Consequences of EPA declaring CO2 a pollutant, and subsequent cap-and-trade regulations from Congress, include reduced competitiveness by U.S. companies leading to reduced profits and more business failures. Despite rosy projections by some, including California's Air Resources Board, that jobs will be created by panic-motivated CO2 and other greenhouse gas regulations, the reality is that jobs will be lost, not created. The economic models that were used to evaluate California's AB 32 were seriously flawed, as several independent expert reviewers found and reported to ARB.
Such business failures will greatly reduce stock prices, and the savings plans of millions of Americans either in retirement, or about to retire.
The result will be many millions of very angry retirees, or wanna-be-retirees, who are forced to keep working into their golden years when they would prefer to be retired. The politicians will feel their wrath at the polls. This cuts across all political boundaries, from Democrat to Republican to Independent, and all others. Younger voters, also out of work thanks to CO2 reduction legislation, will also vote to turn out the rascals who pushed through this horribly mis-guided legislation.
When the stock market's Dow Jones index is at 2000 because of idiotic regulations to "protect" us from a "dangerous pollutant" known as CO2, workers who have pension plans, 401k plans, and other life savings plans with investments in the stock market will be plenty unhappy. Bonds will fare no better, as a bankrupt company cannot pay its bonds. Those bonds will be worthless.
Furthermore, as the unemployment increases, tax revenues decrease into both the state and federal treasuries. Even more massive budget deficits will result, such that California's $42 billion last year, and this year's $23 billion will look like pocket change.
Count on it.
Roger E. Sowell, Esq.
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