Posted on 06/29/2009 5:23:41 AM PDT by 1rudeboy
Regardless of the scientific merit behind doomsday predictions of global warming, President Obama and Congress seem intent on instituting a U.S. policy regime to address the specter of climate change. The debate on the most effective way to "green" America--cap-and-trade, carbon taxes, tough energy standards and regulations, some hybrid approach, or sticking to open markets--will be a heated one. With affordable green technologies still in development, policymakers need to recognize that the economic cost of limiting U.S. production of greenhouse gases on U.S. consumers and companies will be high--high enough to question whether the costs are worth the equally uncertain benefits such measures would bring. Costs and Benefits The projected cost of a climate scheme on the U.S. economy--evidenced from Europe's problematic climate program and the Kyoto Protocol's failure to affect emissions in signatory nations--illustrate how difficult it is for governments to impose binding climate restrictions without undermining economic growth.[1] If Congress and the President do embark on such a potentially treacherous course, households and firms will face much higher costs for energy and energy-intensive goods, categories that include virtually every product in our economy. Hard-pressed U.S. consumers and producers will find no relief from artificially inflated prices by turning to lower-cost imports, as the climate change zealots propose to erect trade barriers to raise the costs of foreign products produced under less severe environmental policy constraints. Some U.S. companies and policymakers may find it fair for the government to prop up domestic businesses, whose profitability will have been destroyed by new climate change regulations, against foreign competitors whose governments have chosen to be less draconian. America's trade partners are unlikely to agree. Many such trade restrictions could violate World Trade Organization (WTO) rules and lead to legal sanctions against the U.S. Even if some of the proposed measures hold up against legal scrutiny in the WTO, the potential for nations to retaliate against U.S. trade measures is very real. Any U.S. restrictions, whether consistent with WTO agreements or not, would undermine development in poorer countries and make it more difficult to achieve a multilateral consensus on the rules of trade that best support environmental objectives. When all these negative effects are taken into account, it is clear that the adoption of protectionist polices as a part of a U.S. climate regime does far more harm than good and should be avoided. Climate Legislation and Trade With little substantive progress in establishing a consensus on global climate policy and developing countries (especially India and China) unwilling to adopt greenhouse gas restrictions that will undermine their economic development, U.S. policymakers are faced with the possibility that companies facing higher costs under unilateral climate restrictions will find it much harder to compete with foreign competitors with lower business costs. Consequently, American firms may fail or may take their jobs and flee to countries with less costly business environments. While such productivity-boosting moves are good for the U.S. economy in the long run, they can impose short-term costs on specific firms and individuals and are a political lightening rod. Unfortunately for those who would attempt to control global climate, such measures also undermine any impact U.S. greenhouse gas restrictions might have on reducing global levels of emissions. For the advocates of climate change legislation, trade-related measures can potentially counteract the loss of competitiveness that such environmental regulations impose on U.S. businesses and, in theory, compel other countries to adopt similar climate regimes. Tax credits, subsidies, government loan guarantees, and other policy mechanisms designed to compensate partially for the cost of carbon controls on U.S. firms would then work hand in hand with more explicit tariffs or quotas on imports from countries without comparable environmental restrictions. The idea that punitive trade measures against carbon-intensive products would motivate countries to implement carbon restrictions depends on the ability to measure carbon intensity in imports and on the level of trade that would be affected by U.S. policy. Countries may not export enough carbon-intensive products to the U.S. for trade measures to drive nations to adopt carbon restrictions. More problematic, because production processes, energy sources, and capital stock vary by country, industry, and even by product, the information needed to accurately tax imports for carbon content would be very difficult to obtain.