I didn’t have the energy to post on this Friday night, and it’s taken a while to get back to it, but I can’t help thinking that we’ve seen the definitive moment of the Democratic leadership of this Congress: they were in such a hurry to ram through their energy tax, they passed a bill that didn’t even exist. Seriously. As David Freddoso put it,
Through a series of parliamentary inquiries, the Republicans learned that the 300-plus page managers’ amendment, added to the bill last night in the House Rules Committee, has not even been been integrated with the official copy of the 1,090-page bill at the House Clerk’s desk, let alone in any other location. The two documents are side-by-side at the desk as the clerk reads through the instructions in the 300 page document for altering the 1,090 page document.
But they cannot be simply combined, because the amendment contains 300 pages of items like this: “Page 15, beginning line 8, strike paragraph (11)…” How many members of Congress do you suppose have gone through it all to see how it changes the bill?
Global Warming is apparently so urgent that we can’t even wait until members of Congress know what they’re voting on.
There’s supposed to be a section of the bill establishing and regulating a financial derivatives market (that’s the “trade” part of “cap-and-trade”); as of the time the bill was passed, that hadn’t been written yet—there was only a “placeholder.” Barney Frank said it was OK because he was sure they’d put a good system in place, and that was apparently good enough. Somehow, the thought of Barney Frank presiding over a sub-prime carbon market, when herefused to see the collapse of the sub-prime housing market coming, isn’t encouraging.
More than that, the purpose of this haste is to keep people from thinking about the economic effects of this bill, which aren’t going to be good. Bloomberg, the Heritage Foundation, andInvestor’s Business Daily have all laid it out:
As we’ve said before, capping emissions is capping economic growth. An analysis of Waxman-Markey by the Heritage Foundation projects that by 2035 it would reduce aggregate gross domestic product by $7.4 trillion. In an average year, 844,000 jobs would be destroyed, with peak years seeing unemployment rise by almost 2 million (see charts below).
Consumers would pay through the nose as electricity rates would necessarily skyrocket, as President Obama once put it, by 90% adjusted for inflation. Inflation-adjusted gasoline prices would rise 74%, residential natural gas prices by 55% and the average family’s annual energy bill by $1,500.
Hit hardest by all this would be the “95% of working families” Obama keeps mentioning as being protected from increased taxation. They are protected, that is, unless they use energy. Then they’ll be hit by this draconian energy tax.
Of course, the Democratic majority has been clever enough to make sure that the bill won’t actually take effect until 2012, so that it won’t mess up their chances for re-election in 2010; but once it does, as the Heritage Foundation notes, people will notice:
For a household of four, energy costs go up $436 that year, and they eventually reach $1,241 in 2035 and average $829 annually over that span. Electricity costs go up 90 percent by 2035, gasoline by 58 percent, and natural gas by 55 percent by 2035. The cumulative higher energy costs for a family of four by then will be nearly $20,000.
But direct energy costs are only part of the consumer impact. Nearly everything goes up, since higher energy costs raise production costs. If you look at the total cost of Waxman-Markey, it works out to an average of $2,979 annually from 2012-2035 for a household of four. By 2035 alone, the total cost is over $4,600.
That’s not the only cost, though; Bloomberg notes that this bill will drive a lot of jobs overseas and give foreign energy producers a competitive advantage over American companies. At a time when we’re trying to reduce American dependence on foreign oil, this bill will onlyincrease it.
America’s biggest oil companies will probably cope with U.S. carbon legislation by closing fuel plants, cutting capital spending and increasing imports. . . .
“It will lead to the opportunity for foreign sources to bring in transportation fuels at a lower cost, which will have an adverse impact to our industry, potential shutdown of refineries and investment and, ultimately, employment,” Mulva said in a June 16 interview in Detroit. . . .
The same amount of gasoline that would have $1 in carbon costs imposed if it were domestic would have 10 cents less added if it were imported, according to energy consulting firm Wood Mackenzie in Houston. Contrary to President Barack Obama’s goal of reducing dependence on overseas energy suppliers, the bill would incent U.S. refiners to import more fuel, said Clayton Mahaffey, an analyst at RedChip Cos. in Maitland, Florida.
“They’ll be searching the globe for refined products that don’t carry the same level of carbon costs,” said Mahaffey, a former Exxon Corp. refinery manager.
In short, this is going to blow a large hole in our economy. And to what purpose? Well, that’s still very much up for debate, as I’ve pointed out a few times. As the IBD editorial continues,
According to an analysis by Chip Knappenberger, administrator of the World Climate Report, the reduction of U.S. CO2 emissions to 83% below 2005 levels by 2050—the goal of the Waxman-Markey bill—would reduce global temperature in 2050 by a mere 0.05 degree Celsius.
Doesn’t sound all that impressive, does it? It’s partly because the countries to which we’ll be shipping all those jobs have significantly poorer environmental records than the US, as Rep. Fred Upton (R-MI) notes:
If one truly cares about the planet, why do we want to make steel in China rather than in the United States where our carbon emissions are one-third that of the Chinese per ton of steel produced? One Arkansas refinery recently testified that under a cap-and-tax regime, they would be forced to close their 1,200-employee plant while India builds the largest in the world to ship fuel to the United States with nowhere near the environmental protections we have. We’re not helping the environment by sending industries that operate cleanly and efficiently in the United States to a regulation-free China or India.
That’s probably partly why even within the EPA, there are those who question the value of this bill—but the EPA is unwilling to listen, even to the point of trying to suppress the study challenging global-warming dogma, because “the administration has decided to move forward”and nothing is to be allowed to get in the way (not even the facts). This is a classic example of that “triumph of ideology over science” that the Obama Administration was supposed to be against. Apparently they don’t mind it when it’s leftist ideology. (Or when it gives them the opportunity to pump money to special interests.)
Now, it seems to me there’s hope that the Senate defeats this bill—Sen. Jim Inhofe (R-OK) certainly expects that to happen, and he has a reasonable case—but there was never much for the House, since the House Republicans are functionally irrelevant. That said, I have to give House Minority Leader John Boehner (R-OH) credit for making the most of irrelevance; he didn’t have the votes to back him up, but he did a grand old job of carving up this turkey anyway, in what some dubbed a “mini-filibuster.” The reason for his speech? Informing the House as to what was in that 300-page “managers’ amendment,” so that no one who voted for the bill could claim they didn’t know. Bravo, Mr. Minority Leader. Bravo.