A main part of President Obama’s plan for America was the passing of “cap and trade,” an effort to change the way Americans use energy. That plan died this week when Senate Majority Leader Harry Reid announced that they were not able to get the 60 votes needed to pass even a smaller version of the original plan. There is some thought that the White House may try to get these provisions in under the Clean Air Act and the Environmental Protection Agency. Those in support of the bill believe that charging companies more to use coal and oil would encourage research into cleaner types of energy, while opponents believe that those costs would be passed along to consumers and continue to hurt the economy. China is currently the foremost consumer of energy in the world, and they refuse to cap their emissions. There is fear that if the US puts in “cap and trade,” US manufacturers would be at a disadvantage in the world economy. Currently, the EPA is in charge of setting limits on greenhouse gasses, but that is opposed by Republicans and even some Democrats. Not knowing what direction this will take the country affects companies who are investing in wind and solar energy. But, solar energy is growing at the rate of about 40% a year and that is expected to continue.
While it would be helpful for the US to invest in developing other forms of energy, besides oil and coal, raising taxes on businesses at this point could be very dangerous. It could affect how many workers are hired at a time when our employment rate is high. And if the tax increases are passed onto consumers, it will have a ripple effect.
Power, Stephen. “Senate Halts Effort to Cap CO2 Emissions.” The Wall Street Journal. 23 July 2010.
While I agree that investing in alternate forms of energy could be more expensive, I believe it is essential. The longterm effects of continuing to use energy sources such as coal and oil are detrimental. The United States emits an equal amount of carbon emissions as China, but our population is 1/5 the size of China. This shows that we must take action to find alternate energy sources. The oil spill in the Gulf should act as a wake up call of the potential harm that results from using these energy sources. I believe the benefits and necessity of finding alternate energy sources outweighs the economic impact.
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