Back in Black, Not

Well, after a long-weekend-soccer-tournament-in-the-blazing-heat-that- resulted-in-an-enforced-absence-from-blogging, I’m back. Exhausted, dehydrated, but back. Just imagine the massive carbon footprint the tournament inflicted on the poor earth of Middle Georgia. Can’t you see it, there on the horizon? That dark little cloud southwest of Atlanta?

If Congress has their way, driving long distances for sport and pleasure will be just fond memories. Rather than accessing energy when America desperately needs it, Congress proposes a bill that will enact a massive indirect tax burden on every sector of our economy while creating new and exciting career opportunities for lobbyists and environistas and pads OwlGore’s bank account. Just how out of touch with everyday American reality are these folks??? Cap’n Ed gives the Econ 101 lesson:

Any policy that drives up energy costs will have a disproportionate effect on lower-wage earners and those with fixed incomes. Energy prices affect prices of all goods brought to market, which erodes buying power through inflation. We saw this in the 1970s when Congress, as it does now, restricts domestic development of energy supplies and attempts to tax or regulate energy production.

As the cost of goods goup, the proportion of disposable income declines, which means that people wind up buying less. This proportional effect on disposable income increases for those earning less, who use a higher percentage of their wages for essentials. The squeeze results in a lower standard of living for those who can ill afford it, while remaining more or less a nuisance for those in the higher tax brackets.

Across the board, however, consumer confidence will drop and capital investment will dry up. The economy will start declining as prices rise in this manner as investors move to defensive postures. The economy will turn towards “stagflation”, that condition we saw thirty years ago that resulted from economic mismanagement but at the core was caused by energy shocks. And Lieberman-Warner promises a return to those policies.

It will be the ’70’s again, but without The Circle.

Or Tinker Bell.

Everyone else has a shot at our crude oil resourceswhy not us? Why must we freeze, while Saudi princesses dance around in Tiffany tiaras? It’s the Democrats, stupid.

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