The Power of Power

Imagine that the cost of gas is so low, you could hop in a big SUV, drive across town, get what you need and do it the next day if you wanted to. Or, you could hop in that big car, drive off to Nashville or Little Rock and never even factor in the cost of gas.

How would it be to set the thermostat at 72 in the summer and 75 in the winter and still be able to buy food? To have plenty of hot water for everyone’s shower or to wash small loads of clothes without consideration of the MLGW bill? Maybe you would like an extra refrigerator or freezer, so that all you haul in your SUV can easily be available for dinner. A new appliance? No worry about energy efficiency.

Would you order more goods if shipping fees were negligible? Feel free to use Fed Ex without cost analysis? Enjoy lower costs of all things since more could be made in the U.S. inexpensively and without overseas transportation?

See our city boom with Fed Ex business exploding? See a boost in tourism and restaurant use? See China fade against our manufacturing and the Middle East become irrelevant to our energy supply?

Of course you would.

It’s not a dream. It’s Rick Perry’s energy/jobs plan. And it’s a winning Republican issue.

Cain has scored with his 9-9-9 plan, but when you look deeper into it, it is fatally flawed. First, it would be DOA in Congress. Cain does not have the governmental experience to work it through. Not just Democrats would oppose it, but Republicans, too. Wouldn’t it impose a big hardship on consumers? Yes. Lower income people would be less able to afford the basics. It would hurt older people and diminish Social Security. And what about jobs? Wouldn’t it lead to fewer after you got rid of the IRS (not a bad thing for all of us, but a lot of job losses) and who would need accountants?

As the Ace of Spades blogger says, in the 9-9-9 plan you are really just taking the same amount of money the government takes in and shifting it around. “Arranging deck chairs on a ship, not turning the ship around,” as he notes.

Ace continues: “Energy production is, however, tangible. It’s a valuable commodity. People will pay for it. And with more in country energy production, that’s more jobs and more tax revenues and lower energy prices, besides as OPEC’s ability to set prices is diminished.”

As one commentator said, opening up the country to more energy excavation does drive down the price of oil. When President Bush just lifted moratoriums on some of the offshore drilling restrictions, the cost of oil immediately went down and stayed down.

Construction workers, manufacturers, blue and white collar jobs, drilling jobs and everything that surrounds the effort, such as transportation and food, would get a boost. Certainly agriculture and food prices would go down when the production costs benefit from cheaper energy.

In addition, Americans could get that pesky power grid fixed and properly defended from attack. This is easily a national security issue.

Governor Perry was smart to introduce his plan in Pennsylvania. It’s an area that has greatly suffered but could easily have a comeback. Harrisburg, the capital, is the first state capital ever to declare bankruptcy. Things are that dire.

If President Obama loses Pennsylvania – and his numbers there are not good – he is toast.

Perry has introduced a very good plan. He intends to offer more economic policy this week. Hope people take a listen to his powerful arguments.

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