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Robert Reich

Robert Reich

Posted: June 17, 2010 03:06 PM

The Obama Plot for a Carbon Tax

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Teachable moments are rare in America. George Bush missed the chance right after 9/11 to call for a new era of service to the nation; he asked instead that Americans do more shopping.

Tuesday night, President Obama did not call for a tax on carbon. He didn't even ask the Senate to pass the cap and trade legislation that emerged from the House. Instead, he said there were lots of good ideas out there and he's willing to consider any of them -- which seemed more like a way of declaring cap and trade dead.

But maybe the president has a more subtle strategy in mind. Here's what New York Magazine's John Heilemann thinks may be going on:

Lacking the 60 votes necessary for cap-and-trade, the administration plans to get behind a more modest conservation measure in the Senate, then push for a carbon pricing mechanism during the conference committee merger with the House bill -- and do so during a lame-duck session after the midterms, when victorious Democrats will find it easier to make a tough vote and losing ones will be freed of political constraints.


It's plausible. After all, the president has now gotten BP to agree to a $20 billion escrow fund. Maybe the MO of this president is, like Teddy Roosevelt's, to speak softly and carry a big stick -- make nice to adversaries in public and conceal his weapon until he gets them behind closed doors.

But if that's his strategy it's a curious one considering Obama's great gift (on display especially during the 2008 presidential election) to stir the nation and mobilize it behind him.

Furthermore, given the unprecedented power of large corporations to call the shots in Washington, aided by unlimited campaign contributions and platoons of lobbyists, surely the only way to advance the public interest these days is to rally Americans to a cause. Closed-door conference committees, back-room deals, and lame-duck sessions keep the public out. And when the public is shut out, the big guys have even more clout.

Yet hard-boiled Washington hands I talk with disagree. They point to the $80 billion back-room deal that bought off Big Pharma for health care. They claim there's no other way to do business in Washington now because public opinion is too easily manipulated.

They say Machiavellian (more accurately, Emanuelian) deal-making behind closed doors ain't pretty but the public can't be counted on. The only way to get close to a carbon tax or anything else that's good for America is to buy the bums off.

Maybe. But when the bums are paid off the public gets stuck with the tab. We'll be paying far more for our drugs under the new health care law than otherwise because of the deal with Big Pharma.

The $20 billion deal with BP was also crafted in secret, and we have no way to know what assurances were given the oil giant that might cost us later.

So too with the financial reform bill that's now being finalized in conference committee, and with any potential energy bill where the real deals are made in the back room.

Remember the back-room deal that bailed out Wall Street? We still don't have all the details but it's clear the public was taken to the cleaners, and the titans of Wall Street are beaming through their bonuses.

Call me old fashioned but I still think democracy is better than corporatist negotiation. And when we have a president as articulate and thoughtful as the one we now have -- more capable than almost any occupant of the Oval Office in modern times to educate the public about real challenges and real solutions -- he and his advisors do a disservice to the American people when they make the important deals in secret.

This post originally appeared at RobertReich.org
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11:02 PM on 06/20/2010
i'm a little more vulgar than Reich. to me, all the back-room dealing means Obama is a FR$UD
02:23 PM on 06/19/2010
(1) 'Call me old fashioned but I still think democracy is better than corporatist negotiation'.

Wealthy corporations like Greenpeace or the WWF are indeed a threat to democracy

(2) 'And when we have a president as articulate and thoughtful as the one we now have -- more capable than almost any occupant of the Oval Office in modern times to educate the public about real challenges and real solutions -- he and his advisors do a disservice to the American people when they make the important deals in secret.'

Is this a not-so-subtle cry to get back to Washington DC?

