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Archive for the ‘Oil’ Category

The Democrats’ economic and taxation policies at work in Illinois

Posted by Dana Pico on 2012/12/24

Remember how our friends on the left were so appalled that the Michigan state legislature passed a right-to-work law? How about in just-across-the-lake Illinois, that liberal bastion and home of President Barack Hussein Obama?

Unions blast state on plans for underfunded pensions

By Rick Pearson, Chicago Tribune | 1:26 p.m. CST, December 19, 2012

A coalition of public employee unions issued a report today blasting state legislation to address their vastly underfunded pension systems and offering instead to make increased worker contributions if lawmakers raised $2 billion by ending tax benefits to corporations and imposing new taxes.

Appearing at the James R. Thompson Center, members of the We Are One coalition said plans backed by Gov. Pat Quinn and another proposal supported by a bipartisan group of lawmakers would violate the state constitution by reducing pension benefits already guaranteed to workers. They predicted such a change would be overturned by the courts.

Moreover, the group said the plan Quinn was advocating would “cause deep harm to working and retired state employees and teachers, negatively impact the Illinois economy and yet still not solve the state’s primary pension problem — the failure to regularly fund its annual required contributions.”

The unions said their offer to require state workers and teachers to pay 2 percent more toward their retirement was conditional upon the state making an “ironclad guarantee” in state law that government fund its pension obligations.

To help fund those obligations, the unions proposed eliminating several corporate tax benefits as well as imposing new taxes on auto trade-ins, satellite TV service and downloaded digital entertainment. The new funds also could be used to help offset cuts in other public social services, the group said.

More at the link.

Illinois is an already-highly-taxed state, with significant companies considering leaving the state due to the already-passed increases in corporate taxes. Here’s another story:

Illinois Among Nation’s Worst State Business Climates, According To CEO Survey

Illinois has been struggling to keep big companies in the state since Illinois Governor Pat Quinn approved an income tax increase in January. Quinn has been widely criticized for the move, and a new survey ranking Illinois among the worst business climates in the U.S. will likely provide fodder to the naysayers.

According to a survey released Monday, California, New York and Illinois have the “least favorable business climates” to corporate executives in the U.S. Nearly 25 percent of the 322 corporate executives surveyed said Illinois was unfavorable due to high taxes and “anti-business climate/regulation.”

“With the battle for business more intense than ever, states and their economic development organizations need to pay close attention to the results of this survey,” Development Counsellors International (DCI) President Andrew T. Levine said in a statement. “Whether accurate or misguided, perceptions about a location’s business climate often play a crucial role in site selection decisions and where companies invest money and create jobs.”

Texas, North Carolina and South Carolina had the most favorable business climates, according to the survey.

More at the link. But Illinois’ business climate is so bad that the family of an Illinois state senator is moving their business out-of-state!

Mike Frerichs is running to keep his seat in the 52nd District Senate seat from Champaign County. He clams he’s all about small businesses in Illinois. Yet, things have gotten so bad during histerm in office that his own family is moving their business out of Illinois and into Indiana.

On the main page of his Senate website, Frerichs is all proud of the “job-creation program” he had a hand in but the best “job-creation program” would be to make Illinois more business friendly and tax-hike-Mike has no desire to do that at all.

The business climate in Illinois under Frerichs and Democrat Governor Pat Quinn is so bad that even Frerichs’ own family is moving its business out of the state.

Recently The Champaign News-Gazette reported that Frerichs cousin moved his trucking business from Illinois over to Covington, Indiana.

Frerichs’ cousin admitted that it is all true and that Illinois’ horrid business climate drove him out of the state.

Readers will not be surprised to learn that Mike Frerichs is a Democrat.

Illinois is doing just what our friends on the left say government should be doing as far as taxes and the economy are concerned, and the result is a loss of businesses, a state government which cannot fund its pension system, and calls for even higher taxes. Simply put, the Democrats’ economic policies are being put into practice, and they are not working!

The section above the line was published on THE FIRST STREET JOURNAL on December 21st. Today, I found this on Patterico’s Pontifications:

Chevron Moves Hundreds of Employees to Texas from California

Patterico @ 10:32 pm


Chevron Corp. will move as many as 800 jobs to Houston from its California headquarters to support its exploration and production operations, the company told employees Thursday.

The oil giant will maintain its corporate headquarters in San Ramon – just east of San Francisco – where 6,500 employees work.

In an email to its workers, Chevron said jobs moving to Houston include employees in support groups involved with technology, procurement and business development.

“Moves in these groups are expected to take place over the next two years to support our growing upstream business,” the company email said.

I wonder how many businesses are relocating employees from Texas to California. Somehow, I suspect not many.

An interesting move. Chevron is moving support jobs to Houston, which will improve efficiency and (presumably) lower costs. “Moves in these groups are expected to take place over the next two years to support our growing upstream business,” the company e-mail stated, and it makes sense that such jobs would be closer to the physical activity involved. The corporate leadership remains in California, so most of the top executives don’t have to move.

California and Illinois are both following the Democrats’ preferred model for government: unsupportably high government spending, and a high tax regime. Now the Pyrite State is losing another 800 good jobs. Those jobs might or might not have been moved anyway, even if California were governed better, but the anti-business attitude on the Left Coast couldn’t have helped swing the decision toward keeping the jobs in San Ramon.

Posted in economics, Oil | Tagged: , , , | 1 Comment »

The Oh So Terrible Condition Of Texas

Posted by John Hitchcock on 2012/07/11

Perry, the radical Leftist resident of Delaware who comments at The First Street Journal, decided to spout off “facts” that somehow “prove” Texas is terrible, and worse than the rest of the country.

Well of course our Editor wants to claim a pattern here, but he isn’t willing to peel back the curtain here, realizing that there is more to the quality of life than so-called business friendliness.

Consider this:

* Unemployment is higher than the national average,

* TX has a serious budget shortfall,

* TX has had to seriously cut back on education,

* TX is running out of groundwater, with no solution in sight,

* TX is currently in the second year of a serious drought,

* cattle and grain production has dropped precipitously,

* highest uninsured health care in the country,

* TX is turning down the medicaid expansion federal money,

* John Hitchcock lives in TX,

* and the highest number of death penalties in the country.

You name it, problems in TX are severe.

“Unemployment [in Texas] is higher than the national average.” From his very comment, he includes — but does not link to — something said on CBS last autumn, which included this dandy little statement: Texas’ unemployment has nearly reached the national unemployment level. We’ll check out that claim soon, but let’s point out here that Perry Hood’s claim at the top of his comment is directly contradicted by his link-free quote (something he does with regularity, quoting something without providing a link or a name) at the bottom of his comment.

As I previously noted in an article which made “Post of the Day” at Le-gal In-sur-rec-tion on June 21, the May unemployment figures showed Texas has had a lower unemployment rate than the national average for 65 straight months (and that will only continue to be the case). It’s some strange alternate universe in which Perry the Delaware Socialist lives where Texas’ 6.9 percent May unemployment rate is somehow worse than the US 8.2 percent unemployment rate.

