Monday, June 15, 2009

Cap and Trade: YOU, not someone else, are going to pay more, period.

Here is what this Common Sense Curmudgeon has been thinking about this weekend:

Let's think about cap and trade. Start at the bottom - the oil companies get hit with higher costs, so who do they pass that onto? Fuel companies get hit with higher costs on top of that and put the excess onto whom? Trucking companies who bring goods to stores charge more because their fuels are costing more, and that goes onto whom? Stores pay more for their goods to be delivered so the cost increases to protect their profits. Who is going to pay for that? YOU are.

It's pretty simple and easy to think through once you open your mind and think about everything that is going to increase in price for the consumer. Is every company going to absorb their own increases and take lower profits and/or pay their workers less, cut their benefits? Highly doubtful, don't you think? Who would want to do that? Would you want that to happen to you? Are you willing to pay this price for less carbon dioxide in the air?

So YOU are going to pay for it and if you can't figure that out yourself, take a look at the issue yourself and see if you see things differently. Even if you are the most dedicated environmentalist, friend of the earth and all of its creatures, cap and trade will not work because, in the end, most Congresspeople will not vote for something that will damage their state's economy or raise voter costs even if some believe that they can pin the increases on the old tried and true "business did it," it was someone other than us. So, while the politicians may pass something by the end of summer (50-50 chance), it will do nothing for the environment but it will cost most of us thousands in increased consumer costs per year. But I don't think you need someone else to tell you what is going to be happening over the next few years and beyond...but I will...prices are going to rise and rise and rise with little or no reduction in greenhouse gases.

Oh, and I have mentioned this ad nauseum: Wall Street, big business, and some environmentalists will all get rich on this post-mortgage, environmental-ponzi scheme. Remember, my friends on this blog have been telling you these things for months. Soon we will know, unless we tell our Congresspeople to kill this stupid idea while there is till time and the majority of Americans still have jobs and can afford groceries!

1 comment:

  1. When you say YOU are going to pay, do you mean me, or do you mean YOU? Plenty of people stand to benefit from cap and trade. Who wins if we don't promote cap and trade? People like YOU who are getting rich by promoting the status quo.

    "Wall Street, Big Business and some environmentalists will all get rich on this post-mortgage scheme, environmental- ponzi scheme."
    This statement shows not only a lack of economic expertise, but is a blatant sign of YOUr highly flexible morals. Are YOU really that concerned with my economic prosperity? I guess YOU would prefer the economic recession: falling stock prices, failing businesses, and poor U.S. citizens. I suppose because YOU already made your fortune from, as YOU call it, the "mortgage scheme," YOU have no need to support any economic initiative that might actually help the little guy?

    In case YOU forgot, YOU were a big proponent of the "mortgage scheme". Here is a quote from 2005 I found on (I suggest everyone check it out in all it's glory at the link below):

    8/25/2005: Buying a Home Is a Smart Long-term Investment

    One reason home prices rose is because stock prices fell. “When the stock market crashed five years ago, housing became an even better investment,” says Glenn Dorfman, chief operating officer for the Minnesota Association of Realtors. “When people lost their shorts and got frightened, they took the money they had been investing in the market and started buying houses because interest rates were so low. That placed greater demand on housing and sent prices up.”
    Even if mortgage rates inch higher, prices should continue their upward trend. “As interest rates rise,” says Glenn Dorfman, “home values are likely to return to their normal levels of increase, which is about 3 percent a year in Minnesota. The central cities—like Rochester, St. Cloud and Duluth—will outperform small towns because wages are rising faster in greater Minnesota than they are in the Twin Cities. The regional centers—like Brainerd, Grand Rapids and Alexandria—will also do well because those are the places many baby boomers are choosing to retire to.” ...

    From a tax standpoint, there are three good reasons why now is a good time to buy a home. “The capital gains exclusion for the sale of principal residences makes real estate a fabulous long-term investment,” says Dorfman. “Under this law, which Congress passed in 1997, if you purchase a home and live it for at least two years, you can keep the capital gains when you sell it, tax-free, up to a maximum of $500,000 for married couples and $250,000 for singles. No other asset is treated that way.”

    Wow. I mean wow. Sound economic advice. Clearly YOU know what YOU're talking about. Of course, we know what happened after that. In case YOU forgot, check out the link at the bottom of the post. (HINT: It wasn't pretty. I bet YOU're doing OK though.)

    I just wonder sometimes whether people like YOU, who say these irresponsible things when people consider YOU an expert in your field, ever even consider the damage these ignorant and divisive statements cause. I get that YOU don't want to lose YOUr money. I draw the line when all your money comes from manipulating--no, straight out lying--to the public under the guise of someone trying to give good advice.

    Please, stop trying to screw people over, go read some books, and keep your crappy advice to yourself. YOU should be ashamed.

    "Opportunity''s Still Knocking"
    Buying a Home Is a Smart Long-term Investment


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