The IUSB Vision Weblog

The way to crush the middle class is to grind them between the millstones of taxation and inflation. – Vladimir Lenin

Leftist Brookings Institution: “Cap & Trade” will cost trillions – UPDATED!

Posted by iusbvision on June 25, 2009


Via Heritage Foundation:

Brookings: Cap and Trade Will Cost Jobs and GDP

The Brookings Institution released their own analysis of analysis on the costs of cap and trade yesterday. Unlike Heritage’s recent Center for Data Analysis study, the Brookings effort does not analyze any particular bill, but does look at the economic costs of four policy scenarios. Their conclusions:

Welfare effects

  • Loss in Personal Consumption of $1 to $2 trillion present value
  • Incremental stringency produces high incremental cost, e.g. extra 8 % reduction increases costs 45%
  • US GDP in 2050 lower by 2.5%

Employment effect

  • -0.5% at peak in first decade

This Brookings study confirms what the EPA, IPCC, RFF, MIT, and The Heritage Foundation have all already reported: carbon cap and trade is a jobs and GDP killer.

Total bill looks like 9 Trillion according to some estimates. Brookings is a leftist/Democrat think tank.


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