From June 2006 to June 2011, Texas was one of only nine states plus DC that added jobs. During that time-frame, Texas added 537,500 jobs, or over 73 percent of the total jobs added (a rate of 2,138 new jobs per 100,000 population). At the same time the US lost 4,818,000 jobs (a rate of 1,561 jobs lost per 100,000 population). And, point in fact, during 2006 and up till March, 2007, the US was still adding jobs at a rate fast enough to easily keep pace with the population growth. So that only amplifies the rate at which the US lost jobs while Democrats held control of Congress.

In an article I wrote noting again how the Leftist-ruled states of California and Illinois are shedding jobs and productive people with their tax-heavy and regulation-heavy (especially in California) agenda, I pointed out yet another Leftist state’s demise. Maryland, in its anti-Tenth Commandment “soak the rich” Class Envy and Class Warfare mentality created a new tax on the wealthy, most productive residents. What happened? They fled the state and went to more Conservative, more business-friendly, less tax-heavy states. And, in violating the Tenth Commandment, Maryland’s tax revenue stream actually shrank. By quite a bit. Maryland raised taxes on “the rich” and lost money in the process. That’s an outcome we Conservatives have been loudly declaring would be the case with the Leftists’ Class Warfare “soak the rich” mentality. Of course, the “economics experts” are completely shocked to find when the Federal Government puts policies in place that closely track what those self-same “experts” espouse, the results are very notably dismal — again and again and again and again, providing the absolutely knee-slappingly hilarious, yet sobering “unexpected” mantra that those “experts” have been everpresently spouting for the past three and a half years.

Now, Texas does have its share of problems. Barack Obama’s Contempt of Federal Court activities in shutting down off-shore oil drilling and exploration, one of Texas’ largest industries. Barack Obama’s EPA working feverishly to shut down some of Texas’ electric generating plants while Texas is growing much more quickly than the rest of the nation in terms of both population and jobs. And, of course, Texas’ decades-long (or should I say Century-Long) explosive population growth, far exceeding that of the US as a whole, which means Texas has to produce far greater numbers of jobs per 100,000 population than the US as a whole — just to keep pace with population growth.

And how is Texas doing? The state’s unemployment numbers have remained well below that of the US for years and the unemployment rate is dropping faster than the US as a whole. As forecast by the Conservatives among us.

“Texas has a serious budget shortfall.” No, that would be Illinois, California, Maryland, New York, etc, etc. Places the Democrats have run into the ground. Texas has a Constitutional requirement to run a balanced budget. And its biennial Budget is balanced and was balanced without raising taxes, much to the chagrin of Paul Burka, Leftist Senior Editor of Texas Monthly magazine, whose rants I documented and shredded in an 8,500 word article that Le-gal In-sur-rec-tion also named “Post of the Day”. If you don’t want to read the entire thing (and you should), drop down near the bottom where Paul Burka rants and raves about the absolutely demanding, governing-free Conservatives and their orgasmic feeding frenzy of not eating. It’s a real knee-slapper.

“TX has had to seriously cut back on education.” Let’s let IowaHawk handle this one. In his first article, IowaHawk provides this:

So how does brokeass, dumbass, redneck Texas stack up against progressive unionized Wisconsin?

2009 4th Grade Math

White students: Texas 254, Wisconsin 250 (national average 248)
Black students: Texas 231, Wisconsin 217 (national 222)
Hispanic students: Texas 233, Wisconsin 228 (national 227)

2009 8th Grade Math

White students: Texas 301, Wisconsin 294 (national 294)
Black students: Texas 272, Wisconsin 254 (national 260)
Hispanic students: Texas 277, Wisconsin 268 (national 260)

2009 4th Grade Reading

White students: Texas 232, Wisconsin 227 (national 229)
Black students: Texas 213, Wisconsin 192 (national 204)
Hispanic students: Texas 210, Wisconsin 202 (national 204)

2009 8th Grade Reading

White students: Texas 273, Wisconsin 271 (national 271)
Black students: Texas 249, Wisconsin 238 (national 245)
Hispanic students: Texas 251, Wisconsin 250 (national 248)

2009 4th Grade Science

White students: Texas 168, Wisconsin 164 (national 162)
Black students: Texas 139, Wisconsin 121 (national 127)
Hispanic students: Wisconsin 138, Texas 136 (national 130)

2009 8th Grade Science

White students: Texas 167, Wisconsin 165 (national 161)
Black students: Texas 133, Wisconsin 120 (national 125)
Hispanic students: Texas 141, Wisconsin 134 (national 131)

To recap: white students in Texas perform better than white students in Wisconsin, black students in Texas perform better than black students in Wisconsin, Hispanic students in Texas perform better than Hispanic students in Wisconsin. In 18 separate ethnicity-controlled comparisons, the only one where Wisconsin students performed better than their peers in Texas was 4th grade science for Hispanic students (statistically insignificant), and this was reversed by 8th grade. Further, Texas students exceeded the national average for their ethnic cohort in all 18 comparisons; Wisconsinites were below the national average in 8, above average in 8.

Perhaps the most striking thing in these numbers is the within-state gap between white and minority students. Not only did white Texas students outperform white Wisconsin students, the gap between white students and minority students in Texas was much less than the gap between white and minority students in Wisconsin. In other words, students are better off in Texas schools than in Wisconsin schools – especially minority students.

In his second article on the subject, IowaHawk provides even more evidence that destroys the Leftist meme.

Average ACT Composite Score 2010
White students: Wisconsin 23.5, Texas 23.3 (national 23.1)
Black students: Texas 17.6, Wisconsin 16.9 (national 17.5)
Hispanic students: Wisconsin 19.8, Texas 18.7 (national 19.4)

As an aside, reader Dr. William Borland (Principal Research Engineer, Georgia Institute of Technology, lah-tee-dah) points out that 2010 state-specific public high school dropout rates are now available- and bolster my case.

2010 Public High School Event Dropout Rates
White students: Wisconsin 1.4%, Texas 1.8% (national average 2.8%)
Black students: Texas 6.3%, Wisconsin 7.8% (national average 6.7%)
Hispanic students: Texas 5.3%, Wisconsin 5.4% (national average 6.0%)

While no dropout event is good, Texas is hardly the outlier national shame claimed by Krugman. In fact, it has below national average dropout rates for all 3 ethnic groups considered, consistently in both 2007 and 2010 measures. Among white students, Wisconsin had the second lowest state event dropout rate (NJ #1), where Texas was tied for 7th. Among black students, Wisconsin was #39, Texas tied for #24. Among Hispanic students, Wisconsin was tied for #21, Texas was tied for #17.

Here’s a chart from a September17, 2009 article at Demablogue:

We have been dumping more money per student into Public Education for over 40 years without seeing any improvement in test scores. Obviously, to any reasonable person, dumping even more money into the broken system will not fix the broken system. Continuing on with IowaHawk:

Hey, it’s been a fun two days based on a simple 30-minute study of educational statistics. As regards the effect of teacher collective bargaining on student learning, I wouldn’t call what I did conclusive; just pointing out the fallacy of aggregate statistical comparisons. For a definitive study of the effect, I would point to Caroline Hoxby’s (Harvard/ MIT /Stanford, lah tee dah) 1996 QJE paper [pdf], which statistically controls for additional variables. Her main conclusions: collective bargaining increases the input provided to schools (spending, construction and the like), but actual decreases school output (test scores and the like). If you don’t like Greek letters, here’s Hoxby discussing the effect on YouTube.

