Cap and Degrade
Monday, July 6th, 2009Cap and Trade Invites Corruption and Wasteful Spending
1. Politicians Handpick Handout Recipients
Eighty-five percent of the carbon permits will not be auctioned. They will be given to specific (politically connected) companies instead, at the discretion of government officials. Who is already slated to receive handouts? General Electric (with the CEO on Obama’s advisory counsel), AIG, and of course Government Motors. Smaller businesses will be among those fighting for the scraps and having to pay for permits.
2. Funding for Non-existent Programs and Ambiguous Causes
Example: Under the Cap and Trade legislation, US funding will be used to “build capacity to reduce deforestation in developing countries experiencing deforestation, including preparing developing countries to participate in international markets for international offset credits for reduced emissions from deforestation.” Give me a break. International offset markets don’t exist yet, nor do they even appear feasible at this point. How can we prepare developing countries to participate in a market with unknown structure and incomprehensible dynamics? And the “capacity” to reduce deforestation is so ill-defined that huge sums of money will inevitably be spent on nothing at all. Kind of like Obama’s economic stimulus package.
3. Taxpayers Sow, Lobbyists Reap
The farm lobby will be rewarded for practices that do not reduce greenhouse gases, such as no-till planting. One peer reviewed study shows that no-till does nothing to reduce carbon emissions in some soils; another peer reviewed study shows that this method actually increases nitrous oxide emissions, a more harmful greenhouse gas. But it is known that no-till makes weed control much more difficult. This is great news for the lobbyists of Monsanto (manufacturers of RoundUp and other herbicides), who have been especially aggressive throughout the drafting of this bill. In addition, agricultural businesses that are exempt from cap-and-trade regulations will still be given permits to sell. How much do you think Waxman received from the farm lobby to overlook this non sequitur?
4. Freebies for Fraudsters
Corrupt gangs of “community organizers” like ACORN will be eligible to receive billions in funding through cap and trade (despite their long history of fraud). The bill “authorizes the Secretary [of Energy] to make grants to community development organizations to provide financing to businesses and projects that improve energy efficiency.” Such projects will probably enlist overpaid ACORN “consultants” to walk around and ask businesses to turn down their AC.




