Just when you expect President Obama to moderate his domestic economic policies, which have stifled job growth and fostered an anemic recovery following the passage of his two signature pieces of legislation — the Dodd-Frank Wall Street Reform and Consumer Protection Act and the Affordable Care Act — it gets worse.
Now, after bringing banking and health care — about 31% of the U.S. economy — under government heel, Obama wants to further control and transform the energy sector, which represents another 10.5% of the economy.
Blocking the Keystone XL pipeline, which could help bust OPEC by transporting abundant Canadian oil into the U.S., was the opening salvo of Obama’s war against fossil fuels. The march now is to destroy the coal industry, which employs nearly 800,000 and remains the country’s leading fuel source for electricity — providing nearly 40% of America’s electric power.
So how can this be a priority at the very time when the fragile and faltering economy reported the first negative quarterly growth in three years?
For Obama, it has never really been about people or the economy. Judging by actions rather than rhetoric, he has always been more committed to the left-wing politics of socialist transformation than to improving the day-to-day lives of average Americans.
His early bailouts favored special interests, allies in the unions and supporters among the politically connected such as General Electric, the largest alternative-energy manufacturer, and countless smaller ones — many of which, such as Solyndra, failed and destroyed billions in taxpayer resources.
Later, Obama’s health care legislation cut deals with insurance companies and Big Pharma while raising costs to most consumers.
The fact is that in 2010, when both houses of Congress were under Democratic Party control, Obama’s anti-carbon policy proposals were debated and rejected. Now the president is going around Congress and the Constitution. By executive fiat, Obama is reinterpreting the Clean Air Act and directing the Environmental Protection Agency (EPA) to implement what Congress spurned: the imposition of cap-and-trade regulations on the entire electric power generating industry.
The new EPA rules, which require a 30% reduction in carbon emissions, impose what is effectively an unattainable standard on state-based power grids, which will result in millions having higher electric bills and more exposure to rolling blackouts. Like ObamaCare, the result will be increased costs for lower quality and less choice.
According to industry experts, the new EPA mandates will mean less reliability of the nation’s electric grid, which will discourage U.S. manufacturers from expanding production and creating jobs. Thus, Obama’s transformation of the U.S. energy sector will increase uncertainty and have job-killing consequences similar to what was created by ObamaCare.
Sen. Jim Inhofe, R-Okla., senior member of the Environment and Public Works Committee, said that Obama’s proposed EPA rule to cut carbon emissions from existing power plants will effectively force many coal-burning power plants to shut down. He estimates the toll to be 224,000 lost jobs, $289 billion more in electricity costs, $400 billion a year in de facto tax hikes, $500 billion in lowered overall household incomes and $51 billion in lost economic activity.
In general, the Obama EPA’s proposed regulations put America’s low- and middle-income families most at risk of paying disproportionately more for energy. And these families have seen their income dwindle by 22% over the last decade, while their energy bills have increased by 27%.
If this initiative stands, West Virginia, a poor state that derives 96% of its power from coal, will be further impoverished and in need a federal bailout.
So what is to be done? The GOP-controlled House should take immediate legal action, starting with an injunction against the EPA and a restriction of its funding. There are numerous legal arguments to pursue, starting with the unconstitutionality of Obama’s application of the Clean Air Act. It was directed at regulating pollutants, not CO2 emissions.
The president’s use of the EPA to make good on his 2008 energy platform campaign promise that “energy prices will necessarily skyrocket” can and should be stopped.
When the Bible said, “Pride goeth before destruction, and a haughty spirit before a fall,” it was referring more to hubris than incompetence. But with the Obama administration, the latter turns out to be the political gift that keeps on giving. Republicans now have all the firepower they need to assure a sweep in the November midterm elections.
Originally published at Investor’s Business Daily.