[Video added.]

Perry would do very well not to listen to Paul Krugman as the above very clearly shows the fraudulent huckster’s tomfoolery. Also, from IowaHawk:

But hey, if credentials and oak-framed vellum degrees are your bag, let me share this email with you:

Dear Mr. Burger:
I edit I have a blog on the site. I would like to do a blog that will depends heavily on your material,quoting you at length, as I also think Krugman is a nobel prize winning fraud and because your data are intrinsically interesting… I will link the piece to your site, obviously.

Paul E. Peterson
Henry Lee Shattuck Professor of Government
Director, Program on Education Policy and Governance
Harvard University
Senior Fellow, Hoover Institution

Degrees-y enough for you? Despite getting my name wrong, I accepted Prof. Peterson’s request and encouraged him to go at my results hammer-and-tongs. His comments are here.

As for Mr. Krugman, I’ll only note the remarks of his former ombudsman at the New York Times, Daniel Okrent:

“Op-Ed columnist Paul Krugman has the disturbing habit of shaping, slicing and selectively citing numbers in a fashion that pleases his acolytes but leaves him open to substantive assaults.”

No shit, Sherlock.

“TX is running out of groundwater, with no solution in sight.” “TX is currently in the second year of a serious drought.” I don’t know what “groundwater” Perry is talking about. Perhaps it’s the water that’s on the ground, which is directly affected by rain. Because there’s plenty of water under the ground. And I had to stop researching and writing this article for about 3 hours as a strong thunderstorm swept through the area, providing rivers of water running down the gravel drive and ponding heavily in the yard. But Perry doesn’t want people to know that Texas has had one of its rainiest Springs in many years, far above average precipitation.

“Cattle and grain production has dropped precipitously.” Because only Texans eat the beef from Texas cattle. There’s no export to other states or other countries. And no other states ever get effected by droughts (the Carolinas and Georgia a few years ago) or floods (the Great Plains states a few years ago). What foolish claptrap. And with the far wetter-than-average Spring, which is continuing into Summer, the cattle-and-grain issue will very easily resolve itself, without government intervention. That’s not to say the same thing about California’s very agriculturally rich Central Valley, where radical Leftist environmentalist wackos in the California EPA and the US EPA turned the water off, destroying the agriculture, destroying businesses, destroying employment, destroying private wealth, destroying lives. California’s Central Valley problem could be very easily solved. Turn the water back on, you radical Leftist nutjobs!

“Highest uninsured health care in the country.” That may or may not be the case, but Texans are a very Independent, Liberty Loving people on the whole. If they do not want to buy health insurance, that should be their prerogative, and absolutely no concern for the Socialist busy-bodies like Perry. Heck, for individual adults under 30, health insurance is a bad investment, overall. They don’t tend to get all that sick, so their overpayments just go to take care of other people and not themselves. That’s not what makes a good investment.

“TX is turning down the medicaid expansion federal money.” Imagine that. A principled position for Independence and Liberty, refusing “free” OPM (other people’s money) with all the Federal regulations, restrictions, throat-slashing strings attached, coming from an “entitlement” program that is quickly becoming bankrupt. How dare Texas stand up for fiscal responsibility, Liberty, Freedom and Principle! Texas should help bankrupt the US so we can become a Socialist dictatorship that much faster!

“John Hitchcock lives in TX.” That’s just a hate-filled personal attack coming from The First Street Journal’s resident hater. That is all.

“And the highest number of death penalties in the country.” This is a good thing. A very good thing. Violent felons who snuff out innocent lives, be warned. Try that in Texas and you lose your own life. Also, Texans are among the most heavily armed, and we have the Castle Doctrine. Enter my property uninvited after dark at your own risk.

Of course, I produced the evidence a month ago regarding Texas’ economic strength compared to the rest of the country.

The economic strength rankings of the US’s 366 metropolitan areas is out, and the Killeen-Fort Hood-Temple area (where I live and work) is 30th nationally. Dover, Delaware is ranked 158, Detroit is 215, Cleveland, Ohio is 185.

Overall, Texas is doing very well, with Austin at 5, San Antonio 10, Houston 12, Dallas-Fort Worth 14, Killeen-Temple 30, and Corpus Christi 49.

Among other things, cost of living and job growth are strongly considered to create the rankings.

Let’s do a little math. Of the 366 metropolitan areas in the US, Texas has 6 in the top 49. Washington DC, with its absolute dependence on Federal Government jobs and not economy-growing jobs, ranks number 1. With 6 metropolitan areas in the top 49, each of those six Texas metropolitan areas is guaranteed to have outperformed at least six entire states. With 4 of the top 14 metropolitan areas, each of those four Texas metropolitan areas is guaranteed to have outperformed at least 39 entire states. Is it any wonder Texas is the number one state in the Union, economically?

Posted in Conservative, economics, education, Elections, Liberal, media, Oil, Over-regulation, Personal Responsibility, Philosophy, politically correct, Politically Incorrect, politics, society, truth | Tagged: , , , , , , , | 2 Comments »

EPA Mandates You Buy Unicorn Farts

Posted by John Hitchcock on 2012/06/23

The federal EPA has mandated that oil companies buy a certain amount of cellulosic ethanol made from wood chips, switchgrass, corn cobs and the like, a product that doesn’t even exist (unicorn farts for short), or pay hefty fines. And oil companies have already been forced to pay those fines for their 2011 non-compliance in their refusal to buy those unicorn farts. As a result, Americans get to pay more at the pump for their fart-free gasoline; an artificial, government-forced fuel cost inflation. Howard Portnoy writes:

Question: Do you fill your car’s tank with gasoline that is part cellulosic ethanol, an environment-friendly distillate of wood chips, corn cobs, and switch grass? Let me answer for you: No, you don’t. You couldn’t if you wanted to. Petroleum products blended with cellulosic ethanol aren’t commercially available, because the technology for mass-producing cellulosic ethanol hasn’t been perfected. None of which has stopped the Environmental Protection Agency from imposing hefty yearly fines on oil refiners. According to the The New York Times, in 2011 automotive fuel producers were assessed $6.8 million in penalties. That amount is expected to climb dramatically this year. Guess who ends up footing the bill for the difference?

As Mr Portnoy notes, George W Bush called for this sort of thing in his 2006 State of the Union address, and signed it into Law in 2007. This terrible government mandate to be fined for not putting unicorn farts into the nation’s gasoline was written by the 2007 Democrat-controlled Congress and signed into Law by the squish Republican George W Bush, when not a single commercial cellulosic ethanol plant was up and running. There still isn’t a commercial unicorn fart plant running, even after the government pumped over a billion tax-payer dollars into businesses promising to make those unicorn fart plants.

A December, 2011 article from Bloomberg notes the bankruptcy of one such failed company.