[2] Therefore, the most likely result is the imposition of a more bureaucratically feasible one-size-fits-all approach to taxing carbon-intensive products at the border. Unfortunately, such an approach has the perverse effect of penalizing clean foreign producers, who may have higher costs, at the expense of dirtier ones while reducing the incentive to better internalize the cost of carbon in traded goods. Moreover, energy standards and regulations may run up against trade rules that dictate that domestic and foreign firms should be treated identically and may create technical barriers to trade disallowed under WTO agreements. Punitive trade measures, direct subsidies, tax credits, government loans, and other government support programs could violate WTO rules against subsidies and countervailing duties.[3] Trade measures that treat countries differently undermine the non-discriminatory basis for global trade that has helped promote prosperity around the world. The gains from trade include economic growth and rising incomes in all countries. For developing countries--which would likely be hardest hit by trade restrictions in climate legislation--the economic stress will be particularly great. This, perversely, will likely increase the harm done to the environment: Economic growth increases the ability for developing countries to afford protecting the environment. Historically, as a nation's prosperity increases, its desire--and more importantly, the resources available--to adopt environmental protections become stronger and result in policies that accommodate the individual needs of the country. Engaging in freer trade can better promote the evolution of good regulations by empowering countries with the economic opportunity to develop and raise living standards. Markets Work, Protectionism Doesn't Trade measures in carbon-control legislation may appear necessary for protecting U.S. competitiveness and promoting broader international participation in such schemes. However, in reality, such measures will likely create a more hostile trade environment that costs U.S. firms access to global markets. Even if countries do not file complaints within the WTO or resort to outright retaliation against America for raising trade barriers, protectionism cannot guarantee a cleaner environment. Current efforts to find a multilateral consensus within the WTO on lowering trade and non-tariff barriers against trade in clean technologies will be more difficult as climate-related trade disputes rise. Worst of all, the general contraction in trade that protectionism would induce will only make developing countries poorer and less willing and able to address environmental concerns. Rather than using trade policy as a weapon, America should keep markets open. Policymakers--regardless of the shape of any final climate bill--should maintain the integrity and freedom of global markets as a means to transfer clean technologies, keep international investment flowing, and promote economic growth and prosperity in the U.S. and around the world. Daniella Markheim is Jay Van Andel Senior Trade Policy Analyst in the Center for International Trade and Economics at The Heritage Foundation. [1]William W. Beach, David W. Kreutzer, Ben Lieberman, and Nicolas D. Loris, "The Economic Costs of the Lieberman-Warner Climate Change Legislation," Heritage Foundation Center for Data Analysis Report No. 08-02, May 12, 2008, at http://www.heritage.org/Research/Energyand [2]Trevor Houser, Rob Bradley, Britt Childs, Jacob Werksman, and Robert Heilmayr, Leveling the Carbon Playing Field: International Competition and U.S. Climate Policy Design (Washington, D.C.: Peterson Institute for International Economics, 2008), p. 34. [3]Alina Syunkova, "WTO--Compatibility of Four Categories of U.S. Climate Change," National Foreign Trade Council, December 2007, at http://www.nftc.org/default/trade/WTO/Climate%20Change%20Paper.pdf (April 21, 2009). |
If people want to risk paying 99 cents for the cheap ones, how do you propose to stop them?
I'm not surprised at all that people have showed up to blame "free trade" for Cap & Trade.
Essential to that argument is failure to read the piece.
Willie Green in 2000: "There will be a recession."
yadda, yadda, yadda...
Willie Green in 2009: "I told you so."
Yep, in 8 short years we went from a GOP controlled House, Senate and WH to a government completely dominated by marxists.
Can't say I didn't try to warn you.
Speaking of the ‘environment’
http://www.freerepublic.com/focus/f-news/2281806/posts
The following article was also sent out by NAFBPO.
(excerpt)
The deep US recession has had one effect that polls say would please most Americans: Illegal immigration is falling.
More illegal immigrants are leaving. Fewer people are sneaking in perhaps 200,000 a year instead of 500,000 in recent years.....
.....It also weakens the argument of pro-immigration forces that there are some jobs Americans wont do. Mr. Camarota finds that claim absurd on its face.
