Once again, the facts tell a different story.  The ethanol disaster is not unique: history is replete with failed technology predictions.  Hobbling the private sector by transferring a substantial amount of resources to the public sector will not foster technological innovation.  Instead, it empowers the government to choose which prospective alternative energy technologies should be supported.  We are then betting our energy future on the wisdom and knowledge of the energy scientists on Capitol Hill. 

Global warming should not be used as an excuse to increase the size of government.  The most assured means to obtain effective alternative energy technologies is to allow the private sector to continually experiment (and often fail) with different ideas. 

Fallacy #4: Cap and Trade Regulation will generate economic growth:  The final fallacy is, perhaps, attracting the most attention.  Proponents claim, due to fallacies 1 – 3, that cap and trade will instantaneously create thousands of new green jobs.  Our economy will flourish as we invent ourselves out of the current energy dilemma.  The belief that we can impose a mandate on our economy to use less energy and, somehow, that economic growth will accelerate as a result is a fantasy, pure and simple. 

Capitalism is a process of creative destruction – Henry Ford put some small automobile manufacturers out of business while he was revolutionizing the automobile industry and creating millions of new jobs on net.  Unlike Henry Ford, cap and trade does not create anything.  The incentives to create the alternative technologies already exist – as do investors who will willingly risk their money if they believe the project is viable.  What cap and trade adds is a prohibition to use our current energy resources while these new technologies are being tested.  Such a restriction is not growth enhancing.

As debunking the fallacies indicate, cap and trade regulation is bad public policy.  For those interested in addressing global warming fears, there are more efficient means to do so that will also safeguard the economy.  As for cap and trade, let’s hope it meets the same fate next year when it returns once again.