Alan S. Blinder: The Carbon Tax Miracle Cure - WSJ.com

BLIND IS BLINDER: Alan S. Blinder: The Carbon Tax Miracle Cure - WSJ.com

Let's hope Blinder's 'free lunch' gets some exposure to show how weak and counterproductive Democratic economic policies are. (Not that Republican support for ethanol or farm subsidies is any different.)

Supply and demand works to equalize the 'economic utility' values of each member of the economy with the resources available.

Right now we have major distortions in the economy (which Obama's administration has made vastly worse both in extent (entitlements) and future headwinds (higher taxes or inflation to handle the debt). Blinder like Obama believes there is a free lunch - i.e. what you take from one place doesn't hurt another.

As seen in the effective 20% unemployment rate in the US, the 'taking from another' is pretty obvious - we are sacrificing American jobs at the altar of entitlement.

Blinder's plan would shift resources but it would not create resources out of thin air as he postures. Rather, it would reduce the benefits of lower cost energy with overpriced energy.

Reducing carbon dioxide and other pollutants may be important; but, is it 'that' important that it should distort the economy - because, once the price of any item goes up (e.g. energy), there will either be less of other things or their price will rise.

(More and more people are talking about the necessity of dealing with over-spending and under-rewarding, Mark Faber even goes so far (recent Barrons Roundtable) of suggesting a major war.)

Wouldn't it be better to focusing on growing the economic pie with supply/demand pricing rather than all these economic distortions? Blinder will only create more distortion and a smaller economy.