Comments on: Cap And Trade: Global Warming Solution Or Wall Street Profiteering? http://weakonomics.com/2009/11/04/cap-and-trade-global-warming-solution-or-wall-street-profiteering/ Everything That's Wrong With You And Your Money Tue, 16 Mar 2010 16:29:38 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: Neil http://weakonomics.com/2009/11/04/cap-and-trade-global-warming-solution-or-wall-street-profiteering/comment-page-1/#comment-3196 Neil Thu, 05 Nov 2009 12:50:57 +0000 http://weakonomics.com/?p=3311#comment-3196 Hi Market economics is going to sort out the problem with too much carbon in the very near future. Once the world economy recovers the price of oil will go back to a level where sustainable energy has a chance to compete. .-= Neil´s last blog ..<a href="http://debtadvice4free.com/2009/06/27/the-elusion-of-financial-freedom-that-debt-can-bring/" rel="nofollow">The Elusion of Financial Freedom That Debt Can Bring</a> =-. Hi

Market economics is going to sort out the problem with too much carbon in the very near future. Once the world economy recovers the price of oil will go back to a level where sustainable energy has a chance to compete.
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]]> By: Financial Samurai http://weakonomics.com/2009/11/04/cap-and-trade-global-warming-solution-or-wall-street-profiteering/comment-page-1/#comment-3195 Financial Samurai Thu, 05 Nov 2009 06:08:41 +0000 http://weakonomics.com/?p=3311#comment-3195 Ah if only $4+ oil can come back again! Those were the good times with noticeably less traffic. I think it's great if we can tax everything bad, so long as I don't have to pay for it. Isn't that what everybody thinks? .-= Financial Samurai´s last blog ..<a href="http://feedproxy.google.com/~r/FinancialSamurai/~3/y3ROmTJP0ek/" rel="nofollow">The Samurai Mask: An Interview With The CEO of BULLDOG Gin</a> =-. Ah if only $4+ oil can come back again! Those were the good times with noticeably less traffic.

I think it’s great if we can tax everything bad, so long as I don’t have to pay for it. Isn’t that what everybody thinks?
Financial Samurai´s last blog ..The Samurai Mask: An Interview With The CEO of BULLDOG Gin My ComLuv Profile

]]> By: the weakonomist http://weakonomics.com/2009/11/04/cap-and-trade-global-warming-solution-or-wall-street-profiteering/comment-page-1/#comment-3194 the weakonomist Thu, 05 Nov 2009 03:57:51 +0000 http://weakonomics.com/?p=3311#comment-3194 Journey, this wasn't meant to endorse protectionism, merely outline the idea behind the plan for a tariff. Politically speaking, this would be interpreted as protectionism, but I'm neither endorsing nor advising against it. Journey, this wasn’t meant to endorse protectionism, merely outline the idea behind the plan for a tariff. Politically speaking, this would be interpreted as protectionism, but I’m neither endorsing nor advising against it.

]]> By: Evan http://weakonomics.com/2009/11/04/cap-and-trade-global-warming-solution-or-wall-street-profiteering/comment-page-1/#comment-3193 Evan Wed, 04 Nov 2009 19:23:00 +0000 http://weakonomics.com/?p=3311#comment-3193 "We can’t force China to tax their citizens, but we can tax China. They are reliant on exports to those fat capitalists in America, so we keep American products competitive by placing hefty tariffs on imports to the States." From your year or so of writing I'd be shocked if you were for protectionism? .-= Evan´s last blog ..<a href="http://feedproxy.google.com/~r/myjourneytomillions/feed/~3/N7bLedDMunY/" rel="nofollow">How Much Interest do I pay to Financing Companies and Banks? TOO MUCH!</a> =-. “We can’t force China to tax their citizens, but we can tax China. They are reliant on exports to those fat capitalists in America, so we keep American products competitive by placing hefty tariffs on imports to the States.”

From your year or so of writing I’d be shocked if you were for protectionism?
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]]> By: Massey http://weakonomics.com/2009/11/04/cap-and-trade-global-warming-solution-or-wall-street-profiteering/comment-page-1/#comment-3192 Massey Wed, 04 Nov 2009 17:36:32 +0000 http://weakonomics.com/?p=3311#comment-3192 Although you make several good points, I think it is naive to assert that the US would be immediately prepared to add a tariff on products made in China and then imported into the U.S. China is seen as the next frontier in consumption. US businesses hoping to sell their products in China would fear retribution from a tariff placed on Chinese goods. The other problem with a Carbon Tax as opposed to a Cap and Trade system is that the tax uses defined incentives (higher prices) to achieve an uncertain outcome (reduced pollution). Alternatively, a Cap and Trade system defines a specific outcome (the amount of pollution allowed) and allows the market to find the correct price. Clearly achieving a definitive outcome is better and using the market to set a price is better. As for the Wall Street profiteering. Yes, that will happen. That's what they do. Although you make several good points, I think it is naive to assert that the US would be immediately prepared to add a tariff on products made in China and then imported into the U.S.

China is seen as the next frontier in consumption. US businesses hoping to sell their products in China would fear retribution from a tariff placed on Chinese goods.

The other problem with a Carbon Tax as opposed to a Cap and Trade system is that the tax uses defined incentives (higher prices) to achieve an uncertain outcome (reduced pollution). Alternatively, a Cap and Trade system defines a specific outcome (the amount of pollution allowed) and allows the market to find the correct price. Clearly achieving a definitive outcome is better and using the market to set a price is better.

As for the Wall Street profiteering. Yes, that will happen. That’s what they do.

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