Tuesday, July 7, 2009

Obama's Energy Legislation - Socialistic?

H. R. 2454 To create clean energy jobs, achieve energy independence, reduce global warming pollution and transition to a clean energy economy

Cap and Trade is a component of Obama’s proposed energy legislation. In a nutshell: The overarching idea behind the legislation is to limit the amount of greenhouse gasses released into our atmosphere. Companies would be limited to a certain output of greenhouse gases, and if they produce more than their limit they will have to purchase offsets from another company that produces less.

My opinion is that this is a ridiculous idea because it will end up costing the American consumer. Why? Companies that have to purchase offsets will simply pass along that cost to us, in the form of higher prices. That’s what companies do when their cost of production increases. And no matter how horrible greenhouse gases supposedly are, this is NOT the time to be unnecessarily raising prices on anything!

But is Cap and Trade a socialistic policy? Not really. Take a look at the definition of Socialism in my blog entry below. In this legislation, there is no proposal of communal ownership of the production and distribution of goods. The idea of equity and fairness is there, but that alone does not qualify Cap and Trade as socialistic.

Cap and Trade = NOT socialistic. Not a good idea, but NOT socialistic.

This bill has passed the US House and is now being worked on in the US Senate. To express your support or opposition to this bill, contact your state’s senators.


If you want to read some interesting stuff about the Cap and Trade legislation, check out these entries on Jamie Dupree’s blog. Jamie Dupree is a full time Washington correspondent and is one of the most politically neutral reporters out there, in my opinion.