BCT Editorial – 8/10/08

This page was last updated on August 13, 2008.

Winners or wimps; Editorial; Beaver County Times; August 10, 2008.

The editorial subtitle is “Are Americans ready to break their addiction to oil?”

Below is a detailed critique of the subject editorial.

“We soon might find out if Americans have learned their lesson when it comes to their addiction to oil.”

[RWC] Shouldn’t we also break our “addiction” to air, food, and water?

“The cost of oil has been dropping steadily since July 1, leading to a steady decline in prices at the pump.”

[RWC] When will Times editorial authors understand “cost” and “price” aren’t synonyms?

“A major reason for the decline is that less oil is being used. The Associated Press reported the U.S. Energy Department’s Energy Information Administration said demand for gasoline for the month ended Aug. 1 topped out at about 9.4 million barrels a day, 2.3 percent lower than the same period last year. Clearly, conservation works, and fairly quickly.”

[RWC] The editorial came to the wrong conclusion. The recent price drop showed the free market works. The market (you and I) wouldn’t tolerate $4/gallon gasoline, so we cut consumption (demand). Reduced consumption without a free market accomplishes nothing.

“Have Americans learned their lesson, or will they return to their profligate ways if the price of gasoline dips much lower? (One expert told The AP that ‘I think we need to drop another 30 or 40 cents a gallon before we really see any change in driving habits.’)”

[RWC] Ah, speaking of Americans in the third person.

“There is a way to make sure that Americans stick with conservation — taxes.”

[RWC] Yet another example of the left’s use of taxes to curtail freedom. As I’ve noted before, conservatives tend to believe the sole reason for taxes is to fund limited government, while the left also believes taxes should be used to guide behavior.

“But these taxes wouldn’t be the usual cents-on-a-gallon or percentage-of-sale kind. Instead, as Business Week magazine reported, these taxes would kick in when the price of oil fell below a certain level, say $90 a barrel.

“The magazine reports these taxes would have what it calls ‘potent virtues.’ They include:

l Cutting pollution and reducing carbon dioxide emissions, which cause global warning.”

[RWC] Please read my paper entitled “Manmade Global Warming.”

l Reducing the need for a military presence to ensure global commerce in oil.”

[RWC] How much of our “military presence” is needed “to ensure global commerce in oil?”

l Slowing the flood of dollars to the Middle East, Russia and Venezuela, which would keep more wealth in the United States instead of handing it over to often unfriendly suppliers.”

[RWC] While I’d like to keep U.S. dollars here, we’re not exactly “handing over” dollars to these countries. They get our dollars; we get their energy. We’ll be generating wealth long after their oil is gone.

“Finally, the tax revenue would stay in the United States to boost investment, especially in alternative energy sources.”

[RWC] Hmm, does anyone care to guess who would determine in which “alternative energy sources” the new tax revenue would be “invested?” As a reminder, recent editorials have whined about needing more taxes for roads and bridges. What happened to that need? This is just another example of someone who can’t keep their story straight.

Europe has had fuel prices much higher than ours since forever with much of that the result of taxes. If this is such a good idea, shouldn’t Europe have already developed the “alternative energy sources?”

“Taxes by themselves are not the answer. They could only work as part of a national energy policy that encourages increased domestic production, promotes more aggressive conservation and advances the development and use of alternative energy sources.”

[RWC] Note the editorial doesn’t mention artificially higher energy prices as a result of the price floor would place domestic businesses at a competitive disadvantage with foreign businesses.

“A policy that uses taxes to set a floor under the price of oil was impossible to implement in the past because of politics. But after having experienced prices of more that $4 a gallon for gasoline, Americans might be more willing to accept it now.”

[RWC] FYI, there are some U.S. jurisdictions with a price floor for gasoline. The floor is used to protect certain gas station owners from competition.

Just as a reminder, Pennsylvania has a price floor on milk. That’s why Giant Eagle “Gas Perks” can’t take into account milk purchases.

“This will require not only leaders but followers as well. As Thomas Jefferson wrote more than 200 years ago. ‘No more good must be attempted than the nation can bear.’”

[RWC] Actually, I believe Mr. Jefferson was quoting Solon, an Athenian statesman from around 600 BC.

I’m hardly an English expert, but I don’t interpret the Solon quote to have anything to do with needing “followers.” To me, it’s more about not trying to do that which you can’t afford to do.

“Breaking our addiction to oil can only come about if we are willing to make the sacrifices that will be needed to do so. We about to find out if we’re winners or wimps.”

[RWC] You have to love the conclusion. Follow the Times advice and you’re a “winner.” Otherwise you’re a “wimp.”

By the way, as far as I can tell, none of the vehicles I’ve seen with “Beaver County Times” on the side were using “alternative energy sources.” Editorials like this might carry more weight if they detailed the “sacrifices” made by the Times.