Range Fuels Inc., a cellulosic ethanol company backed by as much as $156 million in U.S. loans and grants from President George W. Bush’s administration, is being forced by the government to liquidate its only factory after failing to produce the fuel.

The closely held company, which counts Vinod Khosla, a venture capitalist and Sun Microsystems Inc. co-founder, as an initial investor, shuttered the factory in Soperton, Georgia, in January after not delivering on its promise to convert woodchips into ethanol, which was intended to help the U.S. become less dependent on foreign oil.

So, Range Fuels Inc shuttered its doors in January, 2011, after proving incapable of producing the unicorn farts, and after soaking up millions of dollars in tax-payer money. The government picking winners and losers, and still, those winners lose. And we all lose in the process. But that’s not all. A January, 2012 article from The New American has even more.

EPA spokeswoman Cathy Milbourn told the Times that the 2012 cellulosic ethanol quota is “reasonably attainable.” The paper continues: “By setting a quota, she added, ‘we avoid a situation where real cellulosic biofuel production exceeds the mandated volume,’ which would weaken demand.”

Milbourn need not worry that production will exceed the EPA’s quota for many years to come. There are simply too many barriers to overcome.

First is that cellulosic ethanol production is so difficult and expensive that no one in the private sector is willing to invest in it without hefty government subsidies. Thus far the feds have poured at least $1.5 billion into ethanol startups, with more subsidies on the way. Not surprisingly, “the half-dozen or so companies that received the first round of subsidies never got off the ground,” the Wall Street Journal noted in a December editorial. Georgia’s Range Fuels, for example, received $162 million in federal and state subsidies to produce ethanol from pine chips; last week The New American reported that Range had folded a year ago, an utter failure. The Journal cited Alabama-based Cello Energy, whose ethanol production was supposed to account for some 70 percent of the 2010 cellulosic ethanol mandate. The company went bankrupt in October of that year, having achieved nothing except bilking taxpayers.

“Incredibly,” the Journal remarked, “those projections [of Cello’s production] were made before Cello had built its plant to produce the fuel and before the technology was proven to work.” Similarly grandiose claims for upcoming ethanol plants are thus to be taken with several grains of salt.

Did everyone get that? There is no commercial production of unicorn farts, but the EPA has stated the 2012 requirement to purchase millions of gallons of unicorn farts is reasonably attainable, knowing there are no unicorn farts to buy. And the businesses that are getting millions of dollars each in tax-payer money are going bankrupt without adding the first gallon of this “product” into the marketplace.

Last year, I wrote about corn ethanol being a net energy consumer instead of a net energy producer. I also showed that corn ethanol produces even more pollution than gasoline, is more expensive than gasoline, is harder on engines than gasoline, and causes “corn for food” prices to artificially inflate. And now, on top of that, we get to foot the bill for a nothing-burger.

Ain’t Big Government Leftists grand?

Posted in economics, Environmentalism, George Bush, Law, Liberal, Oil, Over-regulation, Philosophy, politics, Tax | Tagged: , , , , , | 3 Comments »

If I Wanted America To Fail

Posted by John Hitchcock on 2012/04/22

In this age of enhanced political activity among the populace; in this internet age, commercials no longer have to be “TV length”. They can be several minutes long and they’ll be watched. Intentionally watched. By people who have always been plugged in politically and by people who have, out of absolute necessity, have recently plugged in politically. The Gate Keepers may still be keeping the gates locked to the rest of the available information, but those gates no longer have the surrounding walls. Like the Berlin Wall, the information walls have come crashing down. And information-starved people have swept past the still-locked gates the Gate Keepers are still guarding by flowing where the walls used to be instead of where the still-locked gates are. To the dismay of the Liberal Elite.

Here is an example of a not-made-for-TV, several minutes long political ad that people are watching intentionally. An example of how the Gate Keepers are no longer able to restrain the flow of information.

“If I wanted America to fail, I … I suppose I wouldn’t change a thing.” Ain’t that the truth.

Morgen Richmond over at Hot Air said

I don’t think Democrats want America to fail any more than Republicans do…

But then again, there’s that Cloward-Piven strategy being employed, which requires the US to fail in order to complete its endgame.

Posted in Blogging Matters, Character, Conservative, economics, education, Environmentalism, Global Warming, Liberal, media, Obama, Oil, Over-regulation, Personal Responsibility, Philosophy, politically correct, politics, society, TEA Party, truth, Used To Be Cheap Energy, Youth | Tagged: , , | Comments Off on If I Wanted America To Fail

Three Obama Failures in Oil – The Anti-Jobs President Strikes Again – Don’t Look for These in the State of the Union

Posted by Yorkshire on 2012/01/24

Three separate, but co-mingled incidents recently happened that has left many scratching their heads in disbelief. All of these have the Obama Administration, or Obama’s fingerprints all over them. The first on is in Brazil. It was kind of funky that BO talked out of both sides of his mouth last year. While he closed the Gulf of Mexico to virtually all oil exploration, he encouraged Brazil to open deep water exploration and development of a new oil field in the Atlantic. He said at that time he would give Brazil $2Billion to help develop. (But there is some dispute about that) And he did say that the USA would be their No.1 customer. Well, we won’t be, Brazil signed a $10Billion deal with the Chinese to develop the field.

China gets jump on U.S. for Brazil’s oil
By Kelly Hearn – Special to The Washington Times

BUENOS AIRES — Off the coast of Rio de Janeiro — below a mile of water and two miles of shifting rock, sand and salt — is an ultradeep sea of oil that could turn Brazil into the world’s fourth-largest oil producer, behind Russia, Saudi Arabia and the United States.

Moron this story here and there:

And this article: Obama’s Brazilian Oil Disaster

Then we go to No.2. Number two is the rejection of the Keystone XL Pipeline by TransCanada to bring oil to southern refineries from Alberta. It was reject to appease the evironMENTALists and the Left because any other excuse makes no economic sense at all. Canada has more oil than it needs for its own population. They sell 90% of their exports to us. Since it appears BO has to support his Far Left Base, rejection was easy. What small environment issues could have bee worked out while constructing the pipeline. In the meantime, Canada may sell the oil to China (is there a theme here?)

Keystone XL pipeline proposal rejected — for now
TransCanada will apply again, CEO says
By Laura Payton, CBC News

The U.S. government has denied an application by TransCanada to build the Keystone XL pipeline, the State Department announced Wednesday.

A statement released by the department said it doesn’t preclude the Calgary-based TransCanada from applying again with a different route, and the company said in a press release that it will do just that.
Moron this story here:


And then No.3. Unofficially the unemployment rate is around 15% in spite of the alleged official rate of 8.5%. One state has the lowest unemployment rate at 2.5% and it is North Dakota. Why? The Bakken Oil Field. There is a giant oil BOOM in ND. At the oil fields, oil is extracted by Fracking which is injecting a fluid under high pressure to fracture the shale and release the oil. ND figures it need thousands of more workers for these fields. But, it’s BO to the rescue, not in a good way. His friends the EnvironMENTALists hate fracking. So, how does BO stop this success story, why the EPA of course.

