The Biggest Economic Mistake Since The Days Of Herbert Hoover

By Jon Huey, on June 29, 2009

Rep. McClintock gave the following floor speech in opposition to the Cap and Trade legislation on June 26, 2009.

I had a strange sense of Deja Vu as I watched the self-congratulatory rhetoric on the house floor tonight, and I feel compelled to offer this warning from the Left Coast.

Three years ago, I stood on the floor of the California Senate and watched a similar celebration over a similar bill, AB 32.  And I have spend the last three years watching as that law has dangerously deepened California’s recession.  It uses a different mechanism than Cap and Trade, but the objective is the same: to force a dramatic reduction in carbon dioxide emissions.

Up until that bill took effect, California’s unemployment numbers tracked very closely with the national unemployment rate.  But then in January of 2007, California’s unemployment rate began a steady upward divergence from the national jobless figures.  Today, California’s unemployment rate is more than two points above the national rate, and at its highest point since 1941.

What is it that happened in January of 2007?  AB 32 took effect and began shutting down entire segments of California’s economy.  Let me give you one example from my district.  The City of Truckee, California was about to sign a long-term power contract to get its electricity from a new, EPA-approved coal-fired electricity plant in Utah.  AB 32 and companion legislation caused them to abandon that contract.  The replacement power they acquired literally doubled their electricity costs.

So when economists warn that we can expect electricity prices to double under the cap and trade bill, I can tell you from bitter experience that in my district, that’s not a future prediction, that is an historical fact.

Gov. Schwarzenegger assured us that AB 32 would mean an explosion of new, green jobs -- exactly the same promises we’re hearing from cap and trade supporters.  In California, exactly the opposite has happened.  We have lost so many jobs that the UCSB economic forecast is now using the D-word – Depression – to discuss California’s job market.

M. Speaker, the Cap and Trade bill proposes what amounts to endlessly increasing taxes on any enterprises that produce carbon dioxide or other so-called greenhouse gas emissions.  We need to understand what that means.  It has profound implications for agriculture, construction, cargo and passenger transportation, energy production, baking and brewing – all of which produce enormous quantities this innocuous and ubiquitous compound.  In fact, every human being produces 2.2 pounds of carbon dioxide every day – just by breathing.

So applying a tax to the economy designed to radically constrict carbon dioxide emissions means radically constricting the economy.

And this brings us to the fine point of it.

When you discuss the folly of the Hoover Administration – how it turned the recession of 1929 into the depression of the 1930’s, the first thing that economists point to is the Smoot-Hawley Tariff Act that imposed new taxes on over 20,000 imported products.

Waxman Markey is our generation’s Smoot Hawley.  In fact, it’s worse because it imposes new taxes on an infinitely larger number of domestic products on a scale that utterly dwarfs Smoot-Hawley.

Let’s ignore for the moment the fact that the planet’s climate is constantly changing and that long term global warming has been going on since the last ice age.  Let’s ignore the fact that within recorded history we know of periods when the earth’s climate has been much warmer than it is today and others when it has been much cooler.  Let’s ignore the thousands of climate scientists and meteorologists who have concluded that human-produced greenhouse gases are a negligible factor in global warming or climate change.

Ignore all of that and still we are left with one lousy sense of timing.  In the most serious recession since the Great Depression – why would members of this house want to repeat the same mistakes that produced that Great Depression?  Watching how California has just wrecked its economy and destroyed its finances, why would they want to do the same thing to our nation?

M. Speaker, this is deadly serious stuff.  It transcends ideology and politics.  This House has just made the biggest economic mistake since the days of Herbert Hoover.

If this measure becomes law, two things are certain.

First, our planet will continue to warm and cool as it has been doing for billions of years.

Second: Congress will have delivered a staggering blow to our nation’s economy at precisely that moment when that economy was the most vulnerable.

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Well said.  What can we do to reverse AB32 in California?  I am so angry to see the idiocy of our state politicians, that has led to simultaneous loss of jobs and increase in cost of living for working families.  The economic damage is only beginnning.  If you read the governor's website, that announced signing AB32 it says "Because of California's massive and growing economy, the state is the 12th largest emitter of carbon in the world ".  Also, the site says the goal of AB32 is to "Establish a statewide greenhouse gas emissions cap for 2020, based on 1990 emissions by January 1, 2008. "  It seems we are achieving the 1999 emissions goal, by shrinking our economy back to pre-1999 levels.  That level of economic destruction may put smiles on the faces of extreme environmentalists, but the rest of us should be angry and not stand for this!

Sir you are indeed a patriot. I can only wish that my congressman Heath Shuler had your intellect and courage.

