Where do they get these numbskulls? We refer to a whole class of grifter and greaser on the federal payroll. But today, we choose just one, Energy Secretary Jennifer Granholm.
From Fox News:
‘During an appearance on Fox News Sunday, Granholm said the Democrats’ $437 billion climate and health care legislation will provide thousands of dollars in tax rebates for lower- and middle-class Americans to weatherize their homes.
‘“If you are low income, you can get your home entirely weatherized through the expansion from the bipartisan infrastructure laws, a significant expansion — you don’t have to pay for anything,” Granholm said.
‘“If you don’t qualify for the weatherization program, you will be able to, starting next year, get rebates on the appliances and equipment that will help you reduce your monthly energy bill by up to 30%,” she added. “That is all about reducing costs for people.”’
Really? You don’t have to pay for anything? It’s all about reducing costs?
People naturally want the most for their money. And if the ‘green’ alternatives really were less expensive, consumers would select them without bribes; it’s only because they are more expensive (uneconomic) that the bribery is necessary. The feds are subsidising energy sources that are inherently more costly, not less…misleading consumers about the real costs and changing how they spend their money.
So it isn’t about ‘reducing costs for people’. It’s about raising them. And ultimately, someone must pay the higher costs. Who? We’ll give you some time to think about it…
Corporations? Nope. Corporations only collect taxes; they don’t pay them. Like any other cost of business, higher taxes are passed along to consumers and/or shareholders. The part that goes to consumers must be paid by the same people Ms Granholm now claims to be helping. The part paid by shareholders reduces earnings…thereby also reducing investment, jobs, and output…that is, making ‘the people’ poorer.
The rich? Are they the ones who pay? Let’s see, all legislation is ginned up by party hacks, lobbyists, insiders, and big campaign donors. Almost all of whom are relatively rich. Do you think they would propose to pay hundreds of billions of dollars so homeowners can cut their energy costs? And what about Members of Congress? Over half of them are millionaires. Would they vote for it?
Right. Happens all the time. The elected representatives of ‘The People’ put aside their own selfish interests in order to assure the well-being of the masses. Yep. That’s what democracy is all about. Sure, it is.
No, dear reader…neither corporations nor the rich will pay for the IRA boondoggle. Instead, we, ‘the people’, will. The feds will call the tune; but average citizens will pay the piper.
Which is too bad since the feds are tone deaf. The IRA, to use the example in front of us, is a cacophony of false notes and broken rhythms. The program doesn’t take from the rich to give to the poor. It doesn’t reduce inflation. It doesn’t cut deficits. And the odds that future generations will appreciate our sacrifice — because they will enjoy better weather — are vanishingly small.
But wait…some people are already coming out ahead.
As Jean-Marie Le Pen put it, ‘ecologists are green on the outside, and pink (socialist) on the inside’. The rind may be about protecting the planet; the juicy fruit on the inside, though, goes to themselves and their friends.
The IRA provides US$161 billion worth of credits for solar and wind power projects; US$36 billion for electric vehicles and another US$37 for manufacturing plants that run on ‘green’ energy. Who gets the money?
AOL reports: ‘Clean energy stocks are the winners of the Inflation Reduction Act’:
‘“There are many facets of this bill but, EV’s and clean energy we think are going to be the two main winners based on where the dollars are being allocated,” Blackrock’s US head of thematic and active equity ETFs Jay Jacobs recently told Yahoo Finance Live.
‘Solar companies like Sunrun (RUN) and First Solar (FSLR), as well as energy storage and software companies like Stem (STEM) are just some of the beneficiaries of the bill. STEM is up 93% since late July.
‘Hydrogen fuel cell developers Ballard Power Systems (BLDP) and Plug Power (PLUG) are also seen as winners.’
Who owns these companies? The poor? The middle classes? Not likely. Instead, they’ll have to borrow money to buy their products. As Ms Granholm tells us, those energy saving devices can be financed…so the banks and non-bank lenders get a piece of the action too. And then, ‘The People’ end up even deeper in debt, earning even less money, paying even more for almost everything — but with solar panels on their roofs!
For The Daily Reckoning Australia