Quote:
Originally Posted by ithos
In the last few years not only did the US become energy independent on oil but also was the marginal producer in the world. Based on the proclamations of the incoming administration, existing fracking operations and drilling permits will come under increased regulatory pressure to be downscaled or eliminated. The purpose is to reduce the carbon emissions.
The impact on the economy will be two fold. First the prices of all energy sources will go up which will restrain the growth of the economy and put a disproportionate burden on the poor and lower middle class.
The second and possibly the biggest hurdle to returning to the pre pandemic record low unemployment levels is that the US will lose its primary competitive advantage for manufacturing. This will be a major drag for jobs particularly in the Midwest which had seen a revival of sorts due to not only cheaper energy costs but the USMCA agreement, deregulations and protective tariffs.
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I agree with the above, but would add that it will also put a disproportionate burden on people who choose to live in rural areas. One of the primary ways they try to reduce carbon is to tax the hell out of energy and use the proceeds on public transit. People living in rural areas depend greatly on their automobiles as a way of life and Public transit simply is not an option. Furthermore, many rural folks need to drive gas guzzling four wheel drive vehicles to safely navigate the associated terrain. Hugh carbon taxes on energy is a form of forced urbanization.