Trying to Make Unequal Things Equal

Commentary, Energy, Frontier Centre

The worst form of inequality is to make unequal things equal. Aristotle.

Human production of CO2 causing global warming or climate change is the biggest deception in history. Previously this statement met with incredulity. How could the entire world or a majority of scientists be fooled? Now after the almost complete collapse of the global financial system people understand. The Obama government is fooled because it doesn’t want to understand and it suits their political agenda. They ignore facts and abandon logic to produce policies guaranteed to continue US economic decline.

Vilification of CO2 and Cap and Trade

Vilification of CO2 allows them to push Cap and Trade as essential to save the planet when it is solely a major source of tax revenue. It allows them to push alternate energies that don’t work, are already heavily subsidized and will leave the US energy deficient for decades to come. They promote them under the guise of energy independence when that is attainable with coal, natural gas, nuclear and geothermal. It is all about government control and will add enormously to the US cost of living. The Heartland Institute estimates the impact of the Waxman – Markey bill will:

  • Reduce aggregate gross domestic product (GDP) by $7.4 trillion,
  • Destroy 844,000 jobs on average, with peak years seeing unemployment rise by over 1,900,000 jobs,
  • Raise electricity rates 90 percent after adjusting for inflation,
  • Raise inflation-adjusted gasoline prices by 74 percent,
  • Raise residential natural gas prices by 55 percent,
  • Raise an average family’s annual energy bill by $1,500, and
  • Increase inflation-adjusted federal debt by 29 percent, or $33,400 additional federal debt per person, again after adjusting for inflation.
  • This is damage to the domestic economy but the added cost to manufacturing will make the US uncompetitive in world markets. It is a self-destructive agenda. The revenue from Cap and Trade is essential to help pay just part of the interest on the massive amount of money borrowed for the stimulus package and the budget. However, it will restrict growth thus reducing internal and external wealth creation. Naively the budget proposal assumes a growth in the economy to generate more money to pay down the debt, but Cap and Trade assures it won’t happen.

    Beyond this stupidity there is the problem of pushing for CO2 reduction internationally. The Obama commitment to curry favor with the world, in contrast, it claims, to the previous administration, makes Cap and Trade necessary. But that creates a completely illogical position.

    Barney Frank’s ridiculous claim

    Most of the money for the stimulus came from China and adds to the US indebtedness to that nation. This seriously weakens US negotiating positions with them regardless of Barney Frank’s ridiculous claim that “he doesn’t see “a problem” in the U.S. borrowing money from China for the stimulus.” The lender is automatically in ascendancy, as ordinary people fully understand.

    Cap and Trade, the new name for Carbon Credits

    Cap and Trade, the new name for Carbon Credits, evolved from the Kyoto Accord as a deliberate policy to equalize wealth. China and India as developing nations were not required to reduce CO2. However, developed nations were expected to pay by buying credits from the developing nations. The money was to help development and adaptation to climate change.

    When Kyoto was ratified the idea that China and India were developing nations was rapidly disappearing. Now the Chinese economy is so robust that it continues to grow and has invested large amounts of money in the US government and economy. It holds 17.2% of US Treasury Securities. Even in 2008 the Chinese economy was expected to equal the US economy in 2035 and now some say in 10 years because of the Obama policies. Investments in China are promoted as a good investment and although it suffered from the recession the economy is already rebounding.

    While Obama pushes to restrict the US economy and hamper US competitiveness in world markets, China plans no such restrictions. They passed the US in CO2 production last year as the cartoon illustrates. While it gets the amounts correct it perpetuates the false charge that CO2 is a pollutant.

    China is also opening a reported two new coal burning plants a week and are leading the US in improving their efficiency.

    Now we have the ludicrous situation that China as a developing nation is pushing for the US and other developed nations to meet their commitments to carbon credits by reducing their production of CO2.

    “Developing countries generally insisted that industrialised countries should commit to cuts of at least 40% below 1990 levels by 2020.

    China insisted that it made no sense to talk about long-term targets for all parties before developed countries had agreed to such reductions”.

    They did the same with CFCs in the ozone issue – you lower your level and we’ll raise ours to achieve equity. If done with CO2 it will increase the competitive advantage for China and India is also pressing the advantage.

    India today said it will not accept any cap on its development in the name of climate change, asserting that any negotiation on climate change should take into account the overriding developmental objectives of the developing countries.”

    CO2 is not causing global warming or climate change. The world is realizing they’ve been fooled and CO2 reduction is unnecessary. The Obama administration trapped by ideological positions about private industry, by election commitments, and by a desire to increase the size and role of government, wants to be fooled. They need the revenue from Cap and Trade to offset the massive borrowing and spending. They engage in the charade of denying it is a tax. They ignore the fact it will increase the cost of everything within the US and make business and industry uncompetitive in world markets. Now China, India and other developing nations are demanding the developed nations meet their commitment to reduce CO2 levels while they increase theirs, which will further diminish competitive advantage. Canadian socialist politician Tommy Douglas once said, “The trouble with socialists is that they let their bleeding hearts go to their bloody heads.” No doubt this includes trying to make unequal things equal.