Detroit News: Obama energy plan populist pandering
posted at 8:55 am on August 5, 2008 by Ed Morrissey
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If Barack Obama hoped to ride a new wave of energy from his speech yesterday in Lansing, the Detroit News tells Obama that he hit a dry hole. Scoffing at his populist attack on oil companies, the editorial board compared his energy policy to those of Richard Nixon and Jimmy Carter, which they didn’t mean as a compliment. They wonder where he plans to actually get more supply — a subject Obama avoided:
Draining the [Strategic Petroleum Reserve] would drop consumer fuel costs for the short run, as would any sudden increase in supply. But then what? Once the reserves are gone, prices would go back up, and perhaps even higher because the reserves ultimately would have to be replaced.
Oddly, although Obama’s proposal shows he recognizes the impact of supply on prices, he remains hesitant about lifting the congressional ban on off-shore drilling. Credit Obama for moving slightly away from the hard-line no drilling position of the Democratic congressional leadership by saying he’d consider “limited” coastal drilling if it were packaged with big increases in government subsidies for alternative energy development.
But at the same time, he proposed taking away any incentive oil companies would have to expand drilling and increase supplies by pushing a windfall tax on Big Oil’s profits to fund the $1,000 rebate checks.
Perhaps the senator is hoping the checks will make Americans forget, as he apparently has, about what happened when Presidents Nixon, Ford and Carter played the price and profit limiting game the 1970s.
What happened? The government put disincentives on drilling and exploration in the form of higher taxes, because the eeeeeeeevil oil companies made too much profit. Just as now, instead of limiting the profit, it forced the oil companies to keep their profits instead of investing in new supply. Prices went up rapidly as demand outstripped the artificially limited supply, and oil companies made even more profit which they couldn’t put back into supply.
This rapid expansion of profit created an opportunity for Jimmy Carter to demonize the oil industry and get the disastrous windfall-profits tax passed. What did this do? It provided even more disincentives to American oil companies, but opened the door for the state-owned foreign companies to sell their own product at an advantage. It made the US even more dependent on foreign oil than ever, which is exactly what will happen when Obama re-enacts the Carter Era as President (and not just on oil policy, either).
The News addresses one point that has been mostly overlooked by the media in their coverage of the energy-policy debate. If we aren’t facing a supply crisis, as the Democrats insist by saying we can’t drill our way out of this, why release oil from the SPR? Doesn’t that in fact acknowledge that we need more supply on the market in order to lower gas prices — and shouldn’t we work to start building long-term plans to ensure good supply for the future?
Don’t expect any sensible conclusions from Obama, though. As the News notes, he’s selling the same populist pap we were fed in the 70’s about the eeeeeevil oil companies and the need to punish them for doing exactly what they’re supposed to do.
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Oh stop making sense, Ed.
Akzed on August 5, 2008 at 9:03 AM
It’s refreshing to see at least one newspaper out there actually asking the real tough questions of B.O., instead of bowing down in homage at the very mention of his name, as has now become the standard practice of the NYT, among others.
pilamaye on August 5, 2008 at 9:06 AM
And funny, the MSU school paper says Barry is a celebrity…
Obama’s celebrity may bring new voters to polls
benrand on August 5, 2008 at 9:06 AM
Obama continues to remove all doubt he is the most naive and incompetent candidate for president in our history. This has become so obvious that it is embarrassing.
volsense on August 5, 2008 at 9:07 AM
Obama simply needs a focus group to re-evaluate the $1,000 rebate. He already knows what the average American has become. He just needs a better handle on the price.
Star20 on August 5, 2008 at 9:08 AM
A politician pandering to the unwashed masses?
WHAT A SHOCKER!
McCain would NEVER ever ever do that! Only Obama!
But, yes, doing anything with the strategic oil reserves is a dumb idea.
Dave Rywall on August 5, 2008 at 9:09 AM
Nice to see the News is still one of the rare big-city editorial pages that gets it (Tony Snow used to be their editorial page editor, and Lord knows, the politicians in the state and local government always give them tons of material to work with). They probably also should have mentioned that, if Obama is elected, families with more than one vehicle should make sure they have at least one odd- and one even-numbered license plate for filling up with gas on alternate days, when the Carter-era fuel rationing returns.
