Is This the Way to Run An Economy?

Today we were given the news that unemployment went up from 9.6% to 9.8%. The news was a surprise since the rumor on the street was that we were supposed to be hearing about a gain of 145,000 jobs.

On the heels of this news is the news that the Obama Administration is starting a new offshore drilling moratorium. No, you didn’t miss the latest oil spill. It didn’t happen. The government is saying that the Deepwater Horizon disaster is a contributing factor, but not a direct reason. This isn’t a brief six month moratorium for the purpose of tightening up regulations. This is a seven-year moratorium to tighten up regulations. Seven years? What regulation can be conjured up that hasn’t already been tried? What safety program will take seven years to implement? The truth is that the safety excuse is a smokescreen. If it wasn’t, the Obama administration would go before the United Nations and recommend that all countries ban offshore drilling. But they didn’t. As a result, other nations are grabbing the drilling sites and in turn, the supply of oil. What does this mean for the United States? A loss of over 9,000 jobs was attributed to the six month moratorium. What do you think seven years will do?

Another effect of the moratorium is pretty obvious. If our oil supply is decreasing and foreign supply is increasing, then we are becoming more dependent on foreign oil. Dependence on foreign oil can be argued, very convincingly, is a HUGE driver of our foreign policy. Ok….I’ll stop being cute, because even liberals says that we fight wars for oil. Of course this all leads to higher oil prices, whether it is based on real shortages, or shortages created in our minds by speculators. Energy prices will rise. But it doesn’t stop there. Petroleum is used in manufacturing and transportation. The prices of all consumer goods will rise.

Higher unemployment. Higher energy prices. Higher consumer good prices. Greater expenses with less money to buy them with. Is that a winning formula Mr. Obama?