Friday, February 13, 2009

Part II: Government Solutions Cap and Trade—a “Subprime” idea whose time should never come….

Results of the 40 year War on Drugs is just one prominent candle illuminating the plethora of failed big government programs presaging the future results of a mandated Cap &Trade program that looks increasingly likely to be considered by the U.S. Congress this year unless the American people just say “No.”

The United States has some of the world's most punitive drug policies and has led the cheering section for tough "war on drugs" policies worldwide. But a new international study suggests that those policies have been a crashing failure. A World Health Organization survey of 17 countries, conducted by some of the world's leading substance abuse researchers, found that we have the highest rates of marijuana and cocaine use.

Of course, this is just one graphic, more commonly understood government program that is a massive failure at accomplishing its stated goals. For the sake of perspective, the program began in the early 1970’s under President Nixon and has been a government priority ever since, approximately 38 years! Of course, advocates of the program dismiss such empirical data with the same old refrain, “we never had enough money to do the job right.” How many times have we heard this same worn out refrain from the advocates of government programs? Accountability and transparency is not the forte of government. At least when the private market fails, someone pays the piper, the business fails, something happens. When government fails it is always about not having enough money to do the job right!

Maybe we should question the International Energy Agency, an intergovernmental agency acting as an energy policy advisor to 28 member countries. According to their website,, IEA was “founded during the oil crisis of 1973-74” “to co-ordinate measures in time of oil supply emergencies.” How do you think they managed the oil crisis of just 6-12 months ago? Were the member countries informed in time so that there citizenry could adapt or did the gigantic rise in oil prices that shocked us all? The answer requires a little common sense which most Americans have in good supply.

Demand for oil world-wide outstripped supply during good economic times driving prices higher. We all know what happened next. Recession, less demand, lower prices. As of this writing gas prices are rising because we are driving more (due to lower prices) and we are approaching the spring/summer driving season and demand is increasing so price rises gradually in preparation for that demand. No surprises here, just Common American Sense.

Looking back in 40 years (February, 2049), what makes any rational American believe that a Cap and Trade Government program will reduce green house gas emissions with any greater success than the War on Drugs? And think about the cost…it will stagger the imagination even when compared to today’s outrageous bank, insurance company bailouts , stimulus plans, etc.

Given the borrowing binge started by George W. Bush and Congress (remember, he cut taxes, fought two wars, and increased entitlement spending by the more than any President since Lyndon Johnson---with his Prescription Drug Program for Seniors! By charging it to the National Credit Card ---our children and grandchildren pay higher taxes or get less services.) There are no free lunches, despite the best workings of the political propaganda machines on both sides of the isle in Washington.

And it looks like the mountain of debt is about to increase more under the Democrats who vociferously criticized the stark accumulation of the Bush/Republican mountain of debt.

To conclude, I would urge readers to carefully consider whether we really want to add another government bureaucracy, “The Federal Cap and Trade Agency” to our government that will eventually need a “bailout” when the carbon market collapses for reasons one can only imagine.

I can only surmise that a few big investment banks will be in the middle of it when it happens.
Remember, that despite the failings of “market economies,” at their worst, they are better than taxpayer funded government monopolies lacking accountability until it is too late to do anything but play the blame game and get taxpayer funded bailout.. Let’s not fall for it twice.

No comments:

Post a Comment

We welcome your comments about today’s important energy issues.

Please keep in mind that comments will be reviewed before posting. Any comments that include offensive language, personal attacks, or statements that could be interpreted as hatred or harassment will not be posted.

Thank you for helping us keep an informative, thought-provoking site.