1/31/2006

What's the threat?

As I was reading a blog today, I was immediately drawn to the blogger's comments regarding Thomas Friedman's ideas. I was especially interested because I am currently reading Friedman's book "The World Is Flat", and have been very impressed by his thoughts and observations thus far into my reading. However, in the blog I read today, the blogger clearly felt different than I did about Friedman. The blogger seems to take issue with Friedman's position that Bush should take more serious measures to become less oil dependent, and more alternative energy efficient. I read the link that was included in the blog and again found Friedman's viewpoints favorable. Friedman has a very valid point. The U.S. needs to shift its priorities, most notably by scratching off foreign oil dependency. The government needs to start being a little more proactive, and innovative. If money is the issue, perhaps simplifiying the tax code, wasteful paperwork, or never ending supply of red tape could help them funnel in some more funds. Besides, what could yield this nation a greater return than new knowledge, and technology in the ever growing energy arena?

3 comments:

Dr. Tufte said...

Friedman's book is not highly thought of by economists who are familiar with it (and their points have seemed sensible to me). On the other hand, I haven't read it, so I won't criticize it further; and I am interested in figuring out what is so appealing about it (other than he has the deep and wide media connections to help market it).

On the issue of energy independence, this is a popular position that does not have sound basis. Worse, it is often pushed by folks who are covering up their bigotry, tribalism or racism with the fancier clothing of energy independence (please note that this is not a statement about my students, but rather something I want them to mull over).

We really need to ask ourselves how we should feel about someone who is asking us to switch to the high price vendor? Further, in the case of oil in the U.S., it is usually the same people who have enacted measures that have pushed up those prices who are trying to encourage us to pay them. It's hard to see how that can be efficient or even beneficial. So they stretch the argument: it's a security issue, or it's an environmental issue, or it's a fairness issue. These are cop-outs. The real issue is control: some people just can't handle the fact that they can't control everything. Why is it that we're worried about Utah's trade deficit on oil with Saudi Arabia, but not Utah's trade deficit on oil with Louisiana? It isn't the oil, and it isn't the deficit, so it must be that in some sense, Louisiana is us and Saudi Arabia is them. There are elements of that that are true, but there are elements that aren't - like, say, that our friends are the ones that sell us stuff more cheaply than our enemies. People like Friedman forget that.

Dr. Tufte said...

" The United States currently lacks control over oil and that is a very scary situation."

Q. Precisely when were we ever in control of oil?

Q. Who are we worried about (the biggest import source of U.S. oil is ... Canada)?

Q. A majority of "oil companies" are American, yet a majority of oil is already consumed outside of America - in what sense is there a preferential relationship that we are at risk of losing?

Dr. Tufte said...

Entering "sources of oil imports" into Google yields this as the top site: http://www.eia.doe.gov/pub/oil_gas/petroleum/data_publications/company_level_imports/current/import.html

Yes, it is hard to get a correct read on this issue from the legacy media.

Yes, Canada does produce its own oil.

No, Canada is not a transshipper of oil. Most oil is not transshipped (imported for the sake of exporting later). However, it is often imported in one form, refined, and then exported as a different good.

I think your last paragraph has some merit. However, China currently has good relations with many parties only because of lack of exposure - totalitarian governments rarely make fast and steady friends.