If you follow the Democrats’ mantra against drilling to its logical conclusion, they should be fighting to stop existing drilling going on right now in the Gulf off Texas, Louisiana and California, let alone within the states, because drilling can’t solve the problem. Or at the very least, the Democrats running for office in those states should make key parts of their campaign platform the promise ending drilling, confiscating oil company profits and putting all the money into wind, solar, growing more oil-producing plants and free tire gauges. We’ll see how well that goes over with voters.
jon1979 on August 5, 2008 at 9:09 AM
I knew that speech wouldn’t fly in Michigan. Even if Lansing is liberal, the home of the Motor City is just the wrong venue. What one might call an unforced error.
Glad to see the Detroit News calling him out.
BigD on August 5, 2008 at 9:11 AM
The Detroit News is more conservative than its rival, the Detroit Free Press. That said, Michiganders don’t have a lot of love for the national Democrat party right now. In recent weeks I have seen a lot, a real lot, of “Drill here! Drill now!! bumper stickers heading up I-75 or US-23. Want to get a real thrill? Pull into the parking lot of Cabella’s, a major mega-outdoors store in Dundee with an Obama bumper sticker. Right in the middle of Ted Nugent country. Folks will eat you alive before you step out of your Volvo.
For all their foibles…I think most of Michigan understands a con game when they see one. Most of Michigan. Not all. But, enough, one hopes, to reject this hope and change fantasy, er, promise. I think Obama in Lansing pretty much sealed it. I’m glad the Detroit News pointed this out.
coldwarrior on August 5, 2008 at 9:22 AM
My sister, who avoids politics normally, heard Obama say his bit about windfall taxes to finance rebate checks in a clip on the local news. She was shocked that he would propose something like that. My own thoughts were along the lines of, what next? Windfall taxes on WalMart? Microsoft or Apple? Who’s next to get punished for making money?
smithinmich on August 5, 2008 at 9:29 AM
So Obama’s energy plan centers on draining our Strategic Oil Reserves, putting out national security at risk, and putting air in our tires.
This is one dangerous, sophomoric windbag.
fogw on August 5, 2008 at 9:34 AM
Nice job by the d-news of pointing out the obvious. I find it sad the elected representatives of Michigan want to re-make the former auto manufacturing capitol of the world in to the green manaufacturing capitol of the world, led by Obama. The I-75 corridor from Detroit north to Saginaw is going to vote for the D’s no matter what gets said or promised.
Michigan is doomed.
swami on August 5, 2008 at 9:37 AM
He is totally stuck in the Carter era. I can remember the gas rationing and long lines. It wasnt a pretty sight…and this generation wont know how to deal with that mess. Unbelievable.
becki51758 on August 5, 2008 at 9:39 AM
Actualy, they miss the even bigger point…
Obama’s $1000 check is blatant bribery. Its a vote buying conspiricy. He is literaly promising $1000 to every family if he is elected, how is that NOT bribery or vote buying?
Its one thing to say “I’ll lower taxes and an average guy should get…”… but this is giving a concrete set amount in the form of a check…
Romeo13 on August 5, 2008 at 9:41 AM
What a presidential grasp of the obvious he has! This is akin to saying he recognizes that the sun rises in the east. The scary part is that he only began to recognize it when Bush lifted the exec drilling order and crude prices dropped.
whitetop on August 5, 2008 at 9:50 AM
I know! Let’s nationalize the oil companies!
Seixon on August 5, 2008 at 9:52 AM
“A democracy cannot exist as a permanent form of government. It can only exist until the voters discover they can vote themselves largesse from the public treasury. From that moment on, the majority always votes for the candidates promising them the most benefits from the public treasury, with the result that a democracy always collapses over a loose fiscal responsibility, always followed by a dictatorship.”
–John Tyler, in his 1770 book, “Cycle of Democracy”
Star20 on August 5, 2008 at 9:55 AM
Too bad that our Senators are two of the most left wing idiots in the Senate.
benrand on August 5, 2008 at 10:01 AM
Step #1; Obama taxes the oil companies to provide each American with a $1,000 vote bribe.
