Let’s just hope we’re not too late The Middle East once again on fire, a barrel of crude oil again exceeding $100, and Iowa gasoline prices again averaging $3.66 per gallon with $4.00 looming in the not too distant future. Obviously, it won’t be long before political voices will once again echo the call to “drill baby drill.” If you recall, during the 2010 midterm elections, the American people were demanding that gasoline be produced from domestic oil supplies, and there wasn’t a single candidate on the “right” in disagreement. Once the election was over, however, and oil prices dipped below $100 per barrel, and gasoline prices beneath $2.75 per gallon, the voices of protest became silent, from voters and politicians alike. With the 2014 midterms now officially off and running, the roller coaster ride is beginning to cycle through once again, and oil will no doubt be sitting somewhere amongst the pile of issues the candidates will be discussing. They’ll all be telling us how we “need” to utilize the vast amounts of oil reserves on American soil and just off its shores. How we “need” to construct the Keystone-XL Pipeline, and how the Alaskan wilderness ‘needs’ to be explored and its black gold allowed to fuel the engines of American commerce. They’ll most assuredly tell us how, under their leadership, oil will once again flow from beneath our feet, and how the need for Middle East oil, and all that comes along with it, will either go away, or no longer be necessary, if only they be elected. Sounds good, doesn’t it? Yet, how many times have we heard this story from those hoping to lead this nation or represent us in Washington? Once the elections are over other things always seem to take precedent over that which politicians so diligently campaigned upon. “It’s the economy, jobs and national security,” they’ll say, without ever providing a plan or admitting that oil and its price are what influences everything we buy, wherever we go, and the security of this sovereign nation. Rather, they seem to be hoping that the sound bites and talking points they continue to offer will pacify us until the next election, where yet another promise of energy independence, economic stability, and jobs for all will once again be leading the charge. You’ve heard it already, and so have I. Wouldn’t it be great if it were as easy as the politicians made it out to be? That all we had to do is somehow tell someone that we’re not going to buy any more foreign oil, and effective immediately, we’re going into a “drill baby drill” and “refine baby refine” mode? Yes it would, but unfortunately, not quite that easy. First of all; oil producing companies and refineries are not owned by the federal government with an endless supply of operating capital that can be turned on and off with the flip of a switch. They’re privately owned companies in business to make a profit, just like yours and mine. There are also “fixed” costs involved other than just the machinery and labor necessary for production. Some of the largest fixed costs that stand in the way of oil being produced domestically, even if the government would allow drilling, is something the politicians very seldom, if ever, talk about—and that’s the taxes, regulations, fees and licensing agreements that are related to the drilling and refining processes that our federal government, which includes politicians, have a vested interest in making sure never go away. That vested interest? Votes and money! There isn’t a single thing we do that isn’t adversely affected by the high price of a barrel of oil, which clearly rests on the backs of those whose appetite for power, and a gluttonous and out of control government happens to be the only reason their form of government exists. They believe that consuming the profits of American companies, their employees and citizens alike, not only keeps the wheels of a runaway entitlement train well-greased, but also places the responsibility for providing it squarely upon the shoulders of a predetermined chosen few. As Karl Marx one said, “From each according to his abilities; to each according to his needs.” Politicians know all too well how taxes, costly regulations, fees and licensing agreements do little more than feed the beast, and how American companies haven’t the option to pass those costs onto the consumer, because the price at the pump, or that of anything else for that matter, would greatly exceed that which the public is willing to pay, thus encouraging them to seek out foreign lesser expensive brands. So rather than politicians taking up our time with meaningless rhetoric geared toward competing with “Yes, we can,” let’s challenge them to explain, in detail, just exactly what their plan is for empowering the oil companies to “drill baby drill,” and “refine baby refine.” While they’re at it, they can also tell us exactly what their plans and solutions are for getting our economy back on its feet and our jobs back home where they belong. Rather than join the political hypocrisy, I’ve taken the time to construct a plan that: Keeps thousands of taxpayer dollars in the pockets of those that have earned them Cuts $1.2 trillion in spending Encourages college students to pay off or pay down their student loans in three years (and with their money not ours) Keeps the much needed capital that new businesses earn in their first two years in their hands, rather than that of the federal government during a time when they need it the most Puts power back in the hands of employers with a plan whereby their federal tax rate is reduced from 37% to 15% empowering them to compete more efficiently with hundreds of billions of dollars of their own money to invest in new machinery technology and facilities, while creating more than 5,000,000 new jobs Promotes regulations based on common sense rather than the financial appetite of an overfed federal government, and… Makes fees, licensing agreements, and penalties for being successful a thing of the past rather than the way of the future We clearly have a choice to make. Either we take control of our destiny and begin reducing the size of this out of control government, or we continue down the road toward an economic national disaster unlike this nation has ever seen. The decision isn’t solely mine, nor is it solely yours. It is a decision we, as Americans, must make together. Learn all that you can about those that are currently representing or hoping to represent you. Ask real questions. Demand specific answers. Then, and only then, make your choice. Let’s just hope we’re not too late. steverathje/news/steve-rathje-energy-the-economy-and-solutions.html
Posted on: Fri, 06 Sep 2013 19:46:49 +0000