Excellent, Tom! Please keep speaking, writing and running for office. We need sane thinking like yours to be heard over and over again. We, here in California, have to pay for the greed of those in office and the idiocy of those who voted for them. Still wish you were our Governor, but perhaps you are where you can do most good for our country.
It’s not the global warming climate change we need to worry about, but the dangerous climate of change toward Socialism which we are witnessing rapidly taking place. Cap and Trade along with neighborhood watch policy is nothing but a page out of communist practices done elsewhere for ultimate control.
We, all of us together, need to make sure our voices are not silenced. Twitter and Blog on!

Why do I have to pull Tom's website up to see this? Why isn't it front page news or 6pm broadcast? Not many in this country has much of an idea of what these people are doing. And I blame Republicans as well for their silence. They should get on the air somehow. We are in trouble.

The last eight years of the Bush/Cheney administration should have proven to anyone that Republicans run business and the government into the ground. Bush/Cheney trampled our constitution, using 911 as justification. Some innocent people have been imprisioned without due process for 7 years. For some, this is OK because they are not the one imprisoned.  It is not OK.


Perhaps most can agree the federal government and the State of California are in deep trouble. But please examine the true facts. Bush deregulated the mortgage industry and others. The end result was greed gone wild. Brokers, lenders, appraisers worked in concert to fashion shakey loans and people forgot to live within their means and save for a rainy day. We are participating in 2 wars we cannot win. The Russian failure to conquer Afghanistan should have been an example, but nobody tromps the USA. The  Iraq war was ill begotten from the beginning with lies from our own CIA. Thousands of our decent young Americans have given their life for an administration that should be prosecuted for war crimes. Our federal deficit is as high as it is because of the Wars!


In California, another Republican and an 'actor,' is runnning us into the ground. He's used his blue line pencil to cancel medical insurance for millions of CA children who don't qualify for MediCal and cannot afford individual policy premiums. He's cutting public education, causing teachers to be laid off, the DMV is open 3 days a week ONLY, disabled, blind, handicapped people are having their in home care cut and much more. B ut don't raise taxes! Remember, the measure of a civilized society is how we treat our sick, poor, disabled, veterans and elderly.


On a recent trip to New Mexico to obtain medical care, I had the chance to chat with a large man from Texas. He told me the rest of the world is hoping California falls off the cliff never to be seen again. Well, outside of his obvious ignorance, it seems the rest of the states are clicking their heels about our 'depression.' The next round of elections  will remove the representatives who have failed us miserably. Then we can get back to business and turn this depression around.


I encourage all to at leaset listen to the medical reform bill. What can it hurt? Ask yourself why they don't want you to hear it and understand what it could do for you.

I was happy to receive and review a copy of Tom McClintock's Cap and Trade speech on June 26, 2009 before the House of Representatives who were deliberating on HR 2454; I agree with his statements and conclusions. Clearly the story of similar negative legislative actions in California can also be seen Europe and Canada. Do we truly want this to happen across the United States and the rest if the free world?

I watched in dismay and utter horror on the performance of Representatives Henry Waxman & Ed Markey and the majority of Democrats that sang the praises of this proposed, flawed and unread HR 2454 legislation and in its passing with a razor slim margin.

Late in the Houses deliberations, it was discovered that over 300 additional pages of pork filled legislation was crafted by dark of night and added to the proposed legislation's nearly 1000 pages at 3:09 a.m. on the morning of June 26th. The additional pages were not integrated into the master document nor were they read by the majority of the representatives deliberating this massive energy tax bill. I believe this bill is the wrong bill, at the wrong time and in the wrong form to be voted into law.

During the closing arguments, Minority Speaker Bonner, over the objections of Mr. Waxman, was able to surfaced a significant number of unclear and unchallenged negative issues contained in the 300+ page addition that all or most had not read or discussed. In addition, several areas in the other nearly 1000 pages of legislation left place holders for to-be-crafted other addition. THIS IS NOT GOOD LEGISLATION IN THE MAKING!!

If this is our legislature in action, it is no wonder they have such a low approval rating in the eyes of the people. Eventually, even with significant changes, all of America will rue the day if the Senate passes this troublesome bill and it is voted into law.

This is probably the most profoundly negative bill that has been introduced in the House of Representatives. I believe it will have an unbelievably negative impact on the United States economy and that of the free world.

THIS BILL MUST BE KILLED IN THE SENATE BEFORE IT PRODUCES ALBATROSSLY NEGATIVE IMPACTS ON OUR SOCIETY AND THAT OF THE WORLD WHILE PRODUCING ONLY MINOR POSITIVE SOLUTIONS TO TRUE ENERGY CHANGE OVER THE NEXT FEW DECADES.

