Don't 'oil-starve' our economy
The federal stimulus package is nothing more then an election-year ploy.
It will allow a temporary boost to the economy but will have no long-term effect. It is an additional $150 billion added to the federal debt. This is an additional gift from the Baby Boomer generation that my generation and future generations will have to pay. To the baby boom generations what is another $150 billion added to the millions of dollars in debt they have run up.
The economy would benefit more by making the Bush tax cuts permanent and getting more crude oil into the system.
Lowering federal taxes and ensuring cheap oil fueled the Reagan economy. The economy boomed under Reagan and has lasted nearly 20 years. Crude oil remained relatively cheap during this period. The economy progressed under Clinton despite his raising of taxes because crude oil remained cheap. The economy went into a recession at the end of Clinton's second term. Taxes began to take their toll as well as the federal government's attack on the tobacco companies and the software companies. People lost millions in the stock market because of these attacks. Bush put a quick end to this recession by lowering many federal taxes. Making these tax cuts permanent would be a greater stimulus to the economy than the $150 billion giveaway program.
The near recession is being caused by the high oil price. This is caused by the lack of oil production, increased oil use and inadequate oil refining. ANWAR should have been open to oil production. The failure to use ANWAR caused the loss of thousands of good union construction jobs and maintenance jobs. The Democratic party and several moderate Republicans caused this loss of oil and jobs.
The Cubans, with the help of China, are drilling in the Gulf of Mexico, as are the Mexicans. The United States should be exploring and drilling in the gulf. We are not going to green our way out of this mess. The federal government had 30 years to set up a Kennedy-style program to make us energy independent. They did not. It is not right to oil starve our economy because the Baby Boomers feel guilty.
Because no one wants an oil refinery in their backyard, our federal government should encourage the Mexican government to build refineries along the U.S.-Mexican border. This will solve two problems. We will increase our oil refining, increase our gasoline supply and end illegal immigration. The Mexicans can have all the jobs created by the new refineries, that no U.S. town wants.
Our economy and the world economies expand on the availability of cheap oil. The oil starving of our economy and the world economy will give us a recession.
William R. Storino, DPM
Hainesville