First Doug Elmendorf undercut the Obama administration on health care. Now his Congressional Budget Office is going off message on cap and trade:
The CBO director added that although the risks of climate-related impacts on the economy were very difficult to quantify, “many economists believe that the right response to that kind of uncertainty is to take out some insurance, if you will, against some of the worst outcomes.”
The CBO estimates that the House-passed climate legislation, a template for the Senate version, would reduce gross domestic product by up to 0.75% by 2020 and 3.5% by 2050.
“The net effect of that we think would likely be some decline in employment during the transition because labor markets don’t move that fluidly,” Mr. Elmendorf said, testifying before the Senate Energy and Natural Resources Committee…
The country’s politics might not move that fluidly either.