The statement today by Senator Dick "The Turban" Durbin that "we can't drill our way out of this..." is partially true. If we don't have the refinery capacity to produce the gasoline from the crude oil, that statement is true. I don't care how much crude oil you pull out of the ground, if you can't refine it into gasoline, you may as well leave it in the ground. We have not seen a new refinery built in 30+ years. You can thank the Turban and his enviro-nazi wackos for that. The propensity for the extreme left to dictate economic policy that puts mainstream Amercians in a budget busting situation by increasing the price of everything we use is well documented. Looking back, you'd think they'd planned it that way.
Dr. Thomas Sowell has a piece today that puts this in perspective. Here are a few observations from one of the smartest men I've ever read:
If corporate "greed" is the explanation for high gasoline prices, why are the
government's taxes not an even bigger sign of "greed" on the part of politicians-- since taxes add more to the price of gasoline than oil company profits do?Whatever the merits or demerits of Senator John McCain's proposal to temporarily suspend the federal taxes on gasoline, it would certainly lower the price more than confiscating all the oil companies' profits. But it would not be as emotionally satisfying.
Senator Barack Obama clearly understands people's emotional needs and how to meet them. He wants to raise taxes on oil companies. How that will get us more oil or lower the price of gasoline is a problem that can be left for economists to puzzle over. A politician's problem is how to get more votes-- and one of the most effective ways of doing that is to be a hero who will save us from the villains.
While economists are talking supply and demand, politicians are talking compassion, "change" and being on the side of the angels-- and against drilling for our own oil.Has any economist ever attracted the kinds of cheering crowds that Barack Obama has-- or even the crowds attracted by Hillary Clinton or John McCain?
If you want cheering crowds, don't bother to study economics. It will only hold you back. Tell people what they want to hear-- and they don't want to hear about supply and demand.No, supply and demand is not too "complex."
It is just not very emotionally satisfying.