White House advisor David Axelrod and Sen. Charles Grassley (R-IA) appeared on ABC’s This Week this morning to discuss health care and the carbon cap-control-command-and-trade legislation. Sen. Grassley, ranking Republican on the Senate Finance Committee, was very good on the Waxman-Markey bill. Host George Stephanopolous cited a CBO analysis and supporters’ talking point to argue that the bill did not represent that big of an economic hit. Grassley:
I’ll tell you, earlier this year, we had economists telling us that when you filter all of these increases in energy through every step of the economy, manufacturing a product or whatever services might come, we have come out with about $3,000 for a family of four.
Now I won’t argue $175 versus $3,000 because that’s not the most important issue. You’ve got to look at what is happening to our economy if we put this very strong tax on energy. The people that have been complaining for 10 years about the outsourcing of manufacturing jobs to China are the very same ones pushing cap and trade.
And you’re going to find signs on manufacturing doors, if this bill passes, that says moved — gone to China. So what we have to do is make sure China, the number one emitter of CO2, not the United States, China is. And India right along with them.
We’ve got to have an international agreement so that we have a level playing field for American manufacturing so we don’t outsource any more jobs. This should be done in a way that affects China the same way it affects the United States.
Because if the United States moves ahead by itself, we’re not only going to lose those jobs, but the point is, after 30 or 40 years, we’re going to reduce CO2 by less than 1 percent.
Speaking of the CBO, its economic projects stop at 2020, just as the tougher anti-energy provisions really kick in. Seems like an inadequate effort.
Heritage had other analyses challenging the CBO’s study:
24 June 2009
CBO Grossly Underestimates Cost of Cap and Trade
By David Kreutzer, Ph.D., Karen Campbell, Ph.D., and Nicolas D. Loris
The CBO analysis of Waxman-Markey fails to take into account all the adverse effects that will ripple through the U.S. economy if cap and trade becomes law.
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