Yarmuth Wrong Again
Upon reading Congressman Yarmuth’s (D KY) letter in the Friday July 3rd Courier Journal two things are apparent. The first is that Mr. Yarmuth has no clue as to the economics of the American Clean Energy and Security Act that he so proudly touts. Likewise, he appears to have no clue as to the economics involved in “shipping American jobs overseas”.
It is acts like the American Clean Energy and Security Act that cause the loss of jobs not the creation of jobs. This act is nothing more than a stealth tax on all of the American people. The Congressional Budget Office estimates that the direct cost of this bill will be $175 for each American. That translates to $700 for a family of four. This cost pretty well wipes out President Obama’s short-lived and unwise “Making Work Pay” credit, which is actually a reduction in Social Security and Medicare taxes withheld from pay checks, two programs already teetering on the brink of bankruptcy.
The Congressional Budget Office estimate does not include the additional cost that will be passed on to consumers as the cost of all energy goes up. Everything produced or consumed in America will increase in price. It will cost more to make products, to transport products and to provide services. This increase in cost will largely go to the government, thus the stealth tax increase I mentioned above.
The cost of state and local government will also increase as energy costs increase across the board. This will necessitate increases in state and local taxes and fees for services.
As to the economics of “shipping American jobs overseas”, as costs increase companies generally have two choices. First, pass along the increased cost of operations to the consumer. Or second, find a way to decrease cost. The cheaper environment overseas (where labor costs less and cap and trade is not a consideration) makes exporting manufacturing operations attractive in order for businesses to be more competitive, not only here but around the world.
This bill will make American companies, primarily manufacturing, less competitive worldwide. The net effect will be a decrease in American jobs as companies seek lower-cost environments to produce their products.
Mr. Yarmuth seeks to control our economy. It appears to me that government control over our economy is what has put us in the position we are in today. More government control is only going to make us less competitive and cost jobs as operating costs for businesses continue to spiral upwards.
Our only hope is that this legislation can be killed in the U.S. Senate. It is your responsibility to contact your Senator and voice your opposition to stealth taxes and the long-term exporting of American jobs to lower-cost environments.
How can we expect businesses to grow and start to hire here at home if congress is continually telling businesses “We are going to make it more expensive for you to operate”. Whether the increase in cost is through Cap and Trade or Health Care Reform, these bills will lead to less employment rather than more. Businesses will be forced to decrease the work force and increase the prices they charge the consumer to counter the increased cost of operations.
It is time to let Mr. Yarmuth know that we want a representative who supports what is good for America not what is good for a particular party’s agenda.
Brooks Wicker
Louisville, KY 40207
