Friday, July 17, 2009
What happens if we create an energy insurance plan?
When considering the Obama arguments regarding Health Care, such as "If we don't spend more, our nation will go bankrupt", what if we applied the same arguments to Energy and more specifically Carbon based energy.
In the 1970s, they did not say "we need to become energy independent, so green jobs will create a booming economy". They said, "We have an energy shortage". That meant that the demand for energy in the most prosperous nation on earth was higher than the supply available at that time. This caused high prices. I remember finding it difficult to afford gas as a young man, because of the shortage.
Why didn't they create "Energy insurance" or "gas insurance" for me. The rich could drive to grandma's house, commute long distances to a higher paying job and escape the crime ridden Leftist controlled Urban centers for the suburbs. I needed a subsidy and an insurance policy to allow me to meet my basic transportation needs so I could live the American dream. Without Grandma, higher pay, and a tranquil neighborhood, I could have spiraled into a cess pool of despair and poverty and even starvation.
Let's assume, they institute energy insurance today. Americans would have the choice to purchase "private insurance" by paying monthly premiums, that would deliver "Energy care" or an amount of gas that you need each month. You pay "reasonable" premiums each month. The average gas price would be $3.00 per gallon even when summer blends drive up costs.
What about the poor? What about those that can't afford much gas, or no gas at all. The government would provide "government option gas insurance" and you pay no premiums. When you need gas you go down to the gas station and fill up as much as you want. If Grandma lives 1000 miles away, go for it. Commute 3 hours each way if you please. Live in Aspen and use your "free gas card" to travel to work in LA.
Would gas consumption go up? Yes. Would the middle class suddenly start trying to qualify for "Government option gas insurance"? Yup! Would the total amount of demand for gas go up? Oh Yes.
But we have a shortage. We also are told there is a Doctor Shortage and a Nursing Shortage that is driving up costs, making it difficult for people to afford health care.
At what point would the government start telling you when to get gas and how much? They call it rationing. In the 1970s, they had odd even days where the last digit on your license plate decided which day you could buy gas. How does the government deter these poor gas guzzlers from loading up and driving like mad. What is to stop those same people from going to the MAYO Clinic when they have bad gas. How does Bill Gates get in to see his Doctor when he is in line behind the Bad Gas patients?
Its called rationing. Our current energy policy is designed to force us to consume less. Why did Obama consider suspending the Gas tax a gimick in 2008? Because he wanted high gas prices to inhibit consumption. He even said, if we suspend gas taxes, it would cause a spike in demand that would result in a shortage and even higher prices than before the tax cut. Huh?
Using that logic, cutting health care costs with Obamacare will result in a rush to scoop up cheap health care that would result in higher prices than we had before his Debacle.
Obama seems to have selective understanding of Supply and Demand. Which leads us to believe, this is not about relieving our burden, it is about taking control, which results in placing a bigger burden on every American, including those who are not yet able to vote against this yoke on our shoulders.