Blowing Smoke

Even my eyes glaze over when the discussion turns to "cap and trade." It's simply boring to the nth degree. Here, however is a concise and cogent discussion about what is really going on:

Reality Sets In

The truth emerges when he notes that what occurs is that government creates a commodity literally out of nothing and then legislates it into scarcity. I doubt that Adam Smith could have applied his supply/demand concepts to such a prospect, but that was long ago in a galaxy that no longer exists.

What's the essential?

The Obamaniacs embrace the religion of man-induced global warming. The planet is spiraling out of control into overheat mode because of our exhalations. We emit carbon dioxide in our daily living and that is causing the heating. We must stop such activity or die of hypothermia.

But, can a mere 300 million Americans really have a significant impact on a global environment of about 6 billion? Can our contribution of carbon dioxide be reduced enough to compensate for the unbridled emissions of China, India and the rest of the developing world? One would have to have some degree of doubt.

Regardless, the government says here's the maximum level you can emit in your daily production cycle. That limit applies to the entire nation, so if you wish to spew out a bit more, you can trade for some of the allocation we've given to Joe, over there. Buy some of his allowance then feel free to emit. And, all of you will pay us, your benevolent government, for your allocation as well. Buy from us, then trade amongst yourselves.

So, government created the commodity, carbon dioxide emission privileges. You get to buy what used to be free for the greater societal good of making an inconsequential reduction in total global emissions.

The basic question has a clear and unequivocal answer: Who pays for this?

You do, of course. Every single product you need for life now will have a higher price. As the link to Q & O above points out this is a maximally regressive tax and strikes directly at the heart of President Obama's core constituency. But, of course, they will be too ignorant, stupid and greedy to notice their pockets being picked. They will blame the producers who are first line victims of cap and trade.