A Windfall of Idiocy

Hillary Clinton has is the latest entrant in the stupid economics tricks contest with her own version of a windfall profit tax on oil companies. Caution: If you don't know the difference between profit and profit margin, stop reading and go educate yourself. You'll be doing a great service to the country.

Hillary correctly counts on the fact that most people don't remember how this same policy not only didn't work in the 1980's, but reduced domestic production and increased dependence on foreign oil.

But she doesn't stop there in her demagoguery disguised as policy. She also wants to crack down on mythical price gouging and further regulate commodities markets with Soviet style command and control economics that have such a long record of failure that only fanatical collectivists and democrats fail to recognize it.

Remember folks: Every tax and regulation imposed on anyone is ultimately paid by individuals one way or another in the form of higher prices, shortages or any number of other costs. In short it means less freedom and more government.

Of course, no Democrat proposes to increase our own production in ANWR, the outer continental shelf or the Gulf of Mexico, where the Cubans and Red Chinese are exploring right now. Build our first new refinery in 30 years? Forget it. How about cutting down on the dozens of special blends required for dubious environmental reasons that cause refineries to shut down and drive up prices every spring and fall? No way. Expand nuclear power? Don't make me laugh. More coal production and gassification? You must be kidding.

No, The left's only solution to supply is the government mandated use of inefficient alternative sources of energy. That subsidized and tariff protected ethanol thing is working out great isn't it? There's a reason why no other civilization in history has burned its food for fuel. Because it's a really dumb idea. When an alternative fuel can replace oil on a level playing field, I'll be the first to use it. When they are forced on people artificially, you get what we have now. Higher food prices, starvation, riots and yes, deaths.




Related Note: The Fed reduced interest rates again yesterday, which will raise the cost of oil imports further as our dollars buy even less on the world markets. If the dollar was worth what it was five years ago, oil would be at least a third cheaper than it is now.