget, let alone the trillions they are siphoning out of our economy right now.  Free market theorist like me eschew a simple ethos … stay the hell out of the way.  (i.e. guide / don’t force).  We have all seen the impact of government intervention, that case study was called…”let’s increase home-ownership rates, skip-ahead five years and we have a collosal housing melt down.  I am being extremely macro in my comments but you get the idea.

My second ax to grind is with the ardent Democratic voters who came out in droves to express their support and enthusiasm for Obama.  I applaud their enthusiastic exercising of their right to vote and becoming involved in the political debate.  Although I don’t agree with their vote I applaud their enthusiasm.  Jump eight months later and those same Obama zealots when asked about cap and trade…. reply – “Cap & WHO??”.  Long story short, many of these people got involved, purchased some T-shirts, decaled their car up like they were going to Woodstock – and after the election forgot about it.  Literally, they turned the switch off and went back to the daily grind trusting that our Federal government machinery would stay finely calibrated and not abuse the historic Democratic majority that had been achieved.  The right to vote is a priviledge with responsibility.  That responsibility is to stay engaged in the process.  I could go on – but I think you get the picture.

Below is a good video for those of you who need a quick primer on Cap & Trade.

World Flow of Oil


Here is a fantastic graphic from British Petroleum. (Source: BP Statistical Review of World Energy 2009). Very interesting to see the inbound flow of oil into the United States.  I was particularly interested to see the flows of oil from the Middle East into Asia areas and also the rest of the world.

Given the continued discussion about America’s energy dependence this graphic clearly shows their is a gap between public perception versus the reality.

 

World Flow of Oil in 2008
World Flow of Oil in 2008