Waxman Markey Cap and Trade’s Biggest Losers: Paper, Plastics and Rubber
Nicolas Loris /
We continue to highlight particular industries hit hard by the Waxman-Markey cap and trade bill. The next three, although technically classified as two categories, are also energy-intensive subsets of the manufacturing sector. The North American Industry Classification System (NAICS) classifies the plastics and rubbers products industries as a manufacturing “subsector [that] make[s] goods by processing plastics materials and raw rubber. The core technology employed by establishments in this subsector is that of plastics or rubber product production. Plastics and rubber are combined in the same subsector because plastics are increasingly being used as a substitute for rubber; however the subsector is generally restricted to the production of products made of just one material, either solely plastics or rubber.”
And just as the name states, the paper industry includes everything paper. And just like other energy-intensive industries, paper, plastics, and rubber would all be hit disproportionately hard by a cap and trade bill that drives up the cost of energy.
How bad is it?
The Waxman-Markey bill would destroy over 33,000 plastics and rubber jobs on average, which would hit a high of over 80,000 fewer jobs by 2035.
The paper industry fares a little better, but it’s still not good news. It’s like chopping off one foot as opposed to both. Heritage analysis found that with cap and trade there would be 15,000 fewer jobs on average in the paper industry, reaching 36,291 fewer jobs by 2035.
But don’t worry, because the architects of the bill built in unemployment insurance; too bad it will only help 1.5% of those losing their jobs from the bill. And over the 2012-2035 timeline, job losses average over 1.1 million. By 2035, a projected 2.5 million jobs are lost below the baseline (without a cap and trade bill). Do the workers in paper, plastics, and rubber like their odds?