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If manufacturers are motivated to move their business offshore to avoid higher domestic labor costs, I don’t see why they would not be likewise motivated to do so to avoid the domestic cost of carbon credits.  In either case, the motive comes from the need to be able to compete with foreign-based manufacturers who are not hampered by our labor or carbon credit costs.   <?xml:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" /><o:p></o:p> There are also business costs that rise from moving operations offshore, so a business must weigh that against the lower costs offshore such as labor costs.  If domestic labor costs were to rise here, it would further tip the balance in favor of moving offshore, and more businesses would do so.  Likewise, if you add carbon credit costs to manufacturing, it will tip the balance in favor of moving offshore, and more businesses would do so.   Certainly this cap and trade bill will be a powerful motivator that will result in businesses moving their manufacturing to countries which are exempt from such economic burdens.  I do agree that there are some types of business that will not move offshore because it would not be practical and/or the added cost would outweigh the savings from lower labor cost and avoiding cap and trade.  But I am sure that there is much business remaining in the U.S. that will find it economically attractive to leave, and will do so, once this new carbon credit burden is applied here.     When manufacturing moves out of the country, we lose manufacturing jobs.  When that happens, it lowers peoples' standard of living and they lower their consumption.  When that happens, it eliminates the need to transport those things that are no longer consumed.
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