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News Friday, May 09, 2008

Op-Ed / Richard Mays: The times they are a-changin’


Published: Thursday, May 1, 2008 4:02 PM CDT
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On that fateful September 11 in 2001, if you were watching television when the terrorists drove the airplanes they had highjacked into the World Trade Center, the Pentagon, and a field in Pennsylvania, you knew that from that point on, the world would never be the same. Not only would we be changed emotionally and spiritually from watching the events that caused so much loss of life and property, but we knew that the world would be a more dangerous place, and that we would have more restrictions on our travel, our access to public buildings, and our individual liberties.

In a somewhat less traumatic but no less forceful way, the world is now changing forever for many Americans due to a confluence of events in markets in the U.S. and throughout the world. When the price of gasoline shot past $3.00 a gallon, and then settled for a while near $3.50 (that’s for gas; diesel is at $4.00), it brought about the necessity for choices because we depend so heavily on gasoline, but also because the price of gasoline has far outpaced increases in earnings of working Americans.

To make matters worse, the cost of many commodities that we all use on a daily basis have also increased recently. Nationally, over the past year the prices of a gallon of milk and the price of eggs increased 35 percent; bread is up 16 percent; and a pound of hamburger rose by 8 percent. In 2008, America’s food prices are expected to continue to rise by 4 to 5 percent - double the increases of recent years. Food price increases are even greater in other countries, some of whom are experiencing a food crisis that has caused riots and, in one case, the overthrow of a government.

To make matters even more worse, the cost of medical care and medical insurance continue their seemingly endless rise. Medical insurance coverage for a small family cost more than $1,000 per month, and as a result, there are 47 million uninsured Americans. The majority of bankruptcies today are a result of uninsured people having the misfortune to get seriously ill.

Many people simply can’t afford to be insured, eat and drive their automobiles. America used to be a nation where we thought we could have everything. Now, for many, we are a nation in which critical choices have to be made. Many Americans will be forced to change their life styles in order to survive. Adjustment to a lower standard of living will not be easy or enjoyable.

So, what is being done, if anything, about this complex situation, besides praying for divine intervention? Those who look to the Federal government for help are not getting much satisfaction. President Bush is blaming Congress for the high price of gasoline, claiming that if it had authorized oil drilling in the Artic National Wildlife Refuge (ANWR) as he has asked, we wouldn’t be having these problems. Why Mr. Bush didn’t get that authorization when the Republicans controlled Congress and Mr. Bush had more credibility than he does now was not mentioned.

As usual, President Bush is wrong, and misses the point. He is wrong because ANWR reserves represent only a small percentage of the oil needed to meet our ever increasing needs, and would take years to bring into production at considerable risk to a very fragile environment. He misses the point because, instead of continuing what Mr. Bush himself has characterized as America’s “addiction to oil,” we desperately need to promote the development of alternative energy sources - which includes other ways to power our vehicles.

At the same time, Mr. Bush rejected suggestions from both Republicans and Democrats that he stop purchasing 67,000 barrels a day of oil for the Strategic Petroleum Reserve, a huge storage facility in salt domes along the Gulf Coast where one billion barrels of oil are to be stored for emergencies. Stopping those purchases would free up that oil for consumers, and - theoretically - reduce the price of gasoline. Mr. Bush refused to stop the purchases, saying it amounted to only 0.1 percent of world demand for oil (probably the same amount that could be produced from ANWR).

On the issue of rising food prices, Mr. Bush blamed the rising gasoline costs, which is partially true, and “massive, bloated” and “unnecessary subsidies” being paid to “wealthy farmers.” True, some farmers are paid large subsidies that are holdovers from times when they needed assistance from the government to stay in business. However, whether those subsidies are causing significant increases in food prices, as Bush claims, is highly questionable.

Experts agree that rising food prices are related to the diversion of huge amounts of corn and some grains to the production of ethanol for use in gasoline, where farmers can make more money. Virtually all of the increase in corn production in America in the past five years has gone to production of ethanol, and some farmers are switching from growing grains to corn for that reason. All of this reduces the supply of corn and grains for food, and raises the price of the supply that remains.

After blaming farm subsidies for rising food prices, he then called for more production of ethanol, which, according to the experts, would only divert more crops from food into ethanol, and make matters worse. Mr. Bush, like many other politicians, can’t get past the idea of running cars on some form of gasoline and ethanol, instead of alternative energy sources. That lack of vision is the source of our problems today.

