The proposed Obama cap and trade bill could cause electrical and natural gas utility rates to double or triple, attendees were told at a recent trade association meeting. Mr. Obama himself said in a radio interview that his cap and trade proposal would cause electrical utility rates to "skyrocket". That word "skyrocket" was his, not mine! He used that exact word -- skyrocket! He also said that consumers would see a dramatic increase in their cost of living! He has indicated that he wants the bill passed by Memorial Day, just two months from now!
Most people have no idea how expensive this bill will be to them. Consider how the cap and trade tax will affect the price of a can of peas like the one shown. I bought some on sale at the grocery store a week ago at a price of 2 cans for $1. Here is how the cap and trade tax will affect not only this can of peas, but everything consumers buy:
- Grocery Stores - The grocery store will have a utility bill that is 2-3 times higher than today. They will be forced to add this cost to every item in the grocery store to compensate for the higher cost. Think for a moment about the electricity used in a modern grocery store. Lights everywhere, freezers that may be one hundred feet long and seven feet tall, refrigerated meat and deli department displays, produce displays that are refrigerated and that spray water to keep the vegetables fresh, a bakery department that has very large ovens that are baking nearly around the clock, and checkout stands with registers and scanners are all huge consumers of electricity. Needless to say, this will add cost to the price of our can of peas.
- Truckers - The hardest hit industry by the cap and trade tax will be the truckers who consume immense amounts of gasoline to transport food to the grocery store. They will almost certainly have to double their shipping rates to compensate for the new tax. This must be added to the price of our can of peas.
- Manufacturers - The company that manufactures the can of peas will be faced with utility rates that are 2-3 times the current cost. The machinery that cleans the peas, cooks them, seals the cans, applies the label, and routes the cans to the boxing and shipping departments will all cost the manufacturer more money to power them. This will add to the cost of our can of peas.
- Farmers - The farmer will also be hit hard by the higher cost of fuel. They don't plant 1 million seeds by hand! The huge machinery that tills the soil, plants the seeds, applies the fertilizer, and harvests the crop will all incur much higher costs due to the cap and trade tax. In addition, many people are surprised to learn the modern fertilizer is made from crude oil and/or natural gas. This fertilizer will also cost significantly more to produce! This higher cost to grow the peas will also add significantly to the price of our can of peas.
- The Can Manufacturer - The company that manufactures the can will incur similar higher costs just as the canning company.
- Inflation on Steroids - Imagine the ripple effect as the doubling or tripling of the cost of energy cascades through the economy, with each ripple adding higher costs. The potential for inflation is mind-boggling to contemplate!
