Includes a discussion of Mark to Market and other fascinating material on the road into our current economic crisis.
Allan R. Bevere discusses the recent report of the bipartisan commission on the deficit. The new is not good, but it is also not surprising.
In Preserving Democracy, chapter 2, “Taxes and the Welfare State” discusses spending, taxation and the deficit, and these topics are taken up in chapter 10, “The Never Ending Struggle,” where recent massive increases in the deficit are discussed.
That’s not what the post is actually about, but Hot Air discusses a story that Rahm Emmanuel may want out of the White House or alternatively it may be folks from the left wanting to push him out. The reason? Amongst many others, it is believed he would accept a compromise on Cap and Trade that would only apply to utility companies.
An additional problem is that this compromise would benefit some of Emmanuel’s friends back in Chicago. That, in turn, points to one of the great pitfalls of this sort of legislation. How do you tell the difference between a compromise to accomplish the best possible result and one that is simply designed for cronies?
Supporters estimate the cost of Cap and Trade to be between $50 and $300 billion per year327. People would see this tax in the form of higher costs, particularly in higher energy costs, as the whole purpose of the tax is to force people to use less energy, and thus less carbon. A recent study by the Belfer Center for Science and International Affairs at Harvard’s Kennedy School concluded that reducing carbon emissions was “harder than it looks” and that gas prices might need to rise above $7.00 per gallon to achieve the proposed carbon reductions. With the economy already in trouble, even Obama’s Democratic allies were in no mood to impose the massive new carbon taxes. (Preserving Democracy, paperback, pp. 264-265)
… try more government! From Preserving Democracy:
In the chapter on planning and control, I wrote that the failure of government planning normally results in even more government planning. This pretty much summarizes the current financial problems. (p. 259)