First Healthcare, now another massive program in the works: “Cap and Trade”


In THE ECONOMIST magazine of March 27, a small segment covered the complexities of the Cap and Trade program already operating in some countries and it indicated how difficult it is to keep such a program operating in an efficient, honest manner…

And the Cap and Trade bill in Congress currently being  considered in this country for passage into law is a closer-to-home example of what a complex undertaking such a program will be…  Its stated purpose is to create the American component of a worldwide system intended to lower the amount of air pollution released by American industries into the atmosphere — and thus, supposedly, the danger of the earth becoming warmer will be reduced…  This air pollution is released into the air when petroleum and coal, for example, are burned in running machinery in an industrial/manufacturing plant, or in producing electricity.

But what is Cap and Trade?  Frankly, the details have not been made evident by those working on the plan, but some generalities about what the program involves might be deduced…

Cap:  refers to the maximum amount of tonnage per year of pollution a company will be allowed(by the government) to release into the air while producing whatever product a particular company might produce…  For example, if in one year the company produces more air pollution than the government says it should, the company will be fined a set amount for each ton of pollution over its allowed limit…

Trade:  the system that is to be set up (by the government, in coordination with other governments) so that a particular company can trade to another one, anywhere in the world, any credits it does not use. One credit could be equal to one ton of air pollution, for instance… More on Credits to follow…

Credits:  the government might “give” each company (of whatever size Congress decides) a set number of credits per year — for example, if the government assigned  the BoyoBoy Corporation 10 credits, that company must not produce more than 10 tons of pollution per year…  If it produces more pollution than its quota (for example, 15 tons), it would be fined for being over its quota…  If this company, though, only produced 5 tons of pollution (5 credits, for example), the company could sell its left over 5 credits (that it had been allocated but not used), to another company or country so that another company that had polluted more than the amount it had been assigned, would not have to pay a fine for being over its quota…

This potential program currently in the works would be a massive, massive undertaking and it seems its passage would lead to more domestic government, as well as foreign government intrusion into this country’s economic system, and would need another enormous bureacracy to oversee it.

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