The rapidly unfolding events taking place in the world today remind one of a verse in Bob Dylan’s 1964 song, “The Times They Are A’Changin’” which goes: “Come Senators, Congressmen, please heed the call. Don’t stand in the doorway, don’t block up the hall. For he that gets hurt will be he who has stalled. There’s a battle outside and it is ragin’. It’ll soon shake your windows and rattle your walls. For the times they are a-changin’.”

Richard Mays is a Heber Springs attorney and environmentalist whose commentary on politics and social issues appears each Friday.


Comments

Comments are limited to 200 words or less.

Al Foust wrote on May 8, 2008 9:56 PM:

" The problems we now face were very predictable, and in fact have been being predicted for years by radical right-wingers like me.

While the envirocrats have been trying to scare us about things that MAY begin to happen to us 100 years in the future, radical right wingers like me have been trying to get some of you to see what was almost certainly going to start happening much sooner unless we started telling the envirocrats to get out of our way!

Now I hate to say, "We told you so", but
WE TOLD YOU SO!

"

Al Foust wrote on May 8, 2008 9:36 PM:

" How are going to generate all the electricity for all of the hybrid cars that Richard and Co. want us to buy?

I live in coal country in Southern Indiana. In spite of all the coal that has been mined here during the past 100 years there is still more coal down there in huger, deeper veins than has yet been mined.

For the past forty years the mining/electric companies, with some help from the government, have been developing technologies to burn this coal cleanly.

But coal is merely another fossil fuel which Richard and his friends despise as much as they do oil, and, so far, they have been able to effective deter its extensive application.

If you want to blame and punish someone for the fact that our demand for energy exceeds its supply, you should look to those who have been religiously trying to deter better means of producing it, not to those who have been trying to produce more of it!


"

Al Foust wrote on May 8, 2008 9:10 PM:

" <<" Then where is it at?!!!>> Some of it has been spent on subsidizing investment in alcohol plants, so much so that 30% of our corn is being used to make ethanol. Did you think there were ethanol fairies?

Do you imagine that these tax breaks are just handed out without proof of having spent money in certain prescribed ways? They are permitted only for such kinds of activities as lawmakers themselves have determined may, in time, make us more energy independent.

It is difficult for me to believe that people such as you and Obama actually believe that by increasing taxes upon the producers of something you will get them to produce more of it! Please make a list for me of all of the times this has ever happened!

Do you imagine that all of the profits of the energy companies are simply being divided among the stockholders?
A very substantial portion of it is invested in research, development and exploration in areas where it is not yet illegal for them to do so, (such as Cleburne County). "

mr.S wrote on May 8, 2008 11:47 AM:

" "This is precisely what Bush and the last Republican Congress did! And it is precisely the issue Dems refer to when they criticize them for tax-breaks!" Then where is it at?!!! So far, I haven't seen anything but higher prices from them. Could the oil companies have an alternative but instead are going to rape us for evey penny we have before they implement? I want the solution. Why not hold the threat of withdrawing the tax breaks if something isn't implemented by, say, the year 2012 (or sooner)? We've been to the moon for god sakes!!! Which was an endeavour that went beyond money and politics. The time has come that energy and its outrageous prices have transcended politics and corporate rights, and something has to be done now!!! The Mad Max movies don't seem so far fetched if nothing changes.
"

Al Foust wrote on May 7, 2008 9:55 PM:

" And I suppose other prospects for celebration by lefties can be found here.

As we spend more on energy we will have much less to spend on all of the cheap products that the Chinese and others are manufacturing for our purchase. The result will be that the economic collapse that Mr. S. forecasts will be world wide.

But the results will be that the huge world-wide demand for energy that has created this crisis shall have diminished and oil price will plummet. World-wide starvation and disease will flourish.

But lefties will love it because it will infinitely provide excuses for a globalized welfare state, and, although there will doubtlessly be more deplorable living conditions, at least the planet will have been saved from the use of fossil fuels! (Except for their use in the weapons of war we use against one another to fight over the scraps!)



"

Al Foust wrote on May 7, 2008 9:30 PM:

" The price of gasoline, like the price of everything else, is a function of the relationship between supply and demand. If you want to lower the price of something then you simply must either produce more of it or use less of it.

