Saturday, May 10, 2008

Energy Policy

Is it possible that Democrats REALLY don't understand economics? Or do they figure the average American voter doesn't?

http://news.yahoo.com/s/ap/20080510/ap_on_go_co/democrats_energy

The energy policies advocated by Democrats are nothing more than scare tactics. The evil Bush-Cheney-Halliburton-Saudi-Big Oil conspiracy stuff is wearing thin. Fact is, there is plenty of oil under US soil, but the Leftys won't hear of tapping it. They're under the spell of the far Leftist enviros who have an agenda to do something....I'm not sure what. But I can tell you for certain that their agenda will destroy the US economy far worse than the weakened dollar has.

I can't post the article here, because I can't find it anymore, but it points to evidence that the weak dollar is the culprit in high oil prices. The value of oil as related to gold has not changed. They track very closely. With respect to the dollar, both oil and gold (and many other commodities) have skyrocketed. This tells me that the problem is not scarcity of resources, but weak dollar policy and speculation. The dollar is weak, so money must be placed elsewhere.

The very idea that taxing oil companies is somehow going to help the consumer is ridiculous. Taxes are a cost of doing business and raise the price of goods and services. Further, the idea of forcing energy companies to use part of their profits for "renewables" is shortsighted. Renewables a) don't and can't work (do the math. It's simple physical laws) and b) require vast amounts of energy for their development and produce vast amounts of toxic waste at their end of useful life.

In the words of the revered poetess, "Dis sh-- is bananas, b--a-n-a-n-a-s".

1 comment:

DaveA said...

The problem is not that supply and demand is such a complex explanation. The problem is that supply and demand is not an emotionally satisfying explanation. For that, you need melodrama, heroes and villains.
Quoted from Thomas Sowell.
He explains it very well here.
http://www.townhall.com/columnists/ThomasSowell/2008/05/15/too_complex_part_iii?page=full