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Smith
Faculty Opinion Article
The 30
Seconds Outlook
July 1, 2008
"Politicians
have made absolutely dreadful
choices, many of which were obvious
even at the time."
-- Dr. Charles Lieberman,
Advisors Capital Management, June
30, 2008.
Who's to blame for the boom in
crude oil prices along with fears of
inflation and recession? Excluding
the huge increased demand for oil in
rapidly growing foreign economies,
the answer lies primarily with
Congress. Congress has sacrificed
the public interest in the face of
an obvious emergency with its
devotion to environmental supporters
and its refusal to work with the
White House. What has not been done
is to plan and act. There is obvious
need to develop sources of natural
gas and crude oil, both inland and
offshore. There is obvious need to
fund research and development of
economical applications of
alternative fuel sources, such as
coal liquification, hydrogen and
electric cars, wind farms and solar
panels. And, by the way, there is
need to provide for future water
needs, such as in California, by
installing water desalinization
facilities. But, what should be
stopped is use of corn ethanol,
which increases the cost of feeding
our population. Nuclear power plants
should not be pursued. The time to
come online is much too long and the
dangers from terrorists and storage
of spent fuel are real. We have a
vital private sector working to
develop and apply economical
alternative fuels. But, Congress and
the President need to establish a
public-private "Marshall Plan for
Energy" to set priorities, plan, and
fund research and development on a
long-term basis.
by John A. Haslem
John A. Haslem,
Professor Emeritus of Finance,
University of Maryland.
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