The president is not articulate (have you seen him perform when the autocue is not there?), and is not thoughtful. He has been borne along by others looking after him, often not very well, all his life. His lack of writing at Harvard does not talk of 'thoughtful', his lack of ideas (I ignore the off-the-shelf socialism/hatred he has been stuffed with over the years) is becoming all too apparent. Yet you still seem to want to work for him.
05:09 AM on 06/22/2010
Blah
12:04 AM on 06/19/2010
Cap and Trade will seriously cripple any sort of recovery. I fail to rationalize how Obama doesn't come to this same conclusion.
10:57 PM on 06/18/2010
Ok before this gets passed and signed into law, let me get my solor panels on my house. The electric bill will be to much for me to pay. O no, if their is a tax on carbon I am in trouble can someone calculat how many times I exhaled co2 during this post and tell what my tax will be.
10:54 PM on 06/18/2010
Yes, and that is putting it mildly. I would not be so nice in describing the situation. Obama has turned around and pissed on a lot of his former supporters. I say former because he no longer enjoys the support of many who helped him get elected. Obama thinks that he cannot lose any votes because the Repubs are so bad. Well he is wrong. The Dems and Obama will never get any of my money for campaigns nor my votes. Many of the people I know feel the same way.
09:21 PM on 06/18/2010
There are NO tax and Cap bills before congress, Only bankster playground Cap and TRADE.

move all gov breaks and subsides from fossils and nukes to green energy.

Only solar wind and waste bio fuels can supply the worlds energy and fuel needs, clean, safe, cheaper in the long run and forever.

Immediately order energy retrofits for all gov buildings.

Rooftop PV Solar, Offshore wind, and Waste Bio char, can supply the worlds energy and fuel needs: cleanly, safely, Forever, within 12 years and cheaper in the long run 2-6 cents now, and 26$ per barrel bio oils.

http://www.ecobusinesslinks.com/solar_panels.htm
about 1$ per Wp solar panels, new.

install solar plants for about $1.30 per watt, compared with an industry average of about $1.75, according to Hardy." http://www.bloomberg.com/apps/news?pid=20602099&sid=a7K1FZoNgJ0w

Wind: “between two and six cents today, depending on location.12 Wind power approaches competitiveness with conventional generation at this price point. “

http://www.repp.org/articles/static/1/binaries/wind%20issue%20brief_FINAL.pdf

http://www.css.cornell.edu/faculty/lehmann/publ/BiofBioproBioref%203,%20547-562,%202009%20Laird.pdf

26$ per barrel bio oil from waste bio char.”
11:41 PM on 06/18/2010
Bio fuels might be the wave of the future, but it is not feasible to power this country on wind or solar. Just to replace all the nuclear power plants running today, you would need a wind farm the size of Wisconsin. The real estate for solar panels would be about the same.

There looks to be some bio fuels that in the near future could be a cheap and abundant source to power power plants across this country in the future, but we are decades or longer away (if ever) for wind or solar to be a primary source for this country. IThey are good secondary sources for power, but the U.S. doesn't have the real estate to make them a prinary source.
03:29 PM on 06/19/2010
Wrong. Do the numbers.

Rooftop solar USES NO LAND!

Offshore wind USES NO LAND!

Waste Bio Char uses the waste we now pay to throw away.

EACH alone can provide several times the worlds energy needs. Together, they can provide base load cheaper energy.

No other set of energy sources can be installed as fast.

The roof area of the average house is enough to generate the electricity they need from solar pv.
01:34 PM on 06/18/2010
The title of the article should be "Fire Rahm Emanuel!"
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Estreet1964
Gimmie the beat boys and free my soul....
02:03 PM on 06/18/2010
We can dream can't we?

Sadly, I don't think it would make much difference. It's not like Rahm is forcing Obama into bed with these corporations.
12:23 PM on 06/18/2010
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Exactly how would you propose to negotiate a $20,000,000,000.00 deal in public???

......In a "lynch BP" atmosphere....???

----can't be done---
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This user has chosen to opt out of the Badges program
11:05 PM on 06/20/2010
ahh, yes, the ol' "you can't handle the truth" defense

well done
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Kane
Now with 20% More Fiber!
11:38 AM on 06/18/2010
For weeks the media has treated the public to a non-stop series of op-eds and talking heads lamenting how President Obama was failing to express the proper amount of anger towards BP. Well, now we have Congressman Joe Barton and other republicans unequivocally supporting, defending and apologizing to BP. This is no isolated incident. Not only have republicans failed to express the proper amount of anger towards BP, they have unabashedly put the interests of BP ahead of the people of the Gulf.