EPA May Place Moratorium on Further Fracking Until 2013
Posted by Bakken Oil on Nov 30, 2011 in News

In a quite remarkable recent story in the Bismark Tribune, Lynn Helms the Director of the Department of Mineral Resources, stated be believes the EPA is on track to halt hydraulic fracturing as soon as January of 2012.

With billions of dollars, thousands of jobs, and over 200 rigs currently working in the area, this would be a monumental setback for the industry.

Moron this story here:

Posted in economics, Oil, Politically Incorrect, Used To Be Cheap Energy | Tagged: , | Comments Off on Three Obama Failures in Oil – The Anti-Jobs President Strikes Again – Don’t Look for These in the State of the Union

Sarah Palin Reloading, Not Retreating

Posted by John Hitchcock on 2011/10/10

Sarah Palin gave a 50-minute speech followed by a 15-minute question and answer session in St Louis, MO on October 7, 2011. For those who don’t understand, that came after she declared she was not running for President. And Sarah Palin didn’t hold back. She attacked the Obama Chicago Politics Machine. She attacked the Political Class on both sides of the aisle. She attacked Big Government Ruling Class Establishment Republicans. She attacked Democrats. She attacked crony capitalism. She continued to push for the Founders and Framers’ vision of the US as the Land of the Free instead of the home of the subservient. She set forth an agenda for going forward by remembering the past as it truly was. And she did it all in her trademark optimistic Sarah Palin style. Watch it for yourself.

Sarah Palin has not given up the stage. She is definitely going to keep up the fight, and as a result, the candidates for office — Presidential and below — will have to respond to the TEA Party and Palin campaigns to take the US back to its roots of Freedom and Liberty. So yes, this campaign season will indeed be far different than campaign seasons of the past. It will not be SOP out on the stump. Times, they have changed.

Linked by Texans For Sarah Palin

Posted in Character, Conservative, Constitution, economics, Elections, Environmentalism, Health Care, history, Liberal, media, military, Obama, Oil, Over-regulation, Palin, Personal Responsibility, Philosophy, politically correct, Politically Incorrect, politics, society, Tax, TEA Party | Tagged: , , , , , , | 1 Comment »

#OccupyWallStreet or Attack Of The Moron Mob From Mars

Posted by John Hitchcock on 2011/10/05

You should see their hilarious list of demands. (HT Yorkshire) And the co-chairs of the Congressional Progressive Caucus support these anarchist socialists for huge government and freebies (how many oxyMORONS is that?).

Free health care
Free college
20 dollar an hour jobs for all
No oil
No nuclear power
No credit reporting agencies
Debt forgiveness for all
Spend a trillion here
Spend a trillion there
Power to the unions
No borders
Lotsa tariffs
Lotsa more freebies

And the anarchist socialist for huge government and freebies (how many oxyMORONS is that, again?) is fool enough to call people who confront his moronitude an economic neophyte! Absolute hilarity!

Oh by the way, some Unions are going to bus in some astroturf to help them fill out the crowd size.

Please, Democrats, please line up in support of this mob of morons. By the way, I’m going to need lots more popcorn. I wonder if that’s free, too.

Linked by The Lonely Conservative

Posted in economics, funny business, Health Care, humor, Liberal, media, Oil, Over-regulation, Personal Responsibility, Philosophy, politics | Tagged: , , | 9 Comments »

Perry Hood: There Are States That Don’t Count

Posted by John Hitchcock on 2011/08/29

Perry Hood made this comment over at Common Sense Political Thought:

I think the American people will see through your propaganda and reelect him in large numbers in the states that really count!

Not to be confused with Texas Governor and Presidential candidate Rick Perry (R), Perry Hood is a far-Left commenter on Common Sense Political Thought and the administrator of the hilariously named “Bridging the Gap” who makes the equally laughable false claim that he’s somehow a centrist.

I responded to his remark over there.

Here’s the issue with Perry’s absolutely elitist proclamation:
1) It’s as purposely vague as a horrorscope;
2) It’s elitist because, by definition, “the states that really count” means there are states that don’t count;
3) Whatever states that Obama wins in large numbers in 2012 will then turn out to be the only states that really count.

Let me add a number 4: “Large numbers” is also hopelessly vague as it can be defined after the fact. Whatever the numbers turn out to be, they can then be defined as “large numbers” thereby fitting the prediction. But let’s look at some histo-facts, shall we? Let’s look at two chunks of data.

First off, the 2008 Presidential election state-by-state results as provided by US Election

The states that RINO squish John McCain won and, by definition, do not count:
North Dakota
South Dakota
West Virginia
South Carolina
(22 states)

The states Obama won but got less than 50 percent of the vote thereby, by definition, not states that count:
North Carolina

The states Obama won with less than 53 percent of the vote, thus not a large margin, and don’t count:

Thus, by Perry Hood’s definition and based on the 2008 election results, there are 27 states (out of 50? 57? 60?) that don’t count. If you live in the South, chances are your state doesn’t count. If you live in the bread basket, chances are your state doesn’t count. If you live in the energy producing states, chances are your state doesn’t count.

Let’s look at that second histo-fact dataset: Job Production. Dana Pico introduced a pie chart showing only nine states added jobs between June 2006 and June 2011. In the past three election cycles, New York was the only job-producing state that went Democrat. The other eight states went Republican-Republican-Republican in the last three election cycles. Only New York, the worst job producer of the nine in total jobs added and jobs added per capita, went Democrat. That means, by Perry Hood’s metric, New York was the only state that counts among the job producers.

So to recap, if you live in a job-producing state or a southern state or an energy-producing state or a bread basket state, chances are your state doesn’t really count. If you live in one of 27 states (and there really are only 50), your state doesn’t really count. As the elitist snob (who claims to be for the everyman) radical Leftist (who claims to be a centrist while using every derogatory Leftist meme to smear Republicans and Conservatives, the TEA Party included) gap builder (who claims to be a gap bridger) set down in his defining statement.

Posted in economics, Elections, history, Liberal, Obama, Oil, Philosophy, politically correct, politics, society, TEA Party, truth | Tagged: , , , , , | 3 Comments »

More Evidence Federal EPA Has To Go

Posted by John Hitchcock on 2011/06/24

The EPA is fining oil refiners millions of dollars because oil refiners are not blending their fuels with a non-existent product.

HT Foxfier’s shared RSS feed.

Posted in economics, Environmentalism, Liberal, Obama, Oil, Over-regulation, Philosophy, politically correct, politics, truth | Tagged: , | Comments Off on More Evidence Federal EPA Has To Go

Carter, Clinton And Obama Land Grabs

Posted by John Hitchcock on 2011/06/03

Here is one of many reasons why merely defeating Obama isn’t good enough. Only a Conservative President will suffice. From Right Pundits, March 2010:

Clinton and Carter were grab happy – Carter for land, Clinton for land…and other things. According to a Washington Times article by Sen. Jim Demit, Carter snagged 50 million acres in Alaska, despite strong opposition from the state, and Clinton snatched 5.9 million acres across the country creating 19 new national monuments.

But Obama has big plans for his 10 million acres. He’s going to save the prairie chickens in New Mexico, a “center of climate change scientific research” in Nevada, and an oil-rich plot of land in Colorado because it’s under the threat of being developed for actual usage.

