Wednesday, May 27, 2009

The green economy

According to this article the Obama Administration's push to raise CAFE standards will increase the price of a car by about $1,300 while cap and trade will mean Americans -- depending on their income quintile -- will pay between $680 to $2,180 more each year for goods and services because of higher energy costs.

Question: how does raising the cost of stuff benefit the economy? I imagine it requires logic similar to how expanded government intervention in health care will reduce costs.

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