Wednesday, October 22, 2008

10 Year Plan?

Just so I'm clear on this, I want to see it typed out. We should not drill for oil here because it could take 5 to 10 years for the results to make a difference in the marketplace. I'll put aside the fact that people have been screaming to increase domestic production for over a decade, rendering the first objection laughable.

If Obama is elected, he has a 10 year plan to reduce our dependence on foreign oil. Hmm. Assuming he is elected, and then re-elected, he can steer policy for 8 years, if my recollection of civics holds up. Oh, wait, click on the link to go to his page, and...yep, his policies will guide us to 2050.

Sooo, if we dispense with the bullshit, and look at the short term things he wants to do vis-a-vis energy policy, we see 3 items. Windfall profit tax, cut speculation, and release some oil from the Strategic Reserve.

  1. Ok, put a windfall tax in place on oil companies. Like any smart business, they will pass the cost on to their customers. Thanks!
  2. Speculation drives markets to their final price quickly, they don't determine price. See Econ 101. Sounds good and populist, though, full style points, but none for substance.
  3. A release from the reserve would be a small tick up in supply, but as it would have to be replaced, it's a zero sum game. Well, that's not quite right. The oil that would refill the reserve would be bought at a substantially higher price than the oil it replaced. Net financial loss, but we get to feel like someone cares.

My wife and I both work for nonprofit social service entities, so on a personal level, these policies would enhance our job security. What will they do for you?

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