EPA’s Flawed Cap and Trade Analysis
Nicolas Loris /
Today the National Black Chamber of Commerce (NBCC) released a new study that predicts devastating economic impacts of Waxman-Markey’s cap and trade legislation.
The analysis determines that by 2030 the law would:
• Reduce national GDP roughly $350 billon below the baseline level;
• Cut net employment by 2.5 million jobs (even after accounting for new “green” jobs); and
• Reduce earnings for the average U.S. worker by $390 per year.
• Reduce an average household’s annual purchasing power by $830.
Although the Chamber’s model, used by CRA International who was commissioned for the study, differs from the Global Insight model our economists used, the two major model-based analyses of this legislation have reached the same conclusion: it’s an economic nightmare. Our analysis found the drafted legislation would: