The Conservative Edge

In some of my previous posts, I have likely mentioned the word “malaise” and the name “Jimmy Carter” in the same sentence. I have also been of the opinion that America is heading toward an economic freeze that will mirror that of the late 1970s. The reason for our stagnant economy is simple: we are led by the same sort of failed economic policies instituted by then-President Jimmy Carter and other Democrats.

I’m not the only one noticing the similarities. Former hedge fund manager and now talk show host Jim Cramer has written an excellent piece about a 21st-century malaise that is gripping American society. Cramer asserts that Carter’s infamous “malaise” speech sounds like something Barack Obama could have crafted. That’s not surprising. Both the former and the current President share decidedly anti-business, high-tax, big-bureaucracy ideals.

Here are some of Cramer’s remarks, as posted on Yahoo! Finance: “Malaise. The recognition that things are out of control and there is no getting better. The recognition that the president and Congress can’t create jobs and that we can’t stop the spill. The recognition that things are out of our hands. One true presidential historian/arbitrageur invoked the “pitiful helpless giant” speech, a true throwback, a miserable speech by Richard Nixon green-lighting the disastrous Cambodian incursion in order to defeat the indefatigable and ultimately undefeated North Vietnamese. Given our inability to subdue the Taliban, though, maybe the analogy’s not that off-base. It sure feels like we are stuck in a malaise and have been reduced to a pitiful helpless giant, hobbled this time by high debt, huge taxes, an anti-business agenda that is freezing job growth and an intractable economy.

To me, the coincidences are leading to what you see on your screen — a collective sense of ennui and ‘it isn’t worth it’ because things aren’t getting better, they are getting worse.”

Cramer further states: “This malaise, like the Carter malaise, starts from the top, although Carter’s speech was a thinly disguised attempt to blame the American people for the malaise and their unwillingness to sacrifice. I think it has to end at the top with a recognition from the president that jobs have to be created, uncertainty removed, the agenda shelved. He obviously has no intention WHATSOEVER of doing that. And I am not saying this as someone who favors or is opposed to Obama, I am saying it from the litmus I always use: Is something or someone good for stocks or bad? Obama’s bad.”

Cramer’s words are powerful, yet true. Americans were promised that the economy would be a priority. But the priority became, instead, the passage of liberal/leftist/socialist legislation, and subsequent growth of the federal bureaucracy. Financial reform, for instance, sounds great, but means absolutely nothing if Fannie Mae and Freddie Mac escape federal scrutiny. Health care reform sounds good too, but has caused uncertainty for many employers who fear the rising costs for providing employee health care plans.

So, the Democrats, led by Barack Obama, can continue to tax and regulate American businesses into submission, but there is one word that describes the result: malaise.

I’m sure that nearly everyone who reads this post is familiar with a certain line spoken at many marriage ceremonies. Namely, if someone has good reason why a man and woman should not be married, the person should “speak now or forever hold his peace.”

I’d like to pose a similar question about the development of American energy resources: Is there any good reason why we shouldn’t use domestic energy that is so readily available? There is much said about the need to wean ourselves from the use of foreign oil. That makes sense. But it would be equally sensible for our government to look for domestic resources to replace what we currently purchase from abroad.

It seems, however, that the liberal Democrats in Congress have a different idea. They really think that windmills and solar panels can reduce our dependence on foreign oil. That is a terrible misconception. Solar and wind power will never meet our transportation energy needs. In fact, oil may continue to be the dominant energy source until the year 2030. So, it becomes clear that a reliable supply of oil must be established for the American consumer.

Recently, the U.S. Geological Survey revealed that the Chukchi Sea, just northwest of Alaska’s landmass, holds 1.6 trillion cubic feet of undiscovered natural gas and 83 billion barrels of undiscovered oil. As the June 1 edition of the Investor’s Business Daily observes, that’s 30% of the world’s supply of natural gas, and 4% of global oil reserves, respectively. Tapping into those massive reserves would go a long way in establishing a dependable supply of domestic energy, as well as removing threats to our national security. We would no longer be held over a barrel, so to speak, by OPEC, the oil cartel whose membership includes several countries which are hostile to the United States.

I’m reminded of the Biblical story about the man who found a buried treasure in a field. Upon the discovery, he promptly sold everything he had to raise enough money to buy the field. In buying the field, then, the treasure belonged to him. He had sense enough to realize that the treasure was worth more than anything he had ever owned before. So, it was no big sacrifice to sell his posessions to be able to buy the land.

If only our government had the same kind of vision. Apparently, the liberals don’t value our natural resources. If our government doesn’t secure the oil and gas in the Chukchi Sea, the Russians will likely seize it. The Chinese are already moving in on oil reserves discovered off the coast of Florida. Foreign countries are determined to hoard oil supplies wherever they are found. But what is our current administration’s response? It suggests that we paint our roofs white, to make our homes more efficient.

Brilliant!

Have you ever been thinking about an issue that is important to you, and then see that issue expounded in a magazine or newspaper? Maybe you feel that nobody else could ever have the same viewpoint on a particular subject. But when you see an article that expresses your own point of view, it feels good, doesn’t it?

I’m having that good feeling this weekend. If you have read any of my previous posts (feel free to check the archives) concerning American energy production, then you know that we’re giving up on crude oil way too soon. I know that runs contrary to liberal thought. Those liberals evidently think that we should solve the foreign oil problem by just getting rid of cars altogether. And with the government now practically running GM, and with Chrysler in bankruptcy, we can see that the automobile is doomed. This administration is set to dismantle the car industry and the freedom of personal transportation.

Until that happens, we will continue to rely on the auto as our primary mode of transportation. Which means, of course, that we will need plentiful supplies of gasoline at reasonable cost. (No ethanol, please; that’s a terrible waste of corn that could be otherwise used to feed hungry people.) Crude oil must remain a vital part of our energy policy. Not only do we use it to make gasoline, but crude oil is also used in the manufacture of paint, plastics, rubber, and hundreds of other products we take for granted.

My regard for crude oil was reflected in the special Monday, May 4 edition of the Investor’s Business Daily. Within the editorial pages, Robert J. Samuelson writes “Wind and solar (power) mainly produce electricity. Most of our oil goes for transportation; almost none—about 1.5%—generates electricity. Expanding wind and solar won’t displace much oil; someday, electric cars may change this. For now, reducing oil imports requires using less or producing more.”

That’s been my position, and it makes me feel good to see similar thoughts expressed in a pro-American newspaper like the IBD. I’ve listened to Obama and the other liberals talk about job creation, but they are castrating American industry, especially oil companies and car makers. If we developed more resources here at home, think of the jobs that would immediately be created. There would be a demand for geologists, engineers, truck drivers, and refinery workers. This demand might be enough to give the economy the “jolt” that Obama promised.

We will never be able to wean ourselves off foreign oil by building more solar panels or wind turbines. Samuelson notes that in 2007, wind and solar generated less than 1% of U.S. electricity. Increasing that ten times will still have those industries contributing only 10% of our electricity needs. And that still would do nothing to reduce our consumption of oil.

Even though some resources, like oil shale, would take time to develop, that’s no reason to avoid getting started now. Remember, it’s also going to take a lot of time to establish that tenfold increase in solar and wind output. There is still the electric car that needs refinement, and fuel-cell technology that should be explored. Until these and other advancements become practical and affordable, we shouldn’t let crude oil fall out of favor. Two dollars for a gallon of gas is still a pretty good deal.