2008 Woodie Awards
Foreign oil dependence hurting U.S.
Kevin Harrison
Issue date: 4/10/07 Section: OpEd Page
As gas prices begin to climb again, Americans everywhere are left to wonder if there is any relief in sight. At the end of March, the national average cost for a gallon of gasoline had hit $2.76; an increase of 25 cents from just one month ago. Unfortunately for many drivers, this is an increase that they cannot afford. In light of this trend, it is time for the United States government to realize what many of us realized four or five years ago. It's time for a new fuel source.
In the 2006 fiscal year, the United States government spent $99 billion to finance relatively unsuccessful military operations in Iraq, compared to the meager $252 million - barely 0.25 percent of the spending done on Iraq - allotted to the Department of Energy to investigate alternative sources of power for vehicles. In the same year, we spent an estimated $320 billion to purchase crude oil from foreign countries to cover our domestic and military oil consumption.
The bottom line is that one of the most desperate economic needs of the United States is to gain independence from foreign oil. Imagine for a moment if the federal government financed imaginative and inventive Americans to find a viable alternative energy source with the same gusto they have funded the Iraq conflict. Imagine that we were able to turn the tables on the oil-drenched nations that comprise OPEC and were able to see incomes of $320 billion a year, instead of outlays. While the United States economy remains the strongest in terms of gross domestic product, discovering the replacement for the world's limited supply of petroleum would be a cash cow. Instead of wondering where the money could be found to finance programs to improve our citizens' quality of life, it would be readily available to us. The problem of financing Social Security, affordable healthcare and education would be solved.
During the third quarter of the last fiscal year, the United States economy took a dive, as gas prices soared. Retail sales declined 4.6 percent while overall economic growth decreased from a rate of 2.6 percent, to barely 2.0. As alarming a connection as this is, it reflects the reality of our dependence on the price of foreign oil and the success of our predominantly service-based economy. It also reveals the impact of the pinch at the pump on the spending (and economy-stimulating) ability of the American consumer.
If the United States eliminated, or even halved its dependence on foreign oil, Americans would not have to withhold money from the economy so they can fill up their gas tanks. Instead, they would have that much more spend or save, both of which benefit our nation by encouraging the reinvestment of capital in domestic businesses. Action needs to be taken on the spirited speeches advocating this the elimination of this crippling dependence. It's time the United States government stopped being blinded by pitch-black crude.
In the 2006 fiscal year, the United States government spent $99 billion to finance relatively unsuccessful military operations in Iraq, compared to the meager $252 million - barely 0.25 percent of the spending done on Iraq - allotted to the Department of Energy to investigate alternative sources of power for vehicles. In the same year, we spent an estimated $320 billion to purchase crude oil from foreign countries to cover our domestic and military oil consumption.
The bottom line is that one of the most desperate economic needs of the United States is to gain independence from foreign oil. Imagine for a moment if the federal government financed imaginative and inventive Americans to find a viable alternative energy source with the same gusto they have funded the Iraq conflict. Imagine that we were able to turn the tables on the oil-drenched nations that comprise OPEC and were able to see incomes of $320 billion a year, instead of outlays. While the United States economy remains the strongest in terms of gross domestic product, discovering the replacement for the world's limited supply of petroleum would be a cash cow. Instead of wondering where the money could be found to finance programs to improve our citizens' quality of life, it would be readily available to us. The problem of financing Social Security, affordable healthcare and education would be solved.
During the third quarter of the last fiscal year, the United States economy took a dive, as gas prices soared. Retail sales declined 4.6 percent while overall economic growth decreased from a rate of 2.6 percent, to barely 2.0. As alarming a connection as this is, it reflects the reality of our dependence on the price of foreign oil and the success of our predominantly service-based economy. It also reveals the impact of the pinch at the pump on the spending (and economy-stimulating) ability of the American consumer.
If the United States eliminated, or even halved its dependence on foreign oil, Americans would not have to withhold money from the economy so they can fill up their gas tanks. Instead, they would have that much more spend or save, both of which benefit our nation by encouraging the reinvestment of capital in domestic businesses. Action needs to be taken on the spirited speeches advocating this the elimination of this crippling dependence. It's time the United States government stopped being blinded by pitch-black crude.
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