At this point there simply is no way to very significantly increase the supply of energy very quickly. That project should have begun years ago rather than being blocked by the Druids.

So, for the immediate future, the only available solution to the problem will have to be less consumption, and that is already happening. Like everyone else, I personally have no choice in this matter! I find I am just not driving as much as I have thought in the past I had to.

And the bottom line on all of this is the point that I initially made: The environmentalist such as Richard should be celebrating this fact rather than trying to blame someone for it other than themselves. Their perceived threat to the planet is being diminished in just the manner they hoped it would be!
And the development and production of alternative energy is becoming more feasible. "

Al Foust wrote on May 7, 2008 9:05 PM:

" <<".why not provide the oil companies with large tax breaks for implementing major research in alternative fules (sic) such as hydrogen and bio-fuels...">>

This is precisely what Bush and the last Republican Congress did! And it is precisely the issue Dems refer to when they criticize them for tax-breaks!

Very significant carrots and sticks have been offered to the auto industry for years. But the main reason the auto industry had kept going back to bigger cars is that is what the American consumer has wanted, every time the price of gasoline has become somewhat stabilized for awhile. We simply don't like little plastic cars that are uncomfortable and unsafe at the speeds we like to travel.

Yes, sugar-cane is a much more efficient source of alcohol than corn, but it does not grow here nearly as well as it does in Central and South America. And the lands that can produce more sugar-cane will produce less rice, which is one of our few valued exports.

I understand that one of the more promising alternatives to corn is switch-grass, which can be grown on substantially less productive ground than corn. "

mr. S wrote on May 6, 2008 1:02 PM:

" potential energy per acre than that of corn and rice? Such as sugar cane, I think obese America could use less of sugar anyway. Brazil is totally self sufficient using sugar cane as a source of ethanol (which does produce more energy per acre than corn and rice). You could get new companies (maybe even oil companies) to raise farms of sugar cane to supply fodder for their ehtanol refineries by giving them incentives in the form of tax breaks and what not to get the ball rolling. I don't know, I'm not an economists, but something being done is better than nothing. And you have to start somewhere and fast. Otherwise, America is going to take a nasty fall. "

mr. S wrote on May 6, 2008 12:57 PM:

" I'm not an economist by no means, but common sense and my pocket book is telling me if gas and food prices keep increasing, we are going to see a major recession if not depression that has not been seen since the big one in the 1930's. So, what are we to do? Again, forgive my ignorance, but would it be possible to use the carrot and the stick method to goad the auto and oil industry to come up with solutions for cheaper energy and more efficient autos? For example, why not provide the oil companies with large tax breaks for implementing major research in alternative fules such as hydrogen and bio-fuels. To go further, maybe even put a deadline for them to come up with solutions or face not getting the tax break. Do the same with auto industry except have it focus on efficeincy and vehicles that can run on hydrogen fuels. You know they are in cahoots with each other on oil and fuel mileage. Furthermore, if we focus on bio-fuels to supplement some of the oil supply being used for fuel, why not encourage the growing of sources of ethanol that produce more... "

Al Foust wrote on May 2, 2008 1:16 AM:

" Okay, let's agree: The ever increasing cost of oil is doing grave damage to our economy, and ethanol was/is merely an exercise in political gimmickry that does more harm than good.

So, other than getting Bush out of office, what should we do to actually solve our problem rather than merely play politic? "

Al Foust wrote on May 2, 2008 1:07 AM:

" Well, those few who read my blogs here know that I do not often come here to defend Bush. Unlike Dick, I have NEVER been a proponent of either ethanol or farm subsidies.

And no, mere drilling in ANWR would not have prevented all of our increases in oil prices. But ANWR is merely a symbol of the war that environmentalists such as Dick declared upon our production of domestic energy years ago.

Why can't lefties be honest and simply celebrate their success? Years ago they began advocating a policy of making oil so expensive that people would be forced to quit using it. Over twenty years ago they were hopefully anticipating $5 per gallon gasoline, (which would be over ten of today's more worthless dollars.) In '93 Clinton/Gore proposed a .63 tax increase on gasoline in the service of this cause.

Bush was a very latecomer on ethanol, pushed there by environmental politics rather than good sense. (Once again he permitted the left to make a sucker out of him.) And for Dick to suddenly try to blame him for the increased prices of food is worse than disingenuous; it is reprehensible!
















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