1- President Biden & his climate advisors need to come down to earth before gravity brings them down. 2022 is just around the corner!
I studied the unintended consequences of govt regulations & policies long enough to conclude that what we heard today was a disaster in the making
I studied the unintended consequences of govt regulations & policies long enough to conclude that what we heard today was a disaster in the making
2- The history of the oil industry is full of lessons: Democrats proposed the Oil Windfall Profit Tax in the 1970s & President Carter signed it into law in Apr 1980. The govt appropriated the money it thought it would collect, but oil prices collapsed. No windfall profit to tax!
3- Taxing wealth or increasing taxes on capital gains to finance infrastructure and climate change agenda will force foreign investors out of US markets. US investors will move their money overseas. Some might even move out of the US and get another nationality.
4- Taxes collected will be way lower than planned, but the government, as it did in the past, will borrow against it & spend it ahead of time. The result is lower economic growth and higher debt, while infrastructure projects will remain unfinished for lack of revenues.
5- Meanwhile, aggressive climate change policies will force the US oil and gas market to shrink. Companies will focus their activities overseas. Tax revenues for federal, state, and local governments in oil-producing states will decline.
6- Since oil & gas jobs pay more than the jobs in solar and wind industries, income tax revenues will also decrease. However, most jobs in solar and wind are in construction. once a state is done with building what it needs, it is done! Where will workers go?
7- US dependence on oil imports will increase, causing a larger trade gap that will lower the value of the dollar. US imports will become more expensive while America is poorer!
8- So, when tax revenues are shrinking, how will renewable energy projects & #ElectricVehicles be subsidized?
End results: a large number of uncompleted infrastructure projects, a massive increase in government debt, higher unemployment, with no improvement on the climate front!
End results: a large number of uncompleted infrastructure projects, a massive increase in government debt, higher unemployment, with no improvement on the climate front!
9- Luckily, we do not have to go through this. People love their convenient life. 2022 and 2024 elections will be the ultimate test for the excessive climate change policies.
10- China, India, and Brazil have already objected to climate change pressure and will continue to do what they have been doing. But remember this: The dreams of the youth in remote villages in Africa are to live like people in the West. Good luck convincing them otherwise.
11- The irony is: Hollywood stars want to convince Africa's kids to conserve and remain poor to save the planet. While those kids are obsessed with all the luxury life that those stars showed them in various movies. Good luck convincing them otherwise.
12- This simple illustration (simple relative to the original model), shows where climate change policies can go wrong. Politicians do NOT realize the complexity of these issues & their resulting unintended consequences. That is why I love focusing on the unintended consequences 
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