Major carbon trading company going out of business
Let’s recall what carbon trading means. Governments, or a single global government,—either way we’ll call it the Global Climate Regime—would place limits on the amount of carbon emissions that every industrial concern in the world can produce. That’s the “cap” in “cap and trade.” But the Global Climate Regime would place different limits on some industrial concerns—or some countries as a whole—than on others. Politically favored entities would get higher quotas. Entities that have higher quotas, or that do not produce carbon, would have unused carbon “credits,” which they could then sell to entities whose carbon quotas are all used up. Thus, by capping carbon production, the Global Climate Regime instantly produces a vast new form of wealth—carbon credits—and a staggering transfer of wealth from the unfavored entities that produce carbon emissions to the favored entities that don’t. Wealth is also transferred to the newly formed businesses, such as Chicago Climate Exchange, that specialize in trading the carbon credits. It’s not exactly socialism, but a managerial death grip over industry that is even more perverse than socialism.
That’s why you should read Atlas Shrugged, regardless of what you think of Ayn Rand’s philosophy. Rand describes in horrifying and sometimes hilarious detail a fictional America which is not socialist per se, because the government doesn’t own the means of production, but in which the government, by means of such laws as the Anti-Dog-Eat-Dog Act and the Equalization of Opportunity Act, equalizes, and ultimately destroys, all industrial concerns by rewarding the unproductive ones and punishing the productive ones. By some prophetic intuition, Rand understood that America would not opt for government ownership of industry, such as had taken place in Britain at the time she began writing Atlas Shrugged, but rather for a crushing egalitarian government control of industry, such as we see in Obamacare.
Global warming-inspired cap and trade has been one of the most stridently debated public policy controversies of the past 15 years. But it is dying a quiet death. In a little reported move, the Chicago Climate Exchange (CCX) announced on Oct. 21 that it will be ending carbon trading—the only purpose for which it was founded—this year.
Posted by Lawrence Auster at November 08, 2010 10:05 AM | Send