Gas is well over $4 a gallon in most places in California -- and soaring elsewhere as well. But are such high energy prices good or bad?
That should be a stupid question. Yet it is not when the Obama administration has stopped new domestic offshore oil exploration in many American waters, curbed oil leases in the West, and keeps oil-rich areas of Alaska exempt from drilling. Last week, President Obama went to Brazil and declared of that country's new offshore finds: "With the new oil finds off Brazil, President (Dilma) Rousseff has said that Brazil wants to be a major supplier of new stable sources of energy, and I've told her that the United States wants to be a major customer, which would be a win-win for both our countries."
Consider the logic of the president's Orwellian declaration: The United States in the last two years has restricted oil exploration of the sort Brazil is now rushing to embrace. We have run up more than $4 trillion in consecutive budget deficits during the Obama administration and are near federal insolvency. Therefore, the United States should be happy to borrow more money to purchase the sort of "new stable sources of energy" from Brazil's offshore wells that we most certainly will not develop off our own coasts.
It seems as if paying lots more for electricity and gas, in European fashion, was originally part of the president's new green agenda. He helped push cap-and-trade legislation through the House of Representatives in 2009. Had such Byzantine regulations become law, a recessionary economy would have sunk into depression. Obama appointed the incompetent Van Jones as "green jobs czar" -- until Jones' wild rantings confirmed that he knew nothing about his job description "to advance the administration's climate and energy initiatives."
At a time of trillion-dollar deficits, the administration is borrowing billions to promote high-speed rail, and is heavily invested in the federally subsidized $42,000 Government Motors Chevy Volt. Apparently the common denominator here is a deductive view that high energy prices will force Americans to emulate European centrally planned and state-run transportation.
That conclusion is not wild conspiracy theory, but simply the logical manifestation of many of the Obama administration's earlier campaign promises. Secretary of Energy Steven Chu -- now responsible for the formulation of American energy policy -- summed up his visions to the Wall Street Journal in 2008: "Somehow we have to figure out how to boost the price of gasoline to the levels in Europe." I think Chu is finally figuring out the "somehow."
In Honor of His 103rd Birthday, Here Are The 20 Best Quotes From The Late, Great Milton Friedman | John Hawkins