That’s not me talking (well, it is too); rather, it’s the non-partisan California Legislative Analyst that has called it that. The Wall Street Journal reports on the LAO’s study of the measure, noting:
“California’s economy at large will likely be adversely affected in the near term by implementing climate-related policies that are not adopted elsewhere.” While the long-term economic costs are “unknown,” the study finds that AB-32 will raise energy prices, “causing the prices of goods and services to rise; lowering business profits; and reducing production, income and jobs.”
Well, duh! California can’t change the laws of thermodynamics nor can they force business to pay above market rates. AB32, California’s cap & trade measure, significantly increases the cost of a business operating in the Bronze Golden State. There’s a solution, though: A ballot initiative on the November 2010 election would stop the implementation of AB32 until California’s unemployment rate falls to 5.5%. Given that California’s current unemployment rate is 12.6%, this initiative would effectively put AB32 on the ash heap of history.