Tuesday, July 21, 2009

Cap and Trade H.R. 2454

The "cap and Trade bill" is a disaster. It is an example of what not to do in economics: burdening the cost of consumption and raising costs of production will only result in a disaster, Less productivity at a higher cost to everyone. this is a graph showing the effects on the cost of energy.

The correct or better alternative would be to create a national solar power station infrastructure:

1) there is no cost burden because the gov't will make money by selling the electricity produced back into the power plant grids.

2) Green house gases are reduced at a much greater pace without burdening or slowing the growth of the energy industry.

3) places like california and new york wiould have an increased electricial capacity allowing firms to focus on the infrastructure problems with grids.

4) If the gov't needs funding these plants would be extremely valuable and easily sold to private firms.

5) The Average cost of electricity decreases for all consumers.There ya go, a correct solution to an energy problem. Not perfect but better. here is an Illustration of what this does to energy markets.

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