The Economic Impact of Waxman-Markey

The Economic Impact of Waxman-Markey by William W. Beach, David Kreutzer, Ph.D., Karen Campbell, Ph.D. and Ben Lieberman WebMemo #2438 Representatives Henry Waxman (D-CA) and Ed Markey (D-MA) proposed yet another global warming bill following the tradition of McCain-Lieberman, Lieberman-Warner, Dingell-Boucher, and others. Though the proposed legislation would have little impact on world temperatures, it is a massive energy tax in disguise that promises job losses, income cuts, and a sharp left turn toward big government. The result is government-set caps on energy use that damage the economy and hobble growth--the very growth that supports investment and innovation. Analysis of the economic impact of Waxman-Markey projects that by 2035 the bill will: -Reduce aggregate gross domestic product (GDP) by $7.4 trillion, -Destroy 844,000 jobs on average, with peak years seeing unemployment rise by over 1,900,000 jobs, -Raise electricity rates 90 percent after adjusting for inflation, -Raise inflation-adjusted gasoline prices by 74 percent, -Raise residential natural gas prices by 55 percent, -Raise an average family's annual energy bill by $1,500, and -Increase inflation-adjusted federal debt by 29 percent, or $33,400 additional federal debt per person, again after adjusting for inflation. (for the rest of this story click the length at the top)