How could these people consciously pass a bill of this porportion,without even reading it,its utterly absurd!
At all costs,these corrupt traders must be expelled from office.
Remember the 700 billion T.A.R.P.They did'nt read that either,see how we benifited from that one.They make me sick.I cant even stand looking at Ried & Pelosi.They got to go!!!!!!!!!!!!

Please, Please, Please -- everyone send this information to your Senator. Maybe we can STILL defeat this legislation!

Thank you, Tom, for being a voice of reason.

Tom, I voted for you when you ran for governor. So did both of my children. We believed then, as we believe now, that if you had been elected governor of California, the state wouldn't be in the financial mess we now find ourselves in.

My question to you is this...are you going to run for President in 2012? We'll need you!!!

"levotb" has it pretty much right. Logic and reason have "left the building." I wonder who will be poised to take advantage of this "collossal blunder to be?"

I congratulate you again, Tom, on your insight into what the Congress Critters are doing to our beloved country. Please continue to stand for truth and righteousness in these dark days. You have become a shining light for us in CA. and the rest of the USA. Jack and I are supporting you.
The Cap and Trade bill is going to be worst economy-breaking mandate that we have seen.
Keep up the good fight for our nation.

I always thought Mcclintock would have made a good governor. But voters wanted a movie star

I'm afraid we haven't heard the best part! Wait. There's more! We will all be issued a monthly carbon footprint allotment. Every-time you purchase gas, or electricity, etc. the impact of that purchase will be deducted from your allotment. At the end of the month, if you are close to exceeding your allotment, your friendly utility or gas pump will not allow it! The age of SOFT TYRANY has commenced. Somebody has to tell Mr. Franklin that, when it came to the Republic, we managed NOT to keep it.

So very scary - please keep being truthful - we the American public need someone to speak clearly and bravely out of ONE side of their mouths. We are on the road to destruction and the halo around Washington will soon turn into horns before everyone realizes the scam being perpetrated upon us. Thank you for the honest evaluation.

So what was Rep. Mary Bono-Mack's excuse for voting for this horrific bill? We all need to call her office and inquire (Palm Springs 760-320-1076 or Hemet 951-658-2312). My God, there was a 7-point difference in this vote; just count the republicans who sold us out! Tom McClintock is doing his best to make a difference, now let's honor his efforts by doing our part. CALL!

Excellent, Tom! Please keep speaking, writing and running for office. We need sane thinking like yours to be heard over and over again. We, here in California, have to pay for the greed of those in office and the idiocy of those who voted for them. Still wish you were our Governor, but perhaps you are where you can do most good for our country.
It's not the global warming climate change we need to worry about, but the dangerous climate of change toward Socialism which we are witnessing rapidly taking place. Cap and Trade along with neighborhood watch policy is nothing but a page out of communist practices done elsewhere for ultimate control.
We, all of us together, need to make sure our voices are not silenced. Twitter and Blog on!

p.s., clarification - when you said "a negligible factor in global warming or climate change", I'm assuming you meant the climate change that's now occurring, rather than climate changes from before the Industrial Revolution.

For a different perspective, read Paul Krugman's “Betraying the Planet”. It's powerful.

> Let’s ignore the thousands of climate scientists and meteorologists who have concluded that human-produced greenhouse gases are a negligible factor in global warming or climate change.

Meteorologists are experts in weather, not climate, so let's put them aside for now. Mr. McClintock, how many **climate scientists** do you think have concluded that human-produced greenhouse gases are a negligible factor in global warming or climate change?

I know this is going to sound extreme and unbalanced or un-considered. I have a mantra - "All things make sense. So, what sense do these things make?" It's usually a good idea to take facts into consideration when applyuing the mantra, and to challenge any assumptions made over and over again.

Well we have a lot of facts at this point. Among the largest spending and taxing increases in our country's history, and passed quickly without time for cursory review. Or even material for all to review. And more coming. Deficits that were too large, are now exploding, and are doing so mainly due to new discretionary spending and program expansion. Executive, Legislative, and Judiciary branches that ignore the rule of law. Debt and currency growth levels that at no other time in human history have not resulted in significantly eroded currency valuations.

What sense do these things make? The charitable among us presume that our current political class in power simply need additional education for them to make a better, more correct choice. I no longer believe this to be the case. Rather, I am putting forward the notion that perhaps the current power class actually knows exactly what they are doing, and have no more complicated an intention than to bring our nation to its knees. In other words, they do what they do not because they love our country, but they hate it.

