Who Pays For Cap & Trade?

Who pays for Cap and Trade? I work for a non-unionized company in Canada. I receive employment income. Who is going to pay for Cap and Trade or any of the carbon reducing initiatives? Me, and the vast majority of people who work for non-unionized profit-motivated companies.

Business has predominantly one goal and that is to create profit. This is as it should be. Competition keeps them honest. Business has revenue and cost with the difference being profit. It is universally agreed that any carbon reducing initiative is going to increase the cost of energy. Most businesses have an energy cost. Some are large and some small but all have the cost. What will business do if the cost of energy rises substantially? Due to the profit motive, business will pass on at least a portion of the added cost to the consumer. They have no choice. As an example, if revenue remains stable but cost rises 10% the business generates less profit. Assuming that competition is fierce, which it always is in a free market, there is little room to absorb the reduction in profit. The competition has to do the same.

Why do I pay for it? A hike in price of a good or service due to hike in cost is a one-time inflationary event. A hike in the price of all goods and services is a big-time one-time event. If prices for everything go up 10%, inflation goes up 10%. My employer and most employers will be reluctant to increase my wage, which is another cost to my employer. This is especially true if profit is falling. What about the unionized worker and the public service worker? They will bargain for a cost of living increase. Cost of living increases may already be written in their contract. If prices rise 10% they will get a 10% raise (and probably something on top of that). They are no worse off after the inflationary event. I am. I won't get the raise. My company will be in no position to offer CPI offsetting raises. If inflation jumps 10% and my salary doesn't, I am 10% worse off. I pay for the carbon reduction initiative.

I have a proposal. I will agree to the situation if public sector employees and unionized employees forgo cost of living increases for a certain period after the carbon reduction initiative is implemented. If so, they may not be so welcoming of its implementation. This levels the playing field.

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