Last week
President George W. Bush held a press conference on the current state of the
economy and the high cost of energy.  In it he made several important points. 
First, he noted that one reason gas prices are increasing is that global supply
has not kept pace with the growing demand worldwide.  Members of Congress, he
noted, “have been vocal
about foreign governments increasing their oil production; yet Congress has been
just as vocal in opposition to efforts to expand our production here at home.
They repeatedly blocked environmentally safe exploration in ANWR. The Department
of Energy estimates that ANWR could allow America
to produce about a million additional barrels of oil every day, which translates
to about 27 millions of gallons of gasoline and diesel every day. That would be
about a 20% increase of oil…and it would likely mean lower gas prices.” 

Senator Charles
E. Schumer’s (D-NY) response: “Unless the
[Bush] Administration gets [the Organization of Petroleum Exporting
Countries]
OPEC to
increase oil supply, American consumers are going to be in for a scorching
summer of $4 gasoline with no relief in sight.”  Apparently Senator Schumer
expects President Bush to bully other countries into relieving our economic
problems.  This is wise foreign policy advice if ever there was some.  And if
foreign governments do not want to help us we should not expect Congress to do
anything about it.  After all, why alleviate needless financial hardship when
some Senators can use it as a political weapon?

Another factor
contributing to the high cost of energy is that America’s refining capacity has been
stagnant for 30 years, the last time a new refinery was built.  Like ANWR
exploration, Congress repeatedly has blocked efforts to build more refineries
and expand capacity.  It has done the same with the use of nuclear energy. 
Congress also is “considering
bills to raise taxes on domestic energy production, impose new and costly
mandates on producers, and demand dramatic emissions cuts that would shut down
coal plants, and increase reliance on expensive natural gas,” as President Bush
stated.

Finally, there
is no end in sight for Federal subsidies to multi-millionaire farmers.  These
subsidies, as this column has noted before, cost American taxpayers millions of
dollars a year, are wasteful, and generally hinder the development of more
productive farmland and the planting of market-driven crops.  Yet Congress shows
no inclination to cut subsidies from the current Farm Bill.  By paying farms to
plant specific crops regardless of the demand for those crops or allowing their
fields to lie fallow, these subsidies unintentionally raise the price of other
commodities that could be planted instead.  President Bush was correct to note
that Congressional support for farm subsidies will do little other than
contribute to the rising prices of food.

President Bush
should be commended for giving this speech.  He was correct to remind Americans
that if we want to lower the cost of energy we must be willing to use our own
resources, whether they are natural or those we can build, rather than rely upon
others to provide for our needs.  After all, isn’t self-reliance part of the
American spirit.  We should not rely on foreign governments, many of which are
volatile, to supply our energy needs, nor should our large farmers rely on
Federal Government handouts to prop up their financially lucrative
businesses.

Throughout this
economic downturn it has seemed as if Congress, the Federal Reserve and other
government agencies have reacted to the crisis rather than thought of productive
ways in which they could lead on the issue.  It is wise for the President to
begin to exert some leadership on this issue.  Hopefully he will maintain a
spotlight on this issue and pressure Congress to initiate some constructive
change, not implement more regulation and
taxes.

 

Guest columns do not necessarily reflect the views of Accuracy in Media or its staff.

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