The U.S House of Representative just passed a bill that will address global warming by reducing the emission of gasses that cause climate change. It was a watered-down bill that passed by 219 to 212. The bill will face a tougher fate in the senate.

If passed by the senate, the bill will change how the United States produces and uses energy. It will begin to address the issue of climate change and position America to regain a leadership role in the matter.

The legislation will use a cap-and-trade system to place a limit on U.S. emission of greenhouse gasses. It will issue permits to manufacturers and allow them to trade on the permits. Over the years, the permits will be reduced. This will increase the price of emissions and force the industry to explore cleaner energy alternatives.

Of course, there are oppositions to the bill. Forty-four Democrats mainly from manufacturing states and coal producing states opposed the bill. Only eight Republicans supported the bill. Several environmental groups think the bill is not strong enough. But they acknowledge it would not have seen the light of day under a Republican administration.

The Republican opposition ranged from the denial that there is any proof that greenhouse gasses cause global warming. There are others who interpreted the bill as just another tax on Americans. The usual Republican crowd chanted that it will destroy the American industrial base and force American companies to move abroad where there are no such limitations.

For many years, the American car industry lobbied against any attempt by government to impose an improved fuel efficiency level. They made these kind of arguments the Republicans are making about this bill, saying that the free market will take care of things. At the end, it was the foreign car makers who produced energy efficient cars and knocked out American cars.

In Europe and Australia, cap-and-trade system has been in place for many years now. The Europeans are already in the lead in producing energy efficient products. If America continues to drag its feet, America will be left behind in the little manufacturing base America still has.

What is interesting is that America is the most innovative country in the whole. When challenged, America answers loudly. The people who oppose challenging American businesses seem not to have the confidence in America’s industriousness. As we have seen in recent months, the free market needs guidance or else it runs itself to the ground. And when it does, it takes everyone down with it.

America is not going to be bankrupted by the cap-and-trade system. Utility cost is not going to kill American consumers. No American government will let any of this happen. The long term gain of taking action today is better than the short term pain. Those who tell you otherwise are essentially telling you there is a legitimate way to gain without feeling any pain.