Some members of Congress want to tax hydrocarbon use and carbon-dioxide emissions. Moreover, United Nations climate alarmists are trying to devise a new treaty to regulate energy use at the international level. Even one of these government actions would send shock waves through the economy. If all three are imposed (or worse, imposed in conjunction with Obamacare and other tax increases on job and wealth creators) the impacts will be devastating.
These actions are intended to increase the cost of the hydrocarbon energy that powers our economy. Yet raising the cost of transportation fuels, electricity, lighting, heating and air conditioning will raise the price of food, materials and equipment. This will severely impact the bottom line for factories, utilities, offices, farms, shops, airlines, shippers, hospitals, schools, churches, charities and government offices. The poorest families may get rebates for their increased energy costs, but institutions will not. They will be forced to reduce wages, hours and benefits, hire fewer full-time employees, lay off people, outsource operations to countries where energy costs are lower or even close their doors.