Cap and Trade: Polluting is allowed so long you pay the banksters

Kerry and Lieberman want the industry to pay bankers a fee for emitting.  In other words, they want to legalize unlimited pollution.  The results will be an end to industry at the local and regional levels, with massive, worse than ever before emission for anyone who can pay the new tax (Transnational Corporations).  The bill presented in May will also regulate how much energy citizens can use. It will also pursue the same failed green policies Spain is now abandoning.

CNSNews

Senators John Kerry (D-Mass.) and Joe Lieberman (I-Conn.) said they are not worried that their cap-and-trade plan might harm

The Cap-and-Trade scheme is part of the largest transfer of money and resources from the poor and the middle class to the corporate Lords.

fellow Democrats going into the November elections, at a time when voters are more concerned about bread and butter issues such as the economy and the 9.7 percent unemployment rate.

The bill, the American Power Act,  was unveiled in May and would establish a nationwide cap-and-trade system that would regulate the amount of carbon dioxide emitted into the atmosphere. In exchange, the bill would also extend various tax subsidies and credits in an attempt to make renewable energy sources relatively affordable.

Cap and trade basically means that a ceiling, a cap, would be placed on certain carbon-emitting manufacturers who would be allowed to exceed that cap if they purchase carbon credits (trade), the proceeds of which would be invested in alternative energy after the government collected a portion of those proceeds. (Some analysts describe the plan as “cap and tax.”)

CNSNews.com on Tuesday asked Sens. Kerry and Lieberman whether they were concerned that pushing such a low-priority issue so close to an election would reinforce the perception that Congress and its Democratic leaders were out of touch with the American people. (Lieberman, though an Independent, is a former Democrat who now caucuses with the Democrats in Congress.)

Lieberman acknowledged that the public is concerned with fiscal issues: “Deficit, debt is on the minds of the voters,” he said. “The American Power Act has been constructed to be deficit-neutral [and] we’re going to get the CBO analysis later this month or early next month.”

Kerry went on at length, saying that  Americans support many of the provisions in his bill: “When you put the worst arguments characterizing our legislation against the best arguments for energy independence — for jobs, for health, and cleaning up the environment — overwhelmingly Americans land on the side of a comprehensive bill,” said Kerry.

Kerry said that the debate going forward will not be about convincing the public of the veracity of global warming claims, but about trying to redefine cap and trade legislation as something that will benefit the struggling economy.

“Nothing that we do with respect to this bill rides on persuading people ultimately about climate [change],” Kerry said.

“Do Americans want to say no to anywhere from 250,000 to 540,000 jobs a year for the next 10-20 years? I don’t think so,” said Kerry.  “Do Americans want to let China take the lead in solar and wind technologies that we invented? I don’t think so. This is about getting America into the marketplace. This is a $6 trillion market with 6 billion potential users.”

Kerry and Lieberman, in an apparent nod to voters’ fiscal concerns, may have a steep hill to climb in convincing the public that their economic plan will lead to a better economy.

Polls show that Americans are not particularly taken with the issue of global warming, the driving force behind the Kerry-Lieberman effort. A March 2010 Gallup survey, for example, found that 48 percent of Americans thought that global warming claims were exaggerated.

That same survey found that 67 percent of Americans thought that global warming would not pose a serious threat to their well-being in the future.

Polls also have shown that global warming does not rank high on Americans’ list of concerns. An April 2010 Gallup survey found that Americans ranked environmental issues and global warming last when asked which issues they thought were the most important in determining how they will vote in November 2010.

Only 46 percent of Americans said that global warming was either “extremely” or “very” important to their voting decisions. By contrast, 93 percent said the economy was either very or extremely important to their voting choices. In fact, the economy was the only issue of the seven polled that a majority of voters, 53 percent, called extremely important to their voting decision.

Global warming was ranked as extremely important by only 22 percent of respondents.

The same March 2010 Gallup survey that showed skepticism of global warming also found that only 30 percent of the public thought that energy and climate legislation would either probably or definitely help the economy. Among those, only six percent thought federal legislation would definitely help.

Conversely, 48 percent thought that federal climate and energy legislation would either definitely or probably hurt the economy. The percentage of Americans who thought that federal energy legislation would either probably or definitely hurt the economy actually rose from one year ago, the survey found, while the number of people who thought the legislation might be beneficial declined.

US media demands Greek-style austerity for American workers

WSNM

In recent days, the US media—led by the standard bearer of American liberalism, the New York Times—has insisted that workers inseek truth the US, like their brethren in Greece, have been living the good life for far too long and must accept a drastic and permanent reduction in their living standards.

In a May 9 piece, Times columnist Thomas Friedman denounces workers in the US and Western Europe for believing in the “tooth fairy” and expecting government services without paying for them. In America, Friedman says, the baby-boom generation, which supposedly had inherited the prosperity of the post-war years, had “eaten through all that abundance like hungry locusts.”

“After 65 years in which politics in the West was, mostly, about giving things away to voters, it’s now going to be, mostly, about taking things away. Goodbye Tooth Fairy politics, hello Root Canal politics.”