Action is required PRIOR to the next elections.

Rep. McClintock, you are absolutely correct. This is a very scary situation. Do the Democrats actually hate America that much? I becoming convinced that Obama does and that he is a total Socialist--or worse. Let us pray that the Senate can stop this thing. I was encouraged to see that a number of Democrats in the House voted against the bill; perhaps that will happen in the Senate. KEEP TALKING! THE PUBLIC NEEDS TO HEAR THIS MESSAGE. Thank you.

Jane Lokan
Former Oregon State Representative

All I can say is the winter cleaning starts in November of 2010
We must vote out all of Obama's close ailes. Here is California
we need to get rid of all the Communist Ass Clowns in Sacramento and in D.C.

God Help Us all,for we can't even help ourselves.

Come 2010 hopefully we will have more representatives like you in the House. Keep the faith!!

I honestly believe there are alot of politicians in Sacramento and Washington DC who want to see and end to this country. This includes some Republicans as well as Democrats (a number of Republicans voted for this). The next thing you know there will be a vote to abolish the Constitution. Scary times!

[...] Vu All Over Again Jump to Comments Representative Tom McClintock (R-California) warns: Cap and Trade is the Biggest Economic Mistake Since Herbert Hoover. I had a strange sense of Deja Vu as I watched the self-congratulatory rhetoric on the house floor [...]

For a different perspective, see Paul Krugman's latest column in the NYTimes, Betraying The Planet -
nytimes.com/2009/06/29/opinion/29krugman.html

Funny how in other Democratic nations around the world, the citizenry , when screwed over by their representatives, Boo those representatives wherever they see them. Americans, however, shake their hands.

Bravo Tom. Keep it up.

We have been supporting you for years now and we linked to this speech as need to know news at our website. You are one of the only shining stars conservatives have left. Thank you and keep up the good fight.

Good job Tom, you are doing good things for our Country. Please run for Governor.

Fabulous!

Were there more folks listening, this abomination would not have passed the house. All that is left now is faith that the Senate can stop this.

The only problem is not only does congress not read the bills someone writes, no one there is listening either. Guess we'll find out about the hidden gems later. BTW, Tom, I'm sorry I voted for Arnold instead of you. That was a big mistake I didn't make again.

That's a "duh!", SanDee! That's what the Socialists and Communists in the Demorat Party (I include the leaders) want--the end to America, a wussified nation and that, as eunuchs, we'll have to put our collective tails between our legs and agree to a EU-style North American Union.

Cap & Trade = Tax All Trade

just an excuse to monitor & tax everything.

Tom you are right on the money! Why can't people see this dangerous situation for what it is?
I can't stand to watch the theatrics in both State and Federal government. It makes me sick.
Our great country is going down the drain morally and fiscally.

Unfortunately Tom I think you might as well have been, as my mother used to say, talking to the wall. The libs and democrats have declared war against what made this country great--and I fear they are going to win. Our country is being destroyed from within and half of the population is too stupid to see what is happening or just don't care. It may be that when, in a few years, their electric bills have gone from $200/mo to $600, gasoline is at $12/gl, and a gallon of milk costs $9.00 (assuming cows haven't been made illegal because they produce too much methane) they'll realize what they let happen, but by then it will be too late. God save us from ourselves....please!

We have reached a "sad and sorry" state for the current administration is so destructive to the American way and culture is physically makes one ill. How can Americans watch Pelosi, Reid, Frank and Obama trade the American values and morals into a European Socialist state? Apathy breeds contempt. Adios to America, I put up a valiant fight...

Krugman, Betraying the Planet -
http://www.nytimes.com/2009/06/29/opinion/29krugman.html?partner=rss&emc...

Some people will have a whole lot to answer for.

I am glad someone is speaking up about this bad bill. Thank you Tom.

On the money, Tom. Keep speaking the truth and speaking it well. That's a great part of what leadership is all about. In the end we'll win; I have no doubt.

We need another Sir Edmund Burke to engage the forces of oppression and anarchy and to call the the preservation, the conservation of the best principles that made and sustained our great nation for 200 years - now almost lost through the foolishness of radicals bent, like those in the French Revoluiton, on the destruction of all that was to institute what they think could be only to find they have cast out one demon to invite 1000 to take his place.

I watched this on TV while it was happening and once again I was dumbfounded that anything like this would even be considered. I do not remember who the Republican representative was that was trying to explain what and who this would affect, but he did a good job and there isn't anyone it won't affect. And it did not matter it passed anyway. I had to stop watching when Nancy Pelosi got up there with her smug look..is she trying to ruin our country?