President Barack Obama is planning on announcing his latest climate plan on Tuesday. In a tweet sent out by the White House was included a link to a video on his announcement. On the video, Obama said:
“This Tuesday, I’ll lay out my vision for where I believe we need to go — a national plan to reduce carbon pollution, prepare our country for the impacts of climate change and lead global efforts to fight it.”
All indications are that Obama’s climate plan will call for a significant reduction in carbon-dioxide emissions from power plants. This will certainly force the price of electricity to rise higher and higher. A growing number of industries are operating on a shoestring profit margin. Higher energy costs may be too much for some of these borderline companies to handle, forcing them to downsize, reduce hours or close their doors.
Some power companies, especially smaller ones, will be faced with spending millions of dollars they don’t have in order to comply with new regulations on carbon-dioxide emissions. Where will they get the money to make the required modifications if not from their customers? If they can’t secure the necessary funds that way, they will be forced to shut down, costing jobs and a shortage of power to those they once supplied.
In the past, Obama has pushed for more green energy technology. He has already pumped billions of taxpayer dollars into developing green energy technology, only to have many of those companies go out of business. Most green energy alternatives are very costly and cannot compete with fossil fuel or nuclear produced energy. His new regulations will no doubt funnel billions more into green energy programs that will also fail due to the high cost of alternative energy.
New emission regulations will also force many manufacturing companies to face difficult decisions. Will they be able to afford the costs of upgrading their facilities to comply with cleaner emissions? Will those upgrades force them to cut their workforce in number of hours in order to pay for the expensive retrofits? Will some companies buckle under the added expense of complying and say enough is enough and padlock their doors and walk away?
In today’s struggling economy and job market, tighter environmental regulations are certain to put some companies out of business, force others to lay off workers and cause almost everyone to pay higher prices for electricity. None of these will help the economy.
It wouldn’t surprise me to see this cause severe economic chaos in the power industry and in will ride President Obama and take it over like he did the automotive industries. Only this time, the government will keep its control and will become the sole provider of electrical power throughout the nation.