Friday, June 13, 2008

James Lileks on energy and "windfall profits"

As always James Lileks has some good sarcasm on the energy issues of today.
As I said on the Hewitt show tonight, I feel as if Bizarro World is slowly leaking into ours, and one day we will see Superman and note he has that ugly grey faceted skin, and wonder when that happened. Well, we just didn’t pay attention to the signs. In Bizarro World, illegal foreign combatants are granted constitutional rights; in Bizarro World, people react to high gas prices and energy shortfalls by refusing to boost domestic capacity. You have John McCain nixing ANWAR drilling and lending his sonorous monotone to cap-and-trade; you have Obama noting that gas prices rose too quickly, which presumably means he would have favored a gradual rise to ninety-buck-a-tank fill-ups;


It's sad given how let's be generous and say "cloudy" on energy McCain is, Obama still manages to be worse.

I’ve heard some people yearn for a windfall profits tax that would reinvest the money in alternative energy, or rebate it back to the consumer. Fine. Apply that to your business. Here’s the acceptable profit level. You don’t get to make any more than that. If you do, the state will confiscate the property and divide it among your competitors, or give it back to your customers. Have a nice day. But oil is different. It’s necessary! So is food. Farmers are doing well. Let us therefore set the acceptable level for corn farmers, take away the excess profits, invest it new forms of sweeteners or biofuels farmers cannot yet produce, and give people rebates for Splenda to compensate for the price of high fructose corn syrup.


"Windfall profits tax" also seems like a loser of an idea given a wobbly economy. I guess nothing improves buisness growth like increaseing command-economy style control and distribution of wealth.

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