If you live in Rep. Bobby Bright’s district (D-AL-02), you might want to contact him and urge a NO vote on the climate bill set for a vote tomorrow. The Capitol Hill switchboard is (202) 224-3121. If you are unfamiliar with the bill, I’d recommend reading the Wall Street Journal’s piece on the Waxman-Markey bill. The Journal writes in a piece titled, The Cap and Tax Fiction: Democrats off-loading economics to pass climate change bill, that the bill could “cost the economy $161 billion in 2020, which is $1,870 for a family of four. As the bill’s restrictions kick in, that number rises to $6,800 for a family of four by 2035.”
If the climate bill passes, the GDP will take a hit. I’m strongly recommending anyone considering investments in the US reconsider that strategy. China becomes an even more important investment play. It is unlikely China will damage its economy in any climate change initiatives. While the US will damage manufacturing and also likely retail as energy costs reduce consumer discretionary spending. The erosion of GDP would make me very bearish on the global economy once the restrictions begin.