Clinton’s land grab stole 1.7 million acres from Utah — land that has a massive “clean coal” field, which could produce 100 million tons of clean coal over 45 years. And it was purely political.

Michelle Malkin has been keeping up with the Obama Administration’s land grabbing and Independence-minded people fighting to put a stop to it.

Since day one of the Obama administration, I’ve chronicled Loathsome Cowboy Ken Salazar’s War on the West, War on Jobs, and War on Science/Rule of Law. The last straw was his attempted Wild Lands grab. GOP leaders rose up with farmers, ranchers, and Western governors to stop the scheme in its tracks. Utah and Alaska have filed suit. Wyoming joined the litigation this week.

And now, Salazar has officially announced the backpedal:

“On December 22, 2010, I issued Secretarial Order 3310 to address the BLM’s management of wilderness resources on lands under its jurisdiction. Under Secretarial Order 3310, I ordered the BLM to use the public resource management planning process to designate certain lands with wilderness characteristics as “Wild Lands.”

On April 14, 20II, the United States Congress passed the Department of Defense and Full-Year Continuing Appropriations Act, 2011 (Pub. L. 112-10)(2011 CR), which includes a provision (Section 1769) that prohibits the use of appropriated funds to implement, administer, or enforce Secretarial Order 3310 in Fiscal Year 2011.

I am confirming today that, pursuant to the 2011 CR, the BLM will not designate any lands as ‘Wild Lands.'”

That may put a temporary halt to the Obama Administration’s land grabbing. But it may not. As you may recall, the Obama Administration is in contempt of a Federal Court Order to re-open the Gulf for off-shore drilling and end the moratorium.

Regarding George W Bush, Tom DeWeese wrote in March, 2001:

For those who thought the election of President Bush was the solution to America’s property rights problems, think again. The issue of property rights is rapidly emerging as a major battleground for those who remain legitimately fearful of the federal appetite for more and more land. This runs counter to the basis for our entire economy, the right to own and manage land for its development and use.

Interior Secretary Gale A. Norton has stated that the Bush administration will not overturn any of former President Clinton’s arbitrary designation of millions of acres of federal land as “national monuments”, putting them off-limits to mining, timber, grazing, and other commercial activity.

Instead, the Bush administration offers vague promises of working with western lawmakers and private property owners to ‘adjust the boundaries’ and ‘alter the rules’ governing commercial activities.

This is Beltway talk for doing nothing. The federal government currently owns an estimated quarter of the entire landmass of the nation. It is land Congress has mandated for ‘multiple use’ to insure that the vast natural resources of coal, oil, natural gas, and timber can be accessed to meet our current and future needs. This do-nothing property policy, coupled with an apparent lack of an energy policy, exists despite the obvious need to vigorously reverse the restrictions put in place by the Clinton administration.

Map via Frank Jacobs, Strange Maps blog/Big Think

As you can see, Big Government Liberals have been grabbing tens of millions of acres of land for decades. Energy-rich land. Natural resource-rich land. For purely political reasons. And Big Government Republicans have not returned that land back to the states and private citizens. Simply slowing down the land grabs will not do. Simply putting a stop to the land grabs will not do. As soon as a Liberal becomes President again, ever more land will be stolen from the states and from We the People. It is imperative that a Conservative be elected President in order to actually reverse the land grabs and return the land to its rightful owners (which is NOT the Federal Government).

UPDATE: Very related, Jazz Shaw reports on the Obama Administration’s outside-the-Legislature-where-it-belongs power grab and war on the coal industry.

While much of our attention on matters of domestic energy production has been focused on questions regarding oil and natural gas, (and to a lesser extent, nuclear) which, as Ed pointed out earlier, might be more plentiful than we currently imagine, the EPA has certainly been a bunch of busy beavers on other fronts as well. Even though cap and trade went down in flames through legal routes, as The American Legislative Exchange reports, the commission has been using extra-legislative procedures, cloaked under the guise of the Clean Air Act, to to effectively declare war on the American coal industry.

Do read the rest of Jazz Shaw’s article. It’s very informative. And Ed Morrissey’s article Jazz Shaw linked is likewise very informative. Do read Mr Morrissey’s entire article. His sourcing and quoting suggests we may be at the beginning of the fossil fuel era and not approaching its end. His conclusion? “As I said earlier, the energy crisis in this country is entirely self-inflicted, mainly because the demagogues and Chicken Littles have controlled the narrative for far too long.”

Just more evidence that simply stopping the Big Government and radical Leftist power-grab and land grab is not enough. Just throwing Obama out is not enough. We need a Conservative to actually reverse the Big Government, anti-Freedom, anti-Individual agenda, not just stop it.

Posted in Conservative, Constitution, economics, Elections, Environmentalism, George Bush, history, Liberal, Obama, Oil, Over-regulation, Philosophy, politically correct, politics, society, TEA Party, war | Tagged: , , , , , , | 1 Comment »

GAO: Obama Puts Politics Ahead Of Science

Posted by John Hitchcock on 2011/05/11

Same story, different day, different target. A recent Government Accountability Office report declares Obama put politics ahead of science in his hasty closure of Yucca Mountain. Ed Morrissey writes:

Quick — which presidential candidate pledged to restore science to its “rightful place” in government policy? If you’ve forgotten, well, so has Barack Obama and his administration, according to the GAO. The watchdog agency reports that the White House rushed to shut down the Yucca Mountain nuclear waste disposal facility for political rather than scientific considerations, and that Obama’s manipulation will cost taxpayers billions of dollars and set back the nuclear industry by decades

There are even bigger problems that the GAO report uncovered, not all having to do with the Obama administration. Thanks to the hasty closure, another disposal site must be found. However, the GAO estimates that even if a decision on a new site was made today, the permit process for its use would keep it off line until … 2045. It will take 34 years to get full approval on the next waste-disposal site, and that’s if the site avoids “cost delays” and “garners public acceptance.”

Due to federal over-regulation, we have not built a new nuclear plant or oil refinery in the US in over 30 years. And now, thanks to the Obama administration playing politics instead of going with the science, has basically guaranteed we won’t open a new nuclear waste disposal facility for more than 34 years. But, hey, when Obama has an agenda, nothing gets in his way.

Coal power has been on Obama’s hit-list since before he was President. And he knew his goal would necessarily make electricity costs skyrocket and bankrupt large portions of the coal industry.

The Obama administration sought and got expert opinion regarding deep-water drilling after the Gulf disaster. Then the Obama administration lied about what those experts signed off on. You see, the experts signed a 44-page document that did not say “shut ‘er down” and then added two “shut ‘er down” paragraphs into the document after it was already signed. That’s fraud. That’s intentionally misrepresenting what the experts said. That’s placing expert signatures on something the experts did not sign.

Then a federal judge ordered an immediate halt to the moratorium. And the Obama administration ignored the federal judge’s order. Of course, Obama thinks he’s above the law. He’s ruler of the USSA, after all. But the judge didn’t see it that way. He found the Obama administration in contempt of court. Ed Morrissey wrote about that in February of this year.

