Rising energy costs triggered by Cap and Trade will harm low income workers in inner cities

WASHINGTON, D.C — “Under my plan of a cap-and-trade system, electricity rates would necessarily skyrocket” Barack Obama said on the campaign trail in early 2008, noting that utilities would have to spend huge sums to retrofit their operations and the cost would be passed onto consumers.

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As President, Mr. Obama is sticking to his cap-and-trade plan. And that’s particularly bad news for lower-income households. “Cap-and-trade,” an energy tax, is the Obama plan to fight climate change. In a nutshell, he seeks to reduce greenhouse emissions by making fossil fuels such as coal, natural gas and oil more expensive, and therefore less desirable. This costly scheme was approved by the House on a nearly party-line vote and is being pushed in the Senate by John Kerry (D-MA) and Barbara Boxer (D-CA). Taxing fossil fuels might depress their use, but it also would depress the economy. High energy costs would slow economic growth and increase unemployment, already nearing ten percent. Minority workers are being sledge-hammered. The Bureau of Labor Statistics says black unemployment hit 15.4 percent in September while Hispanic unemployment reached 12.7 percent. The Black Chamber of Commerce estimates that cap-and-trade, if adopted, would kill upwards of 2.7 million jobs every year through 2030, while the liberal Brookings Institution says 1.7 million jobs would be lost annually. The conservative Heritage Foundation estimates 1.1 million would be lost every year from 2012 to 2035, and 2.5 million annually after 2035. It is illogical to pursue a job-killing policy at any time, but especially right now in the midst of a prolonged recession, yet cap-and-trade is a White House priority. The burden cap-and-trade would have on manufacturers is no secret. Jim Owens, CEO of the heavy equipment-maker Caterpillar and longtime anti-global warming activist, has warned President Obama about its dangers, saying: “I think if we move unilaterally as the United States with a significant cap-and-trade program that drives up the cost of carbon here significantly, and our international competitors, the countries don't move with us, it's going to create competitive problems… for the manufacturing industry in this country.” Seventy-six percent of black Americans want Congress to make economic recovery, not climate change, its top priority. That’s the finding of a nationwide poll of black Americans conducted for the National Center for Public Policy Research by Wilson Research Strategies. Among other findings:

• Nearly two-fifths of American blacks — 38 percent — believe cap-and-trade job losses would be felt most strongly in their communities. Seven percent believe job losses would fall most on Hispanics and just two percent believe they would most heavily affect whites.
• Some 56 percent of blacks believe lawmakers don’t adequately consider the economic and quality of life concerns of black Americans when formulating climate change policy;
• And 52 percent of blacks aren't willing pay anything extra for gasoline or electricity to reduce greenhouse gas emissions, while 73 percent are unwilling to pay more than 50 cents more for a gallon of gas and 76 percent won’t pay more than $50 more per year for electricity.

Cap-and-trade would exacerbate families’ economic hardships, leading some to become more dependent on government social services. Approximately 35-million Americans already receive food stamps, and food pantries nationwide are struggling to meet increased demand. According to 2008 Census figures, 39.8-million Americans live in poverty, up from 37.3 million in 2007. Poverty rates among blacks, Hispanics, Asians and whites are reported at 24.7 percent, 23.2 percent, 11.8 percent and 8.6 percent, respectively. The last thing those living on the edge need is to have to pay even more for something as essential as energy. Nor do they need Congress passing a bill that will kill jobs. Deneen Borelli is a spokesman for Project 21, an African-American leadership network, sponsored by The National Center for Public Policy Research, a non-partisan conservative think-tank on Capitol Hill. Readers may write her at NCPPR, 501 Capitol Court NE, Washington, DC 20002.

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