Obama: Bankrupting The Coal Industry

The latest unpleasant factoid to slip out about Obama concerns his plans to bankrupt the American coal industry, increase unemployment and skyrocket energy prices.


The above audio came from an interview given by Obama to the San Francisco Chronicle in January of 2008:

“But ... let me sort of describe my overall policy. What I’ve said is that we would put a cap and trade policy in place that is as aggressive if not more aggressive than anyone out there. I was the first call for 100 percent auction on the cap and trade system. Which means that every unit of carbon or greenhouse gases that was emitted would be charged to the polluter. That will create a market in which whatever technologies are out there that are being presented, whatever power plants are being built, they would have to meet the rigors of that market and the ratcheted-down caps that are imposed every year.

“So if somebody wants to build a coal-powered plant, they can. It’s just that it will bankrupt them because they’re going to be charged a huge sum for all that greenhouse gas that’s being emitted. That will also generate billions of dollars that we can invest in solar, wind, biodiesel, and other alternative energy approaches. The only thing that I’ve said with respect to coal — I haven’t been some coal booster. What I have said is that for us to take coal off the table as an ideological matter, as opposed to saying if technology allows us to use coal in a clean way, we should pursue it, that I think is the right approach. The same with respect to nuclear. Right now, we don’t know how to store nuclear waste wisely and we don’t know how to deal with some of the safety issues that remain. And so it’s wildly expensive to pursue nuclear energy. But I tell you what, if we could figure out how to store it safely, then I think most of us would say that might be a pretty good deal.

“The point is, if we set rigorous standards for the allowable emissions, then we can allow the market to determine and technology and entrepreneurs to pursue, what the best approach is to take, as opposed to us saying at the outset, here are the winners that we’re picking and maybe we pick wrong and maybe we pick right.”

What Obama is saying is that his administration will impose massive cap and trade restrictions that will effectively shut down the coal industry (and nuclear as well) in America..unless magical technologies are invented that allow coal to be used that meets Obama's environmental standards.

That bears repeating; Obama is telling us quite clearly that he's going to tax and penalize both the coal and nuclear industries into bankruptcy, and he's only open to utilizing these energy sources if there are magical new technologies in the future that developments which let us release the energy in coal without releasing any carbon dioxide or make spent nuclear fuels completely risk-free, tests that ethanol and hydroelectric power would be unable to meet in spite of their characterization as 'safe, clean energy.'

This dovetails with Joe Biden's remarks that were caught on camera about not utilizing coal in America, even with the relatively safe and environmentally friendly gassification processes that exist today.

Inth esame interview, Obama also acknowledges that his policies will cause energy rates to skyrocket. Ed Morrisey at Hot Air has the vid and the transcript:

The problem is not technical, uh, and the problem is not mastery of the legislative intricacies of Washington. The problem is, uh, can you get the American people to say, “This is really important,” and force their representatives to do the right thing? That requires mobilizing a citizenry. That requires them understanding what is at stake. Uh, and climate change is a great example.

You know, when I was asked earlier about the issue of coal, uh, you know — Under my plan of a cap and trade system, electricity rates would necessarily skyrocket. Even regardless of what I say about whether coal is good or bad. Because I’m capping greenhouse gases, coal power plants, you know, natural gas, you name it — whatever the plants were, whatever the industry was, uh, they would have to retrofit their operations. That will cost money. They will pass that money on to consumers.

They — you — you can already see what the arguments will be during the general election. People will say, “Ah, Obama and Al Gore, these folks, they’re going to destroy the economy, this is going to cost us eight trillion dollars,” or whatever their number is. Um, if you can’t persuade the American people that yes, there is going to be some increase in electricity rates on the front end, but that over the long term, because of combinations of more efficient energy usage, changing lightbulbs and more efficient appliance, but also technology improving how we can produce clean energy, the economy would benefit.

If we can’t make that argument persuasively enough, you — you, uh, can be Lyndon Johnson, you can be the master of Washington. You’re not going to get that done.

The one thing Obama, like most socialists doesn't understand that with high energy costs, taxes and massive government regulations in a stagnating economy, businesses aren't going to be investing in reasearch and develoment...they'll be retrenching, laying off people and raising prices to cover their increased overhead.

High taxes, skyrocketing energy costs and a retreat abroad..sounds a lot like the Carter years to me.

Don't forget to vote.