Busting OPEC: Hillary and Noah worse than dumb
by
jag rao
05/07/2008, 8:50 PM #
Hillary continues to lurch from one silly populist absurdity to another at an increasing pace befuddling us thoughtful beer and wine drinking "non-elites". Even worse is to see many journalists and op-ed writers suspend all skepticism and questioning. This idea is worse than dumb --- it borders bodering on delusional and dangerous to the interests of middle class and poor Americans.
OPEC is not a cartel of companies that can be bust up using anti-trust laws. OPEC is a membership of oil producing countries. Busting countries means going to war. No other country will support us --- the Coalition of the Wlling Busters will be a membership of one. The EU and all other countries sympathetic to USA will high tail towards the exit doors.
The price is high because demand is high --- I am now talking like the economist elites that HC so happily trashed. Many developing countries are simultaneously industrializing. They will want oil hell or high water and will happily step in to take the place of USA. Offering relief on gasoline taxes adds to this demand -- talk about double jeopardy. Or triple jeopardy given our macho love for SUVs and Dodge Rams to help us navigate rush hour subarban traffic or to our grocery store.
High oil prices will encourage energy efficiency thus lowering demand while further increasing productivity of american economy. Greener and less polluting substitutes will become viable. Poor americans suffer more from environmental damage more than the rich --- the poor cannot high tail to Bahamas or Vail and they have limited health insurance.
There are many many countries happy to take OPEC wealth and invest it in their economies. USA no longer has a monopoly as a safe haven and don't kid yourself that OPEC craves America's affection. And if they move their money away from America then America will not be able to finance its trade deficit. The lower cost imports that raise standards of living of the poor and middle class will not be there. Once again the less well-off suffer.
So HC get off your populist bully pulpit and come up with some sensible solutions to back your claims of wisdom and experience. If I want a crowd baiting rabble rousing gun toting blame fthe oreigners populist I have a lot of more colorful evangelical moral majority born again pastors to choose from.