Big Red Car here. First, let me admit right up front, I have a drinking problem. I drink gasoline. Regular when I can get it. But, yes, the Big Red Car has a gasoline drinking problem.
One of The Boss’s favorite songs is Pancho & Lefty sung by William Nelson and Merle Haggard. Favorite line — “breath as strong as kerosene” — will catch your attention.
So The Boss says here’s the thing — absent a coherent energy policy the price of gasoline is tantamount to a tax on prosperity and the American people. One we don’t talk about but a huge tax.
Historic gas prices
Look at these historic gas prices. They have been on the rise for the last 4 years.
There are a several things worth noting:
1. High gasoline prices are arguably a mark of entering a recession while low prices are a telltale sign for departing a recession.
2. What is not as obvious is that the decrease in the cost of gasoline during a recession is tantamount to a tax decrease for the entire country. Think about it. This lowered level of “taxation” — putting more money in the pockets of taxpayers, big companies, small companies — is part of the solution.
3. When times are tough, consumption declines and supply soars — demand down, supply up, prices down. More money in the taxpayers’ pockets. The taxpayer spends our way out of the recession.
Energy policy — the benefits of a coherent strategy
If we can cobble together a national energy strategy which results in a dramatic reduction in energy prices, then the resulting “tax reduction” will likely spur economic growth and serve to expand the economy because more money will be available for private sector growth and retail consumption. Growth requires spending and spending begets more growth.
What specific policies should the Nation be pursuing?
The obvious answer is — those policies which will increase supply thereby reducing prices and creating a tax cut for all thereby spurring growth. And, yes, increased mileage on new cars and conservation should be part of the policy mix.
Whoa, Big Red Car, you are going to have to be more specific than that, please.
OK, you asked for it:
1. Increase the production of electric power from nuclear energy thereby supplanting hydrocarbon based electricity production;
2. Increase drilling on both governmental and private lands by conducting timely auctions, awards and permits;
3. Increase drilling on offshore prospects;
4. Increase distribution of Western Hemisphere continental lands — that means build the Keystone pipeline and get as much oil as can be gotten from Canada and Mexico;
5. Increase domestic refining capacity; and,
6. Promote the plan — get some cheers going FOR energy. Someone has to lead the cheers FOR a coherent energy policy.
Other good things that will happen
If all of this is done, the following results will be attained:
1. The price of gasoline will decrease because supplies will increase creating a bonanza for the taxpayer. Again, conservation and increased mileage standards are part of the solution;
2. The national security issues of having to maintain a “pipeline” to the Middle East will be dramatically lessened — no more blood for oil — maybe even a bit of a defense dividend;
3. Jobs — gobs of jobs — will be created and filled and more taxpayers will be created. More taxpayers means more tax revenue — not returning to former levels, accelerating past those prior levels; and,
4. The economy will grow and grow dramatically.
Simultaneously with this will be the opportunity to engage in a bit of honest dialogue as to the efficacy and efficiency of faux energy strategies which promote costly programs like solar and wind energy. These programs do not provide cost effective results. Sorry, but your butt does look as fat as a house in that dress!
But, hey, what the Hell do I know any? I’m just a Big Red Car.