Will Cap and Trade Jump Start America’s Economy?

Nicolas Loris / March 25, 2009

Although talk of the economy predictably dominated President Barack Obama’s news conference last night, his persistent focus has been health care, education and energy. Cap and trade to reduce carbon dioxide and clean energy investment were again the center of attention:

When it comes to cap-and-trade, the broader principle is that we’ve got to move to a new energy era, and that means moving away from polluting energy sources towards cleaner energy sources. That is a potential engine for economic growth.”

As for cap and trade, let’s take a trip down memory lane.

Speaking about cap and trade on the campaign trail in January of 2008, when the economy wasn’t nearly as bad, President Obama told the San Francisco Chronicle, “Under my plan of a cap and trade system, electricity rates would necessarily skyrocket.” (more…)