The Republican platform, in the age of The Green New Deal, is perfectly placed to answer Democrat’s wanton climate policy with a market-based solution. The Green New Deal is simply not sustainable. It fails to fully back FDR style, large-scale infrastructure projects, the central component of The New Deal, while leeching from the economy too much capital and cash in an already over-crowded spending regime. For several decades to come, the Democrat Party Platform has no room for the sensible, market-based climate solution of the financialization of and investment into climate solutions.
Is climate change real?
Those against the notion of man-made climate change make fair and valid points. We cannot go tearing down Cities for climate change, which does not yet have adequate historical temperature coverage to fully acknowledge a lasting problem. There are, however, observable phenomenon that suggest our climate is changing, though the change cannot and should not be blamed on mankind, as Democrats would have you believe.
Water levels are rising. For me, in my home town of Erie, Pennsylvania situated on Lake Erie and home to one of the Nation’s best State Parks, water levels are clearly rising and straining local resources. Presque Isle State Park is designed as a bay with developed shoreline all throughout. A combination of State and Local resources recently went into patching retaining walls across the whole inner ring.
If the water table continues to rise in cities across the world, local resources could be strained. A market-based investment solution, able to leverage public-private sources of financing in support of “climate collateral,” is a flexible solution. But the Democrat notion of “Carbon Credits” is simply not a workable policy solution.
We believe that a more elegant solution can finance “climate collateral” impact zones such as Presque Isle State Park. The traditional carbon credit scheme sought to financialize offsetting mechanisms such as the planting of trees to neutralize carbon emissions. The Democrat approach penalized those deemed as corporate polluters, then allowed penalized businesses to redeem their climate impact through the purchase of carbon credits. Obviously, such a ridiculous policy never got off the ground.
The Democrat approach, in addition to being a significant Government over-reach, fails to actually develop a market-exchange for the trading of “credits.” However, the notion of a financial market-based approach to solving climate collateral has merit, though it cannot simply be a ‘cap-and-trade’ style taxation of perceived climate change causes.
An alternative approach has approximately four steps:
- Establish a market exchange for the purchase and trade of climate collateral equity.
- Solicit investment from public-private sources of capital including every day Americans to seed the climate collateral trading facilities. Trading facilities are speculative and tradeable equity into climate collateral projects.
- When Governments at all levels need financial resources and investment to mitigate and resolve climate collateral damage, they can purchase equity from the market-exchange. This equity acts as a tradeable security which can be discounted through Government expenditure. In other words, a Government would purchase climate collateral equity and when climate collateral damage occurs, Governments can sell their project-based equity for the cash necessary to shore-up the climate-induced problem.
- Governments and the private sector can overlay investment into the capital markets system to ultimately discount the expenditures needed by Government.
If Governments were investing in a new technology as a venture capitalist we would want to see Governments receive a high return on investment. So too should we view Governments as they invest in climate collateral damage. We would also want the ability to discount Government expenditure without other Governmental sources simply paying for damage with pass-through grants that will lead to a greater propensity for fraud, waste, and abuse. In our market-based approach, Governments reap the return on investment of an early stage investor, with a limited authority to only reinvest in climate collateral damage.
The Green New Deal is both politically doomed to failure and economically doomed in the post pandemic economy. Simply put, Government has now already spent its fortune, largely in concert or led directly by Democrat lawmakers. Governments at all levels of the United States are becoming increasingly bankrupt due to a hybrid of coronavirus related expenditures and existing obligations in the form of entitlements, budgetary mismanagement, and excess. The United States Federal Government can simply no longer afford The Green New Deal even in its watered down format.
Now is the time for the Republican Party to acknowledge climate collateral damage and answer The Green New Deal with a more appropriate and time-sensitive solution. However, the United States cannot ever accept that climate change is man-made. Doing so is a great insult to the workers of the world who are now maligned for simply doing their jobs in the great mining, energy, and manufacturing industries that have achieved ever increasing wealth and prosperity for the world. Their hard work should not be used as a political cudgel to increase Government spending and subsequently require these same people to pay more of their hard-earned money to salary the Government official.
Now more than ever, the Republican Party must seek private sector and market-based solutions to growing regional and global problems. The Republican Party should not shy away from addressing climate change simply because Al Gore made a movie promoting a bad policy agenda. But thankfully, the Republican Party has stopped the ridiculous notion that hard working men and women across the world are responsible for climate change because of their industry. Climate change is not the fault of the worker!