Photo credit: terrellaftermath
Realizing that his popularity may decline as the price of gasoline rises, President Obama is barnstorming the country, emphatically insisting that drilling for more oil isn’t the cure for high gas prices and that wind and solar energy represent our energy future.
Republican presidential candidate Newt Gingrich recently challenged Obama, claiming that gas prices would fall to $2.50 per gallon or lower if he were president. Many Americans believe Gingrich when he says that repealing Obama’s anti-drilling policies would increase the supply of oil and push gas prices lower. In his weekly address on March 10, Obama disputed Gingrich’s assertion, arguing, “With only 2 percent of the world’s oil reserves, we can’t just drill our way to lower gas prices.”
One wonders how the president can make such a claim, given that natural gas companies are currently hurting because, in fact, they have drilled their way to lower natural gas prices. Surely this president does not believe that the law of supply and demand doesn’t apply to oil, too.
To the contrary, Obama concedes just that when he considers dipping into the Strategic Petroleum Reserve for no other reason than to lower gas prices in an election year.
When you think about President Obama’s antipathy for oil companies’ profits, you would think that he would be one of the most vocal supporters of more drilling. After all, increased production of oil would drive down prices and shrink profits. How deliciously ironic that Obama’s own anti-drilling policies are handing windfall profits to the very oil companies he rails against.
The president’s statement about America having only 2 percent of oil reserves is misleading. The size of our reserve is actually quite vast, but the percent of the world’s oil we have is far less important than the amount we produce. The United States accounts for at least 6 percent of global production of petroleum—a figure that would be significantly higher had President Obama’s party not been impeding and restricting domestic petroleum production for years.
On March 14, the president ramped up his anti-drilling argument. He employed hyperbole, asserting, “If we drilled every square inch of this country … we would still have only two percent of the world’s known oil reserves.” To assert that a massive increase in drilling would result in no increase of oil defies logic and experience. The reality is that reserves have grown year after year, decade after decade, precisely because the more we drill, the more oil we find.
The president resorted to a “straw man” subterfuge to disparage Republicans who aren’t on the “green” energy bandwagon, snidely proclaiming that they “probably would have agreed with one of the pioneers of the radio who said, ‘Television won’t last,’ or the Henry Ford associate who argued that ‘the automobile is only a fad.’” First, the comparison is inapt. Neither radio nor the Ford automobile needed government subsidies, whereas “renewable energies” have received them for years, even decades, and they still aren’t cost-effective. Second, I don’t know anyone—Republican, Democrat, or Martian—who would oppose a clean, renewable, cost-effective energy. Nobody is against “green” energy per se. The objection is to costly, taxpayer-financed government subsidies to the politically connected and to mandates that compel Americans to purchase uneconomical forms of energy.
The Wall Street Journal recently reported that the Democrat-controlled Senate defeated Sen. Jim DeMint’s (R-SC) budget amendment to eliminate every federal subsidy and tax credit to all energy companies, whether they produce fossil fuels, renewables, batteries, or nuclear power. By voting with all Democrat senators (yes, every single one) to defeat DeMint’s amendment, 19 Republicans showed that the GOP is not yet a free-market party. What chutzpah Vice President Biden showed by denouncing Republicans as the party of privilege during the very week when his own party voted unanimously to retain expensive taxpayer-subsidized privileges to corporate America.
The Obama/Biden tandem’s overstated rhetoric may backfire on them. When people don’t have the facts on their side, their attempts to ridicule others can end up making themselves look ridiculous. Apparently, the president and vice-president are betting that enough voters believe so fervently in hope, change, and other good things that facts, basic economic knowledge, and common sense won’t burst their bubble.
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The GOP: A Party In Flux
Editor’s note: A version of this article first appeared at Forbes.com
With Rick Santorum having dropped out of the race, Mitt Romney is apparently the Republican nominee for POTUS, barring a “black swan” event swooping down out of nowhere.
Why has the Republican Party taken so long to decide upon its presidential nominee? The two most common explanations given have been the structure of the primaries and the absence of an “ideal” candidate. Those are valid reasons, but there is one more that generally has been overlooked: The Republican Party itself is in a state of flux, and its new identity has not yet gelled.
The Tea Party message of smaller government has been dominant in the GOP primaries. However, even though the old guard, moderate, country club, establishment—choose whichever cliché you prefer—wing of the party was eclipsed in the nominating process, it remains a formidable force in Washington. This was evident in the recent Senate vote on repealing all subsidies to all private energy companies (conventional and renewable): 19 Republicans voted with every single Democrat against abolishing the subsidies. Also, the very fact that the most conservative budget proposal put forth in Congress by Paul Ryan (R-Wis.)—a plan that, while obviously superior to the Obama alternative, will increase federal spending and debt—shows the present limits of the Tea Party’s influence.
The Republican Party may indeed be evolving into a truly conservative party, but the transformation is far from complete. Many rank-and-file Republicans have been becoming more conservative at different rates, so it is not surprising that the candidates struggled to find the “sweet spot” where one could establish himself as the ideal 2012 Republican.
Although many Republicans were dismayed and disheartened as the primary race dragged on, there is an excellent chance that this sense of malaise will quickly dissipate now that the race is essentially over.
The bickering between the candidates was unpleasant and cast a pall over the nominating process, but that was a passing phenomenon that will soon be forgotten. Mitt Romney, Rick Santorum, and Newt Gingrich took turns pointing out each other’s past flirtations with interventionist government, while trying to outdo each other in professing to repent of those earlier missteps and emerging as the one genuine, born-again, true-blue conservative.
Ron Paul, meanwhile, who remained un-nominate-able due to his noninterventionist foreign policy (and perhaps even his uncompromising free-market principles), must feel vindicated that his three opponents (in some cases) staked out positions much closer to his consistent, constitutionalist, limited-government philosophy than would have been conceivable four years ago.
The Republican program in 2012 became clear even before Romney emerged as the standard-bearer. The last four men in the primary race—Romney, Paul, Gingrich and Santorum—all agreed: The federal government is too big, the country is in deep trouble, and the presidency of Barack Obama has been disastrous. All four advocated less federal involvement in education, effective control of national borders, lower taxes, fewer bureaucracies, repealing Obamacare, greater freedom to develop domestic energy resources, less social engineering by Washington, etc.
Choosing between Romney, Gingrich, and Santorum was, for many, like choosing between vanilla, chocolate, and strawberry ice cream. Their personalities, pasts, and priorities had different flavors, but their philosophies were of the same general type. The presidential election campaign will generate far more enthusiasm among Republicans than the primary race did, because voters will now have a clear-cut choice between Republican ice cream or another helping of Barack Obama’s spinach.
Barack Obama has already laid the groundwork for a very challenging economic environment in 2013. Whoever is president will have to cope with a bruising debt-ceiling battle, the scheduled expiration of the Bush tax cuts, a weak job market, unresolved systemic problems with Social Security and Medicare, a badly deteriorated power grid, and degraded military capabilities—not to mention possible complications resulting from Obama’s feckless foreign policy.
Frankly, I don’t think there is a person on earth who is completely prepared for all the challenges that will confront us during the next four years. I am convinced, though, that if Romney is elected, he will devote himself unreservedly to trying to solve those problems, while Obama would just make them worse. Tea Partiers, moderate Republicans, independents, and anyone else hoping for a change of direction in our country, can either unite behind Mitt Romney or concede defeat to Barack Obama. That is the choice before us.
Photo Credit: Gage Skidmore (Creative Commons)