“How Climate Change Affects Your Money”
Ty J. Young Editorial
Climate change itself has no impact on your money – zero percent. But the business of climate change has a massive impact on your money and the economy. Ironically, “climate change” is a deceptive characterization. The climate changes all the time. Scientists previously referenced the problem as global warming. Since the data suggested we were no longer warming, the media reference was renamed “climate change.”
Climate change is defined as “the statistical distribution of weather patterns when that change lasts for an extended period of time (i.e., decades to millions of years). Climate change may refer to a change in average weather conditions, or in the time variation of weather around longer-term average conditions (i.e., more or fewer extreme weather events). Climate change is caused by factors such as biotic processes, variations in solar radiation received by Earth, plate tectonics, and volcanic eruptions.” In other words – the definition is broad. Certain human activities have also been identified as significant causes of recent climate change, which was formerly referred to as global warming. Human activities means the use of carbon fuel sources – oil, coal and gas products.
From the scientific definition above, climate change is normal and is always happening. Global warming, however, may affect climate change and may be caused by human activities, but the facts seem to refute that argument:
I) Climate Change Facts:
1) Less than 1/2 degree of warming has been registered since 1979. According to NASA’s data via Remote Sensing Systems (RSS), the world has warmed only 0.36 degrees Fahrenheit over the last 35 years (They started measuring the data in 1979).
2) Polar Ice Caps are not shrinking, but INCREASING in size. NASA satellite imagery shows a 43-63% increase in the polar ice caps over the same time frame – see below.
3) The bulk of the temperature increase of 0.36 degrees occurred between 1979 and 1998. Since that time, the temperatures have actually been falling! We have not seen any official global warming in 17 years, and many scientists are skeptical that any warming would be man-made in the first place. The earth is 1.08 degrees cooler since 1998!
4) Scientists who support the theories of global warming are many of the same scientists who believed we were facing a new Ice Age in the early 1970’s. Many publications, such as Time Magazine and Newsweek, published scientific articles suggesting 30 years’ worth of cooling temperatures was leading the Earth to a new ice age.
NASA’s Remote Sensing System Temperature Variations 1998-2014
II. Climate Change Policy Supporters:
1) Ideological supporters: Those who simply have a religious belief in global warming. They oppose the wrongful use of carbon-based energy, such as fossil fuels – like gasoline, natural gas and coal. Basically, they are opposed to every form of energy that powers your everyday life.
2) Business supporters: From cap and trade to carbon tax credits to government loans and handouts with taxpayer money – to failed companies like Solyndra – there is big business and money to be made in supporting climate change policies. Sadly, the majority of that money to date is funded through the government (tax dollars are being spent instead of private sector investment). One of the primary drivers of this group is former Vice President Al Gore.
3) Government supporters: Government supports advancing the cause of global warming, because it extends the government’s reach and control over our lives. Health care, and now energy usage, are coming under more and more government control.
So how does this impact your money directly? Tax dollars have been spent on climate change research and on failed companies advancing green technology. There are additional costs related to complying with and implementing climate change policies.
III. Costs Related to Climate Change Policies:
1) US Small Business Administration estimates compliance costs for current climate change law is projected to be between $1.75 trillion and $4.8 trillion by 2030. This is the government’s own small business lending agency telling us the costs to comply are skyrocketing for US businesses, from taxes to regulatory compliance to government spending and much more. These costs impact your investment in these companies, since their profits are lowered and, in many cases, they will fold and close up shop.
2) Lost jobs in the energy and manufacturing sector. Job loss taxes the social welfare system, increases crime, and drags on economic growth. Slowing growth leads to job loss elsewhere in the economy as well – this affects your income and your investments.
3) Carbon taxes, other taxes, going up. Energy costs will rise, and taxation will increase as well to enforce lower energy usage or drive you into alternative energy sources. Once again, more money out of your pocket, and out of your portfolio.
4) Negative impact on markets and your portfolio. The stock market is a market of stocks, which may be in your portfolio. Stocks represent companies. These companies may be affected negatively by the climate change regulatory intervention of the government. This means the stock price can be negatively affected. Therefore, this can mean negative consequences for your money.
Your money is being impacted whether there is such a thing as man-made global warming, which is now referenced as the constant and ongoing problem of climate change. Climate change can have a negative impact on your investment portfolio, due to taxes, regulatory compliance, government spending, increased energy costs, or simply lost business opportunities. Finding the right investment strategy protected against these negative impacts on the market is a strategy one should consider today! 877-912-1919.
(Peter Gwynne (April 28, 1975). “The Cooling World”. Newsweek)