Describing what he has in mind, two days later Friedman wrote about his meeting with Greek Prime Minister George Papandreou in a rooftop restaurant in Athens. Praising Papandreou for defying mass protests, theTimes columnist hails the government for carrying out a “revolution,” including raising the retirement age and slashing wages and pensions for public sector workers, imposing regressive consumption taxes and wiping out two-thirds of the country’s publicly owned companies.

Another May 11 article, appearing on the front page of the Times, is entitled, “In Greek Debt Crisis, Some See Parallels to U.S.” Its author, David Leonhardt, led the newspaper’s campaign to promote Obama’s health care overhaul, explicitly supporting limits on medical treatments ordinary people could receive. (“In truth, rationing is an inescapable part of economic life”).

“It’s easy to look at the protesters and the politicians in Greece—and at the other European countries with huge debts—and wonder why they don’t get it,” Leonhardt writes. “They have been enjoying more generous government benefits than they can afford…

“Yet in the back of your mind comes a nagging question: how different, really, is the United States?… Both countries have a bigger government than they’re paying for. And politicians, spendthrift as some may be, are not the main source of the problem.

We, the people, are.”

It is rich to hear demands for sacrifices and lectures about “the people” living beyond their means, particularly from the likes of Leonhardt and Friedman. The latter, who is paid $50,000 per speaking engagement, is married to the heir of a multi-billion dollar real estate fortune. According to theWashingtonian magazine, the couple owns “a palatial 11,400-square-foot house” in suburban Washington, DC, valued in 2006 at $9.3 million.

In these circles it is taken for granted that massive cuts must be imposed on the living standards of the working class, but not a word is said about the hundreds of billions that are funneled into the personal fortunes of the financial aristocracy and the subordination of the entire economy to increasing their piles of wealth.

The events of the last several years have revealed to the world that the greatest burden on society is not ordinary working people but the anti-social activities of an unproductive and parasitic financial elite. The grotesque consumption and appropriation of social wealth by this oligarchy is not a minor factor in the crisis of the global capitalist system itself.

The bankrupting of whole countries—chiefly through the transferring of the bad debts of the financial speculators onto the books of various governments—is being used to demand austerity from workers and ever-greater riches for the elite.

The four biggest US financial firms—Bank of America, Citigroup, Goldman Sachs and JPMorgan Chase—made money from trading every single day during the first quarter of the year, according to their financial filings. The banks, which all benefited from the Wall Street bailout, reaped hundreds of millions in profits from betting on the movement of currency, commodity and sovereign debt markets, including in relation to Greece.

At the same time, the value of corporate shares has risen, chiefly through a campaign of job cutting, wage and benefit concessions and a staggering 3.8 percent increase in worker productivity in 2009. As a result, corporate CEOs, who took stock options in lieu of pay increases when profits were down, are now cashing in, according to an Associated Press report, entitled, “America’s top CEOs are set for a once-in-a-lifetime pay bonanza.” Yahoo’s Carol Bartz, for example, received a $47.2 million package during her first year on the job, 90 percent of which came from stock awards and options.

While these vast personal fortunes have been made, there has been no recovery in the wages and benefits workers have lost during the recession. The Organization for Economic Co-operation and Development (OECD) reported that real wages fell last year by 2.7 percent in Japan and Ireland, 1.1 per cent in Germany and 0.8 percent in the US.

The unbridled greed of America’s ruling elite—and the complete subservience of the political establishment, from Obama on down, to its needs—can only be compared to the ancien régime in France. The parasitism and extravagance of the aristocracy became a major factor in the country’s breakdown, and ultimately the eruption of the French Revolution in 1789.

Workers must reject the demand for austerity. The working class did not create this crisis and must not pay for it. Instead, the ill-gotten gains of the ruling elite must be confiscated and used to meet the interests of society as a whole, instead of gutting social programs and destroying jobs.

This must include a multi-trillion dollar program of public works to put the unemployed to work—at decent wages and full medical care—to rebuild the cities and suburbs, repair the nation’s infrastructure and provide high quality housing, medical care and education for all.

In the midst of the Great Depression, the founder of the Fourth International, Leon Trotsky, argued in the Transitional Program that it is “impossible to take a single serious step in the struggle against monopolistic despotism and capitalistic anarchy—which supplement one another in their work of destruction—if the commanding posts of the banks are left in the hands of predatory capitalists. In order to create a unified system of investment and credits, along a rational plan corresponding to the interests of the entire people, it is necessary to merge all the banks into a single national institution. Only the expropriation of the private banks and the concentration of the entire credit system in the hands of the state will provide the latter with the necessary actual, i.e., material, resources—and not merely paper and bureaucratic resources—for economic planning.”

The nationalization of the banks, however, will produce positive results, Trotsky explained, “only if the state power itself passes completely from the hands of the exploiters into the hands of the toilers.”

For this to be realized the working class must build its own mass political party, independent of and irreconcilably opposed to the two parties of big business, and dedicated to the fight for a workers’ government to replace capitalism with socialism.