Step #2; Oil companies raise prices the equivalent of $1,000 for each American.
Star20 on August 5, 2008 at 10:21 AM
Please note that Barry has used windfall profit schemes before, to disastrous results. Via Stanley Kurtz:
Read on to see how well this flim flam man’s scheme worked out for the state of Illinois…
Buy Danish on August 5, 2008 at 10:23 AM
Lyle Rossiter in his book “The Liberal Mind” describes a liberal as one who is sick, driven by an obsessive compulsion to control people they see as inferior to their intellect. Reid and Pelosi are at the advanced stages of this condition, but Obama is trying hard to pass them. The arrogance of this trio is nauseating
volsense on August 5, 2008 at 10:24 AM
Would this be a rebate to those who actually have a vehicle registered as ownership .. or .. just a hand out to everybody who filed a tax return regardless of whether or not that actually paid any taxes?
Obama’s not happy just redistributing my taxes to those who didn’t pay any now he wants to redistribute my mutual fund.
Texas Gal on August 5, 2008 at 10:32 AM
As much as I appreciated the stimulus cheque, the $1000 cheque as proposed by Obama is just as asinine.
I’m sorry, you know what would help my pocket book? If oil, gas, and food was cheaper, not some random cheque from the government. How about some more oil in the marketplace that is oh, say drilled in America to decrease the price of oil? Then would decrease the price of gas and food.
mjk on August 5, 2008 at 10:45 AM
Shhhh! He’s saving that for after he’s elected!
4shoes on August 5, 2008 at 11:04 AM
What makes you think you’d be getting a $1,000 energy rebate check? Those checks will only be for people in need, and odds are you either won’t be below the threshold or will at least be on the sliding scale for practically nothing.
Dusty on August 5, 2008 at 11:10 AM
He’s buying votes at a thousand dollars a pop and that thousand dollars is taxpayer money. Talk about audacity.
UnEasyRider on August 5, 2008 at 11:29 AM
Great pickup. The worthless and dying Chicago papers are incapable of professional journalism with respect to Obama, and for that matter Jones.
Jaibones on August 5, 2008 at 11:41 AM
That’s the money quote, Ed, you nailed it.
I am also reminded of Fred Thompson’s description of Obama as “George McGovern without the experience.”
glendower on August 5, 2008 at 11:42 AM
Ummm I think you mean it has BEEN doomed.
Largest population on welfare in the Nation. yeah that is something to be proud of.
Those people who actually own businesses in that State I feel sorry for. Taxing them into oblivion via their legislature, the Gov and now Obama… think about it.
Anyone want to buy so cheap yet heavily taxed land?!
upinak on August 5, 2008 at 12:09 PM
The ultra left DETROIT NEWSISTAN critical of the ultra left B.HUSSEIN… Be still my quaking heart… Watched some of B. HUSSEIN on FSN yesterday. Michigan has the worst economy in the country at this time. To see the crowd in Lansing cheering this MORON was beyond the pale. This EMPTY SUIT’s policies will not only be detrimental to the Michigan economy, it will drive a STAKE right through the heart of the AUTO INDUSTRY… Make sense to you??? Three cheers for B. HUSSEIN…
pueblo1032 on August 5, 2008 at 12:25 PM
I live in the corridor and you are likely right about the voting patterns. The state as a whole could go McCain. It is a key state this election. The part of Michigan that would reject Obama is fairly conservative. Romney took the Michigan primary
.
Note the weak showing of Fred and Giuliani. If you want Michigan take Romney as VP. Other choices may be as conservative, but the Romney brand name is the only trusted one here. Michigan is in bad shape and people will not take chances. During the primaries, McCain made an off the cuff remark that jobs overseas are not coming back. Romney immediately responded with confidence that of course they can come back. Romney makes McCain work here.
BTW the liberal corridor is one of the most gas dependent areas you can find. The auto dependent life style was perfected here, from distant shopping malls, to highway job commutes, it is hard to get the food home without a car
entagor on August 5, 2008 at 12:52 PM