When Judge Martin Feldman ordered the federal government to end its moratorium on deep-sea drilling, he actually meant it. In a ruling earlier today, the federal judge in New Orleans has held the Obama administration in contempt for its “defiance” in reimposing the moratorium through other means:

The Obama Administration acted in contempt by continuing its deepwater drilling moratorium after the policy was struck down, a New Orleans judge ruled.

Interior Department regulators acted with “determined disregard” by lifting and reinstituting a series of policy changes that restricted offshore drilling, following the worst offshore oil spill in U.S. history, U.S. District Judge, Martin Feldman of New Orleans ruled yesterday.

“Each step the government took following the court’s imposition of a preliminary injunction showcases its defiance,” Feldman said in the ruling.

“Such dismissive conduct, viewed in tandem with the re- imposition of a second blanket and substantively identical moratorium, and in light of the national importance of this case, provide this court with clear and convincing evidence of the government’s contempt,” Feldman said.

Shortly after Obama became President, he canceled oil shale leases in Utah.

The truth is, ever since Barack Obama took office the President has been making it more difficult to exploit our own energy resources, one of his first actions was having the Secretary of the Interior cancel leases to exploit our shale oil reserves in Utah. It seems as if President Obama’s energy policy consists of making America more dependent on foreign oil.

Obama has been very busy grabbing up energy-rich land ever since he took office. And Michelle Malkin has been busy documenting it.

I’ve been reporting on the stealth Obama land and ocean grabs for the past year now. Quick review: Last August, I told you about the “Great Outdoors Initiative” to lock up more open spaces through executive order. This came on top on top of a separate, property-usurping initiative exposed by GOP Rep. Robert Bishop and Sen. Jim DeMint earlier this spring. According to an internal, 21-page Obama administration memo, 17 energy-rich areas in 11 states have been targeted as potential federal “monuments.” The Obama War on the West is a War on Jobs that extends from land to sea based on politicized junk science by executive fiat and czar evasion. In November, I noted the expansive Interior Secretary Ken Salazar/NLCS designation. And in February, I mentioned the federal wild lands grab slipped through by Salazar during the Christmas season lame duck session.
[nine links in that paragraph, follow the above link to find them]

Obama wants energy costs to skyrocket. It’s part of his plan.
Lock up land that can produce energy.
Shut down off-shore drilling by using a fraudulent document.
Blatantly refuse to obey a federal judge’s order.
Kill oil jobs and put oil-related businesses out of business.
Declare desire to bankrupt the coal industry (which produces 48 percent of our electricity).
Set the nuclear energy sector back 34 years at a minimum for political reasons, ignoring the science, at a cost of billions of tax-payer dollars and many high-paying jobs.

There can be no other explanation. Obama wants US energy costs to go through the roof. And that will destroy the economy. Working poor and middle class hardest hit.

Posted in Constitution, economics, Elections, Environmentalism, Liberal, Obama, Oil, Over-regulation, Philosophy, politically correct, politics, society, Tax, truth | 1 Comment »

Ethanol: An All-Around Bad Idea

Posted by John Hitchcock on 2011/05/11

There are large numbers of politicians on both sides of the aisle who love their corn alcohol.

They think it’s a good idea to put it in your car but that’s because they’ve been too busy drinking it. The numbers just don’t fit. At all. Popular Mechanics explained what it takes to make ethanol, and it ain’t pretty.

Let’s start with the math. Corn doesn’t grow like a weed. Modern corn farming involves heavy inputs of nitrogen fertilizer (made with natural gas), applications of herbicides and other chemicals (made mostly from oil), heavy machinery (which runs on diesel) and transportation (diesel again). Converting the corn into fuel requires still more energy. The ratio of how much energy is used to make ethanol versus how much it delivers is known as the energy balance, and calculating it is surprisingly complex.

The National Renewable Energy Laboratory states that, “Today, 1 Btu of fossil energy consumed in producing and delivering corn ethanol results in 1.3 Btu of usable energy in your fuel tank.” Even that modest payback may be overstated. Skeptics cite the research of Cornell University professor David Pimentel, who estimates that it takes approximately 1.3 gal. of oil to produce a single gallon of ethanol.

If the benefits are in doubt, the costs are not. It would take 450 pounds of corn to yield enough ethanol to fill the tank of an SUV. Producing enough ethanol to replace America’s imported oil alone would require putting nearly 900 million acres under cultivation—or roughly 95 percent of the active farmland in the country. Once we’ve turned our farms into filling stations, where will the food come from?

There’s a simple reason that ethanol is popular with politicians: money. Substituting corn ethanol for a large fraction of the gasoline we burn will mean sluicing gushers of cash from more populated states to politically powerful farm states. And a lot of that cash will wind up in the pockets of the big agribusinesses, like Archer Daniels Midland, that dominate ethanol processing—and whose fat checkbooks wield enormous influence in Washington.

(Look at that. Big Business in bed with Big Government. Go figure.)

“Producing enough ethanol to replace America’s imported oil alone would require putting nearly 900 million acres under cultivation—or roughly 95 percent of the active farmland in the country.” But that was before the government killed California’s rich central valley farmland, so some of the active farmland is no longer. And of course, turning all your food into fuel means you don’t get to eat. It could take 1 gallon of oil to make 1.3 gallons of ethanol or 1.3 gallons of oil to make 1 gallon of ethanol. I could say 1.3 – 1, ethanol loses, class is over. But let’s say 1 – 1.3, small gain for ethanol, sorta. On to the next article.

Edmunds compared the fuel economy of E85 with gasoline and I don’t like what they saw. They went out on a 667-mile road trip from San Diego to Las Vegas and back. The trip on gasoline used 36.5 gallons and cost $124.66. The trip on E85 used 50 gallons and cost $154.29. Using the “1 gallon of oil produces 1.3 gallons of ethanol” formula, it takes 38.5 gallons of oil to make 50 gallons of ethanol. Since 50 gallons of E85 contains 7.5 gallons of gasoline, let’s just call it square. 36.5 gallons to make 50 gallons. No oil savings at all. But it cost the consumer more.

[T]he net effect is that a person choosing to run their flex-fuel vehicle on E85 on a trip like ours will spend 22.8 percent more to drive the same distance.

Okay, so we’re using the same amount of oil but paying more for it and eliminating loads of food in the process, raising the price of food. The end. Or not. The same Edmunds article continues.

By relating our observed fuel economy to CO2 emission figures found in the EPA’s Green Vehicle Guide we determined that our gasoline round trip produced 706.5 pounds of carbon dioxide. On E85, the CO2 emissions came to 703.1 pounds. The difference came out in E85’s favor, but only by a scant 0.5 percent. Call it a tie. This is certainly not the reduction in greenhouse gas emissions we had been led to expect.

Here’s the trick with that. And watch very carefully. Using gasoline, the carbon dioxide production is 706.5 pounds, but when using E85, the carbon dioxide production is 706.5 + 703.1 = 1,409.6 pounds. Did you catch that? It takes burning that petroleum to create that E85 to burn. So the only proper way to examine the CO2 output is to combine the two. And that means using E85 is far more “polluting” than merely using gasoline.

