If corporations are levied fines and taxes as it is proposed in cap n trade, will the corp just eat the loss?
Saturday, May 15th, 2010 at
11:48 pm
and risk shareholders bailing? Or will the consumer eat the loss and ultimately pay more for said product?
What is the economically logical answer to this?
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I think they’ll pass it on to consumers. So, if their competitors do the right thing, their prices will be lower and we’ll all be off to see the wizard when they close down and their products go for fire sale prices.
Of course the consumer will bear the brunt of this…but one thing we can do and should do is limit the pay of the CEOs…the greed in this country is ridiculous.
But do you want to do nothing about dirty air, contaminated water, contaminated food…and die of poisoning? And how much will the medical bills be?
Something needs to be done. So do we debate about the cost and allow more pollution?
Sure……..they wouldn’t dream of passing losses on to their customers…..
Anyone that thinks this crap and tax scheme is anything more than a way for Al Bore and his lefty cronies to make TONS of money at our expense is obviously just plain ignorant. I would think that the revelation that the whole AGW argument was nothing more than a leftist attempt at a takeover of the world, based on falsified, untested data, with no other side of the debate even being allowed, would be enough to wake people up, but for some reason lefties will be lefties to the end.
No, the costs will be passed on to consumers. China is refusing to sign on without substantial aid because of the harm it will do to it’s poorest citizens.
For the govt. it’s all about power and money. The govt. isn’t concerned about us or our planet or they would let the free market fix it’s own problems - which it has reduced emissions substantially on it’s own. It’s almost reached it’s target reductions set by the Feds.
Why do libs want them to tax us for it and do so much harm to people in poverty all over the world?
Of course many are going to try to pass on the fees to consumers, but you have to remember the entire role of competition in the marketplace. There will be those corporations who think they can pass on the extra costs to the consumer without changing anything they do, and then there will be other corporations who turn to cleaner energy and thus don’t incur these extra fines and taxes, and thus don’t need to pass on the costs to consumers. Who do you think is going to win? Remember how capitalism works and why it benefits us all if the conditions are right.
No the consumer will eat all cost increases!!
May God Bless you and I wish you a Merry Christmas
the free market speaks for itself. Reagan was also the president durring a recession. he let the market recover itself. obiously big business has to be monitored fro wrongdoing but if u try to pressure a corporation to make bad loans or do a government takeover, it hurts business which means loss of jobs.
Obama’s logic is to make loans to people with no credit; this got us into trouble in the first place. Governement’s business if for the people. Senators and Congressman showed us they couldn’t bring about simple healthcare reform. now their ;stimulating’ policies and health care Deform are raising costs and causing further job loss. they’re slapping small business on the back while unching it in the stomache. the Democrats will want businesses to run now by US law or the law of economics, but by their law. businesses will be forced out of business!