Mediocrity on parade
If this report is an honest appraisal of Washngton’s state of thought on the nation’s gasoline “crisis,” then we’re truly fucked. I have not heard anything more depressing than these stuffed shirts trying to devise increasingly absurd ways to keep our fantasy of a happy motoring country afloat.
Practiced outrage at this issue is a safe bet politically, no doubt. But whether it’s the administration looking to drill in the Arctic National Wildlife Refuge (ANWR), presidential candidates calling for a gas tax holiday, or a windfall tax on oil company profits, it’s apparent that no one has stopped to think that the underlying premise – that we must keep our national fleet moving at any cost – is wrong.
The “one million” barrels of additional production that ANWR would bring to the table is, relatively speaking, a drop in the bucket. The U.S. imports 10 million barrels of oil a day, and produces another 5 million or so domestically. In a report authored three years ago, the Energy Department said that opening ANWR to drilling “might reduce world oil prices by as much as 30 to 50 cents per barrel” (see “Results”). This corresponds to a pennies on the gallon decrease, which is hardly the kind of relief touted by the administration. The report goes on to say that the impact of the influx of ANWR oil could easily by negated by an equal decrease in OPEC exports, so as to keep the amount of available oil static.
I’m also disappointed by Clinton’s echoing of McCain’s call for a gas tax holiday, for it shows that her intentions with respect to the environment are not as pure as I had hoped. Obama’s characterization of the candidates’ tax holiday as an idea “designed to get them through an election” is spot-on.
(Update: The Freakonomics blog issues a challenge to find an economist who thinks the tax holiday is a good idea. I await the results with bated breath. The unsurprising results are in.)
McCain’s plan would do nothing to replace the lost revenue to the Federal Highway Trust Fund, causing it to miss out on about $10 billion in revenue. Clinton, on the other hand, proposes to replace this lost revenue with a windfall profits tax, which, having been repealed in 1988, has not seen the light of day since. While this tax would put Republicans in the hot seat – does one pander to one’s NASCAR base (votes), or does one kowtow to the oil industry (money) – I doubt such a measure would pass.
Though their ways may differ, Republicans and Democrats alike offer nothing new. And in such a tightly contested Democratic primary, I think it’s safe to assume that any ideas offered up will not stray far from what is considered safe politics.
Surely nothing will be heard on efforts to improve our national passenger rail system, better urban mass transit, and curbing sprawl. Instead, the desperate clinging to the status quo of “more houses/more roads/more cars”, as shown by recent talk of bailout of the adjustable-rate mortgage market, ensures that this election season, though notable for the makeup of the ballot, will remain mired in tired ways of thinking which only serve to hasten our country’s decline into a muddling pool of shit.
