Forget Government—We Control Gas Prices

08/17/2005

Paul Munnis

There should not be doubt in the minds of our readers that higher oil prices are hurting our economy. A glance at ones own checkbook tells the tale in a flash. Also there should be no doubt that the recent bragging stories about the great performance of the GOP lead economy are false propaganda stories planted by the Bush Administration to help the re-election of the GOP members in Congress. There should be no doubt that damage from rising gas prices has set off a round of inflation that will be difficult to control and that will cost more jobs and may force us back into recession.

When we look at the recent Energy Bill that both political groups acknowledge was not for implementing a national leadership strategy for U.S. oil and energy, but instead was laden with pork for the energy industry, then we just shake our heads in sorrow over the missed opportunities. The Bush Administration had an opportunity to lead America in the right direction of conservation, alternative energy use, and development of renewable and sustainable energy, but they failed miserably. They listened to the siren song of profit and they missed the clarion call for social leadership.

The Bush Administration failure is not over a lack of technology. A glance at the Energy Department’s website shows there are plenty of solutions that when implemented on a mass-scale will help. The keyword here is “mass.” That is where the federal government and political leadership enters the scene. Their job is to use macroeconomics in a manner that causes people to invest wisely in meeting our national objectives. The Bush Administration missed that opportunity. They did not set or clearly articulate nor support any clear national objectives. They are still processing tax credits that they granted for purchasing SUVs.

The ironic thing is that SUV tax credits did not help GM and Ford, they are dying over a lack of fuel-efficient vehicles to meet demand. In fact they were hurt badly by the Chaney strategy. The Bushies squandered their opportunity by padding the wallets of special interest groups in return for campaign contributions. How sad that is for all Americans. Every citizen should feel cheated because we are paying plenty for this leadership and strategic opportunity failure.

With the retail sector experiencing lower revenue due to consumer reallocation needed to meet the cost of transportation, then job growth will further stall. So much for the Bush Administration entitlement to economic bragging rights. They have failed the nation and shown themselves a pitiful and hollow bunch in the process.

The initiative now must shift to the consumer and with little help from our government. We must look at energy savings options available to us in housing, commuting, transportation, energy co-generation, and dozens of other schemes available. Then we need to invest wisely. Our next purchase should not be a large screen flat-panel TV but rather a solar unit that is roof mounted and that puts the homeowner in a position to sell energy to the energy grid even as they eliminate or sharply reduce costs of home energy. Flat panel TV screens enrich Asia while energy creation and savings benefits America and does this in a strategic manner that is good for us both as individuals and as a nation.

As we look to the coming fall and winter season with as much as 25% higher heating expense it seems a good time to tighten the home and to see what public transportation is available to us while we set aside time to learn how to use it. We need to organize commuter car pools at our place of work. It is also a time to retune our budget to foster investment in energy savings for our home and families. Just replacing incandescent bulbs with low energy fluorescent bulbs can make a difference. Using online Internet technology as a way of allowing people to save gas for meeting attendance while reducing energy costs. Our “Yankee Ingenuity” is challenged to chop oil consumption and we need to rise to the challenge.

Finding ways to get kids to schools will be a major challenge as bus transportation energy costs surge ahead and school districts demand new tax levies to pay for higher gasoline and building heating.

It is also a time of added safety consciousness as we delay implementing daylight savings time here in Minnesota. Kids will be going to school and boarding busses in the dark in the morning in order to save daylight hours. That means danger for kids and is a challenge for drivers even as they back out of their driveway to go to work.

As we reduce consumption do not expect the cost of gasoline and oil to drop. Prices will go the other way.  That is because oil prices are not so much driven by supply and demand as they are by stockholder dividends and stock profit targets. We must not be disheartened by this but instead use it to spur us to even more energy conservation. There will come a time when the return on investment comes our way and we can then laugh at the cost of gasoline. In the process we will be keeping U.S. dollars at home and not shipping them off to the mid-east.

Want to beat the Arabs and their oil cartel? Then conserve oil and elect Democrats who will put our common interest ahead of special interest.