Can we now assume that the media will lament at least an equal amount of anguish towards republicans for their failure to express a modicum of anger towards BP? Will they take republicans to the woodshed for their unyielding support of BP? Will they highlight the fact that it is these same BP defenders who hold the rest of the country hostage in addressing global warming and who continue to block our path towards a green future? In the coming weeks and days it will be interesting to see the response or non-response from those in the media and here at HP. Can you hear me, Mr Reich?
06:47 PM on 06/18/2010
Well said!!!!
Linda from Deerfield
Paying attention
11:34 AM on 06/18/2010
Sorry to see Professor Reich reduced to the same exercise in projection as the rest of us. President Obama has tried repeatedly to appeal to our logic, to our better angels, to our responsibility to rise to the challenge of coming together to thoughtfully run this nation -- to no avail. We have failed him, as we have failed ourselves, and he may be giving up on us.
06:48 PM on 06/18/2010
Totally agree.
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Pamela Grundy
Freelance writer & blogger.
11:01 AM on 06/18/2010
It smells. Matt Taibbi predicted earlier this year that energy would be the next big bubble and you can just feel it coming already--This is not about the environment or a sensible energy policy at all, but rather about how to help Goldman create the next obscene pile of profit out of thin air.

And what happens to the rest of us? Who cares! Not government, not corporations, not nobody. There's an outer limit to this kind of corruption, and when our country reaches it, it ain't gonna be pretty. When working people have nothing to lose, they can be persuaded to adopt extreme agendas. Many already are. It won't take much to set it off if jobs don't come back--and they won't.
12:05 PM on 06/18/2010
matt is correct. the electronic exchange for environmental derivatives is ready to go, just waiting for legislation to be passed in the u.s. check out their site and browse...

http://nymex.greenfutures.com/
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Wm Hunn
Critical Thinking.....The Other National Deficit!
10:30 AM on 06/18/2010
"...he and his advisors do a disservice to the American people when they make the important deals in secret."

Exactly.
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ran6110
Mac, iPhone & iPad developer.
10:12 AM on 06/18/2010
Like many others I agree we must take better care of the only home we have. I'm not sure about this global warming thing but that's a different conversation.

If we need do do something to save the planet can't we just once in all of the history of mankind actually do something that benefits everyone? It appears to me that cap and trades big claim to fame is that it let's the middle class feel good about saving the planet while putting a lot of money and power into the hand of people who just want to own and control things.

The money that could be raised with a carbon tax could potentially erase poverty and hunger around the world if it was managed properly. Instead every plan I've heard or read about requires a bunch of middle men making deals and squeezing out as much of the money for themselves.

I don't want a system where there is little or no change (or actually gets worse) while a bunch of greedy rich people walk off with even more of the nation or worlds wealth.

So, let' truly make the world a better place for everyone not just a bunch of greedy rich people! Is that really too much to ask for?
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iblogleft
Certifiable
10:05 AM on 06/18/2010
I still think we have to nationalize our domestic energy production before we can implement cap and trade effectively. Passing costs directly to the consumers while energy companies evade profit taxes in some far off nation will kill our society.

Only when society can share in the profit, as well as the sacrifice, will we be able to transform our energy systems..

We cannot sit back and "hope" these energy companies will pay the required taxes and royalties while gas is six dollars a gallon and it costs $500 a month to cool your home. I simply do not trust they will meet their end of the bargain.
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Turukano
In 20 years, everyone will say they voted Obama
11:43 AM on 06/19/2010
By nationalize, you mean steal right? We cannot live in a democracy where businesses need to fear being taken over by the federal government whenever folks get a little angry.
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iblogleft
Certifiable
12:04 PM on 06/19/2010
Steal what we are supposed to own?

They are our resources, that we have allowed a group of government cronies to sell for a pittance in royalties. It's called the M.M.S.

We cannot trust private corporations and private profit margins with the needs of society. They can have the "wants", but society should control the needs.
09:57 AM on 06/18/2010
Is this the change he promised the lemmings? Back room deals and sneak cap and trade through wihtout no one noticing?

Wow, now that's a change we can all pay for. Literally.
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Estreet1964
Gimmie the beat boys and free my soul....
02:08 PM on 06/18/2010
It's the corporate criminals who are the beneficiaries so you FoxBots should love it.