Pigou Club Gains
By Arnold Kling
A sign that the Pigou Club is gaining traction is that the Washington Post has an article called Tax on Carbon Emissions Gains Support that does not mention Greg Mankiw.
The article does, however, quote some real, um, knowledge-challenged people who oppose the idea of a carbon tax (there are intelligent opponents, but they didn’t make it into the story).
Democrats such as House Natural Resources Committee Chairman Nick J. Rahall II (W.Va.) say they have no desire to revisit the issue. “I’m not an advocate of a carbon tax,” Rahall said. “That’s going to be passed on; the consumer would end up paying for that.”
I wonder what Chairman Nick thinks happens to the costs of regulation. I guess he figures that those costs never get passed on, and instead consumers get a free ride at the expense of Big Evil Corporations.
Given the level of economic understanding in Congress, be afraid of whatever is enacted in the name of stopping global warming. Be very afraid.