The Global Warming Lie Detector
Wednesday, July 1st, 2009 by RLRFrom Common Dreams
By Dean Baker
The House’s passage of the Waxman-Markey bill raises the possibility that the United States will finally do something on global warming. This prospect has the industry hacks screaming at top volume about the horrible fate that awaits the economy. Everyone should know not to take them seriously, as I will explain in a moment.
First, we should acknowledge the obvious: The bill is awful. It gives away permits to greenhouse gas emitters that should instead be auctioned. As a result, money that could be rebated to taxpayers or used to fund the development of clean technologies instead goes to the industries that are the source of the problem.
Second, the use of tradable permits rather than a tax is a rather questionable policy. Permits will almost certainly require more government enforcement bureaucracy than a system of taxes and subsidies. And, incidentally, permits will allow Goldman Sachs and our other Wall Street friends to make tens of billions of dollars on trading fees in the coming decades, a high priority for all Americans.
But a bad bill is almost certainly better than no bill. If Waxman-Markey doesn’t get through, it is very difficult to see another bill getting through this Congress. And there is no reason to believe that the Congress that gets elected in 2010 will be any less indebted to the corporate lobbyists.
The Waxman-Markey bill should be viewed as a foot in the door. It is a modest first step toward reducing greenhouse gas emissions that both demonstrates a commitment and provides an opportunity to show the public that emissions can be lowered without imposing an enormous economic burden on the country.
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