He points to a newly available sampling of 4.7 million workers in 465 occupations, a massive survey that asks respondents whether they were born in the US. The US-born already hold a clear majority of jobs people often regard as being left to immigrants, such as housekeeping and grounds-maintenance workers. Only in picking fresh produce do immigrants hold a small majority.
Politics plays a huge role.....some 1 million immigrants become US citizens every year. About 300,000 more of them become Democrats than Republicans.
That advantage could be one reason that House Speaker Nancy Pelosi, a Democrat, has blocked several immigration-control bills from coming to the floor.....
Similarly, Senate majority leader Harry Reid (D) of Nevada has been aggressively pushing amnesty for illegal immigrants......
Critics sometimes call various forms of amnesty a Democratic registration program.
The third component of the debate the demographics is vital in the long run. In the 1990s, the US had its biggest 10-year jump in population in its history 32.7 million and the fastest growth rate since the 1960s.
*****Thats the elephant in the room, Mr. Beck says. If President Obama really wants to reach his goals of energy independence and lower carbon emissions, he will have to restrain immigration, he argues.....Otherwise, the projected population rise from 307 million today to 439 million in 2050 will swamp his intentions and heighten other challenges, such as congestion and education.
Meanwhile, a multimillion-dollar fundraising battle has broken out between pro-amnesty and antiamnesty groups.
It will, warns Stein, be vitriolic, vicious.
“So, lets see . . . you dont read the thread, and spam the same response youve been spamming for years. What should that indicate to an impartial observer?”
Are you referring to yourself? ROFLMAO!
rudeboy, quoting Regan is irrelevant. We’re not talking about protectionism, and you know it. These are NOT free trade agreements...they are cheap labor agreements. Don’t you think you’ve gloried in the extremes they contain to finally give it up? For all the talk about how you love this mess, it sure has done us all a lot of good! NOT
Who is "we?" Ms. Markheim talks about it quite specifically. I take it you didn't read the piece either?
The US gradually lost that edge and by the late 70s had significantly lost competitive edge in autos(to Japan)
BTW, the Japanese automakers had some help entering the US market.
We shouldn't forget that all this happened during the Cold War when it was in our national security interest to provide Japan with our best manufacturing technology. Unfortunately, when the Cold War ended, a series of short-sighted administrations found it profitable to vastly expand this policy to the detriment of the American people. So now, we have a Marxist in the White House instead of in the Kremlin.
God, you are stupid. You don't even know what "spam" means.
Stay strong, Willie. You’re right on this. I’m sick and going back to bed.:<)
Deadheads: Free Trade, Globalism and the Grateful Dead
http://www.freerepublic.com/~auntb/
“God, you are stupid. You don’t even know what “spam” means.”
What Spam??? Again, you make NO sense.
Ah...there it is! When you lose the argument...ATTACK!
You are about as conservative as the snake in my yard.
Don’t post to me again. You have wasted enough of this country and my time.
What a clown parade.
I'll make you a deal. Don't post on one of my threads unless you can establish you've read the article at the top. Otherwise, take your lumps.
Sorry, you told me to ‘get lost’ - remember?
That was on the thread where you were trolling me. This is a different thread. Can you answer the question, or not? It’s pretty basic to the discussion, but it might be over your head.
LOL... kind of like the knee jerk reaction to the word Globalization mixing it up or not understanding the difference with Globalism- personal pet peeve.
BTW, great article, it is pretty apparent that folks didn’t read past the headline and just assumed through their own personal filters.
The end result is we'll have a few high paid union workers - the rest of us will be eating dirt. (See Auto Industry Workers Pay Scale -for starters.)
The bottom line is .gov will be making decisions which workers will be protected and who will be thrown to the dogs.
The whole article reveals that the Heritage Foundation is a false flag - Trojan Horse operation.
I'm stilling laughing at the article you posted in the past where the Heritage folks said "if Unions knew how wonderful free trade was ... they'd fully support it" AGAIN, just paraphrasing it.
And the article by tenured professors where they stated we should be building cell phone towers and doing Lasik surgery on each other.
That's almost as funny as the Hitler Nigerian email video.
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