Should your tax dollars be used to destroy American jobs and subsidize them being relocated to other nations? Sounds crazy, but it’s already happening in England thanks to global warming policies, as this Wall Street Journal column explains. Only politicians and bureaucrats would think this is a good idea:
The Kyoto Protocol of 1997 required signatories to reduce their carbon emissions, and the European Union in 2005 launched its own cap-and-trade system. The program sets a limit on carbon emissions, and companies are issued free carbon allowances that they can buy or sell based on their emissions needs. Fast forward to this month’s news that Corus, Europe’s second-largest steel producer, is shuttering a giant U.K. steelmaking plant at Redcar, cutting 1,700 jobs. …By closing Redcar’s annual capacity of three million tons of steel, Corus will produce six million fewer tons of CO2. That means more carbon allowances, which could translate into about $300 million a year if credits hit $50. Corus is essentially being paid to lay off British workers. …Were Corus to move production to a “clean” Indian factory, it could receive hundreds of millions of dollars annually from the Clean Development Fund. The kicker is that none of this results in fewer carbon emissions. …The Corus story also shows that cap and trade isn’t really a free market. Markets develop to efficiently allocate resources and capital. Carbon cap and trade is a government-rigged market, in which carbon allowances are dispensed based on political influence. Such a system is ripe for manipulation, and Corus is merely the latest example.