I suspect you know the answer to that question, don’t you? Politicians are much more interested in protecting and sustaining their position of power _ the bigger the government the more power they have _ than they are in solving the serious problems that are affecting most Americans. You know; things like jobs, declining real wages in the Middle Class, bankrupt social programs, and, of course, the ever-growing national debt.
There is a lot of nervousness in the world’s financial markets these days and that nervousness won’t go away just because the US government and the European Union spokespersons keep pretending that things are getting better. Here at Asylum Watch we discuss the many valid reasons for the nervousness on a regular basis. Today, however, let’s talk about one potential bright spot in the America’s economic scene that could make a significant positive impact on our economy.
America’s Strategic Advantage In Energy Costs
In spite of President Obama’s best efforts to slow down oil and gas production in the United States, there has been an oil and gas production boom thanks to the private sector development on private lands. Despite Mr. Obama’s plans to make electric costs skyrocket by forcing Americans to buy high cost electricity from wind farms and solar sources, coal-fired power plants have been converting to low cost (clean) natural gas and electricity cost have been moderated. Such is not the case in the European Union. For years, the Europeans have been shuting down nuclear and coal-fired power plants in favor of high cost green energy. According to this article, the EU is now in a panic to rethink their green energy policies. European worries over America’s competitive advantage in energy cost was a principle topic of discussion at this years World Economic Forum at Davos:
It all comes down to shale gas and the energy revolution it has triggered in the United States. As a result of the rapid advance of shale technology, the United States now has an abundance of low-cost natural gas — at one-third the price of European gas. European industrial electricity prices are twice as high as those in some countries and are much higher than those in the United States. To a significant degree, this is the result of a pell-mell push toward high-cost renewable electricity (wind and solar), which is imposing heavy costs on consumers and generating large fiscal burdens for governments. In Germany, it was further accentuated by the premature shutdown of its existing nuclear industry after the 2011 Fukushima nuclear accident in Japan.
All this puts European industrial production at a heavy cost disadvantage against the United States. The result is a migration of industrial investment from Europe to the United States — what one CEO called an “exodus.” It involves, not only energy-intensive industries like chemicals and metals, but also companies in the supply chains that support such industries.
America does have a strategic economic advantage over Europe due in large part to lower energy costs and there are various ways to increase that economic advantage and bring jobs to America. All it would take would be for our politicians to act in America’s best interest instead of their own. All they need to do is to make decisions based on sound science and sound economics rather than making decisions based on politics.
It’s not rocket science. We have an energy cost advantage. Let’s build on it, Mr. President. Approve the Keystone pipeline and open up federal lands to develop even more oil and gas. We could add to our economic advantage by reducing what is the highest corporate income tax rate in the world to something more reasonable. Congress has the power if they would use it to tell the green Marxist in the EPA to take a hike and put a stop to their extremist job killing regulations. It is estimated that American corporations are sitting on up to $4 trillion from after tax profits earned in foreign countries. They won’t repatriate that money and invest it in America because our government wants a 35% cut of it. Eliminate or reduce that tax on foreign earnings and let that money be reinvested in America.
Do all of the above and watch our economy take off. Unfortunately, in my opinion, politicians are part of the problem; although we elect to be part of the solution.
Well, that’s what I’m thinking. What are your thoughts?