What we have so far:
It takes as much petroleum to create the ethanol as it does to just skip that step.
It costs more to drive on ethanol than on gasoline.
The CO2 output of driving on ethanol is double that of driving on gasoline.

But wait, that’s not all. From Science Daily:

Patzek is also concerned about the sustainability of industrial farming in developing nations where surgarcane and trees are grown as feedstock for ethanol and other biofuels. Using United Nations data, he examined the production cycles of plantations hundreds of billions of tons of raw material.

“One farm for the local village probably makes sense,” he says. “But if you have a 100,000 acre plantation exporting biomass on contract to Europe , that’s a completely different story. From one square meter of land, you can get roughly one watt of energy. The price you pay is that in Brazil alone you annually damage a jungle the size of Greece.

Ten years, ten Greece-sized jungles gone. How’s that fit the environmentalist goal?

Where’s the “win” in ethanol? Politicians get elected. Big Business gets a lot of free tax-payer money. Ignorant Liberals, believing the lie, get to feel good about themselves. But as far as pollution, fuel economy, economic cost for the fuel, food inflation, it’s a lose-lose-lose-lose.

Posted in economics, Environmentalism, food, Liberal, media, Oil, Over-regulation, politically correct, politics, society, truth | 1 Comment »

About That Recovery… Funny, I Don’t See None

Posted by John Hitchcock on 2011/05/06

McDonalds added 62,000 jobs last month. Coincidentally, McDonalds was one of 1,200+ winners of the “ObamaCare Waiver” lottery, along with multiple Unions who had pushed for ObamaCare and then wanted out. And, depending on who you ask, that was either close to 1/4 or just over 1/3 of all new jobs created last month.

To claim this is a sign of a recovery, one would have to be a few fries short of a Happy Meal. As Jazz Shaw said,

185,000 is still far short of the roughly one quarter million new jobs we need to be adding monthly to set us on any sort of sustainable path to previous employment levels.

I wonder where we might be able to generate some more jobs, or if there’s even anything the government could do about it? Hrmmm… I wonder if we might find a few new jobs for the people near the Gulf who work in the energy industry?

Yes, due to the current level of unemployment (including those who have fallen out of the picture altogether) and the fact the US is still growing in population, at least a quarter million jobs a month must be created. At least. But we’re nowhere near that benchmark, and we’re not even coming close to being headed toward that benchmark, so long as current Administration policies and agendas continue to be pushed.

There have been no oil refineries built in the US since the 1970s. And as Tim Higgins says, “Nuclear energy remains a pipe dream in a nation that hasn’t built a new facility in over thirty years, in large part because of the cumbersome federal regulatory process involved.”

Donald Hertzmark explains multiple bad energy decisions made in the 1970s. Hertzmark’s conclusion:

In the end, the energy policies of that past 30 years that had significant positive effects were mostly of the “first do no harm” variety. Most of those policies were enacted during the 1980s, so as to undo some of the most egregious acts of the 1970s. With the exception of the spectacular unintended consequences of the (relative) pittance in Synfuels Corporation funding, all of the careful mandatory allocations, use restrictions, production restrictions, punitive taxes, price controls and technology development showed either negative impacts on the supply of energy or no discernable effects on energy supply and use.

A number of the Carter era policies have remained part of the US Government’s official approach to energy: restrictions on offshore oil and gas production, “catch-22” type regulation of spent nuclear fuel, reliance on overall manufacturer fuel economy standards rather than prices to encourage conservation of gasoline, and last, but not least, the ethanol tax credit.

The price that we have paid for these interventions – less domestic energy production, more price volatility, aging network infrastructure – far exceeds any of the supposed benefits of such policies. Now we have a new president who wishes to make his name by even more massive intervention in energy markets – since it worked so well the last time. We face grandiose plans that start from the assumption that markets do not work and private firms cannot be trusted to make the “right” types of investments, when, in fact, most of our “remnant” problems result from ignoring rather than following market pricnciples. If the 1970s are any guide we will live with the consequences of our follies for many years.

Over-regulation and the addition of armies of new regulators kill private sector job opportunities and growth. It is the very nature of the regulation beast. As Americans For Prosperity (HT Kathy Shaidle) notes:

And as we have pointed out, there are of late many new regulators ensconced in Washington.
Which, as the Phoenix Center report states, is an expensive expansion of busybodiness.

(E)ach million dollar increase in the regulatory budget costs the economy 420 private sector jobs.

Thankfully, the Center has the simple cure – cut back on the regulatory bureaucrats.

On average, eliminating the job of a single regulator grows the American economy by $6.2 million and 98 private sector jobs annually.

That last word is key. Eliminating one regulator creates 98 gigs – not just this year, but next year, and the year after that, and….

Talk about a force multiplier.

And by creating room for the private sector by contracting the government by one regulatory bureaucrat, we get $6.2 million in economic expansion that year and every year thereafter.

These positive numbers very quickly add up to some serious private sector job and economic growth.

O)ver a five-year window, even a small 5% reduction in the regulatory budget (about $2.8 billion) will result in $376 billion ($75 billion annually) in expanded GDP and expand employment by 6.2 million jobs (1.2 million annually).

Of course, every Obama Administration Commission, Agency and Department has – since November’s election – has busied themselves hiring many, many more of these bureaucratic busybodies. In many, many cases to enact and enforce regulations that were never passed by Congress.

ObamaCare has added thousands of new pages of regulations and all manner of new regulators. The FCC, FEC, EPA, etc, etc are adding untold new regulations and untold new regulators to force compliance with the new regulations Congress never voted on. And it’s costing jobs, freedom, inflation, and the economy overall.

Federal and state regulators destroyed arguably the richest agricultural land in America, costing untold economic damage to central California and its residents. Federal regulators killed Shell’s drilling for new oil on the north shore of Alaska, killing jobs, adding to the upward pressure on oil prices, continuing our reliance on America’s enemies for oil. Federal regulators got in Texas’ regulators’ business and killed jobs in Texas. Federal regulators are right now trying to kill oil production in Texas, again killing jobs and adding to the upward pressure on oil costs. The list goes on and on and on and …

Want a recovery? Eliminate ObamaCare, eliminate EPA regulations that are killing both the agriculture industry and the oil industry among other businesses, stop the contempt of federal court action the Obama administration is involved in, eliminate every regulator job that was created since January, 2009. That’s just a start, but it would be a huge step in the right direction — a step we absolutely need.

UPDATE: Chile, doing the exact opposite of Obama, Liberals, Keynes, is having an economic BOOM! Last year, Chile’s GDP rose more than 15 percent, and expectations for this year are an increase of more than 6 percent. Chile shrank their government to 5 percent of GDP, privatized their retirement, and opened up free trade dramatically. In addition, Chile’s corporate income tax rate is the second-lowest in Latin America. Chile’s 18 percent trails only Peru at 10 percent while Latin America averages 28 percent. The US is over 39 percent, trailing only Japan and by fractions of a percent, which was scheduled to drop their corporate rate below that of the US, for top corporate rate in the world.

Posted in Constitution, economics, Elections, food, Health Care, Obama, Oil, Over-regulation, politics | 2 Comments »

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