If the economy is impaired by regulations and taxes, it’s axiomatic that those on the economy’s bottom rungs will bear some of the costs, a fact rarely acknowledged by those pushing for regulations and taxes. In fact, they often perpetuate the canard that regulations and taxes somehow help the poor. From Blaine Conzatti at mises.org:
Are you concerned about the poor’s economic welfare? If so, you should celebrate President Trump’s announcement that the United States will withdraw itself from the Paris Agreement.
The Paris climate accord, which was ratified last year, attempts to “brings all nations into a common cause to undertake ambitious efforts to combat climate change and adapt to its effects.” Supporters of the agreement claim it is necessary to avert the disastrous consequences of climate change.
Regrettably, the plan’s supporters are committing the greatest economic fallacy, which Henry Hazlitt, the acclaimed economics writer, warned about in his most prominent work, Economics in One Lesson(1946):
The bad economist sees only what immediately strikes the eye; the good economist also looks beyond. The bad economist sees only the direct consequences of the proposed course; the good economist looks also at the longer and indirect consequences.
While laypeople, pundits, scientists, and economists have focused their attention on what Trump’s decision might mean for climate change, these groups have largely ignored the effect of the agreement on poorer American households. Here are three reasons why withdrawing from the Paris Agreement is good for the poor:
The Paris Agreement raises energy costs for hardworking American households.
Under the agreement, the United States pledged to reduce its greenhouse gas emissions by 26-28% below its 2005 level by 2025. This would be accomplished by transitioning from fossil fuels to renewable sources of energy.
Although renewable energy will likely become the technology of the future, prematurely transitioning to “greener” sources creates a problem for Americans struggling to make ends meet.
Right now, these alternative sources of energy are far more expensive (and less reliable) than traditional sources. A study published last year found that “electricity from new wind and solar power is 2.5 to 5 times more expensive than electricity from existing coal and nuclear power.”
To continue reading: Withdrawing From Paris Accord Helps America’s Most Vulnerable