Cap and trade: attempt to reengineer economy

Claim:

“As I see it, the most important single item in President Obama’s budget is his commitment to a cap-and-trade plan (to limit and reduce carbon emissions). It represents nothing less than an absolutely breath-taking attempt at reengineering the entire American economy.”

— James Pethokoukis, U.S. News and World Report, February 26, 2009

Truth:

Maybe just a touch of hyperbole here?

President Barack Obama’s proposal to cap and reduce America’s global warming pollution is a straight forward plan to reduce America’s dependence on fossil fuels and foreign oil and put people to work to unleash our green energy future.

This is not a government take over of the energy sector. The only mandate from the government would be to cut global warming pollution. Industries and utilities would be free to make business decisions on the best way to meet these pollution reduction requirements.

A cap on global warming pollution would send a clear market signal that businesses must innovate and adopt cleaner energy solutions or they would have to pay for market-based pollution credits. It is a balanced plan that offers the most efficient and effective way to deal with the growing threat of global warming.