Waxman-Markey Bill Could Cause More Job Losses and Raise Energy Costs

By Annie Berman – Talk Radio News Service

Components of American Clean Energy and Security Act of 2009, also known as the Waxman-Markey bill, will actually contribute to the current economic recession. According to an economic analysis done by the National Association of Manufacturers (NAM) and the American Council for Capital Formation (ACCF), provisions of the bill will cause more job losses and raise energy prices.

The report released Wednesday focuses on states that rely heavily on manufacturing. Jay Timmons, Executive Vice President for NAM, says that the bill is heavily reliant on a cap and trade program which will raise energy costs over a time line.

“Higher energy costs are bad for manufacturers and the 12 million Americans who work in the manufacturing sector,” said Timmons. “After all, manufacturing uses a third of all the electricity generated in the United States.”

The analysis factors in the economic stimulus package, new energy technologies access to domestic oil and gas, and the creation of green jobs and covers the 18 year implementation of the bill. The national results of the analysis reveals that cumulative gross domestic product (GDP) losses could range from $2.2 trillion to $3.1 trillion. The analysis also reveals that declining output levels would cost between 1.8 and 2 million jobs.

“The manufacturing sector actually absorbs a disproportionate burden. Nearly two-thirds of those overall job losses,” said Timmons.

The Waxman-Markey bill aims to reduce greenhouse gas emissions by mandating a cap and trade program that governs fuel choices available to businesses and consumers. The bill was passed by the House of Representatives earlier this summer and it is expected that a Senate version of climate legislation will be released later this year.