More liberal lies about energy

This idiot speaking before Hillary said that the U.S. uses 25% of the world's oil but has only 3% of the reserves.

First, that's proven reserves. Reserves are in fact not going down, but constantly going up despite global consumption. That's because because we keep discovering new reserves that exceed what we take out. The world consumes about 87 million barrels of oil per day, so Brazil's new reserves of 33 billion barrels could alone supply the world's needs for just over a year. And what about all the other deposits we know about and will likely continue to discover?

Second, the moron is confusing consumption with total supply, just like there's a difference between income and savings. The former is a rate at which the latter increases or decreases. If a wife is using 25% of the family's income but personally contributed only 3% of the assets, that's not necessarily a problem. What if the family spends $100,000 a year but has billions in wealth? If the U.S. uses 20 million barrels of oil per day. That means a newfound deposit of 20 billion barrels will by itself supply the U.S. for 1000 days.

Now the idiot is talking about Obama's plan to invest $150 billion over the next 10 years in "green technology," how it will create 5 million new jobs. Don Luskin debunked this in June:

Let's see... $150 billion over ten years is $15 billion a year. Let's see... 5 million jobs. That's $3,000 a year per job. Let's see... that's a wage rate of about $1.40 an hour. If those are "good" jobs, I'll take a bad one if you don't mind.

Does this mean Obama favors repealing the minimum wage?

All you need to do is put things in perspective, to think for a minute that a billion is a thousand millions, and liberals' lies become so transparent.

Good lord, the fucker is so obese, he can't even fully button his shirt collar. Reminds me of Peter Jackson at the Oscars a few years ago. Surely they make enough to afford a decent shirt with a collar that fits?

The truth about oil versus gasoline prices

Updated: the formatting was off on the chart. It's more readable now.

This New York Post article jumps on the tired old bandwagon: oh, those evil oil companies raise prices quickly and lower them slowly!

There are several reasons why this argument is completely false and absurd, not to mention dishonest when you look at the numbers.

First, it compares crude oil's $140 very temporary peak with pump prices that don't fluctuate as quickly. Short-lived peaks tend not to be reflected at the pump, because station managers prefer to keep prices stable: consumers like a stable price that's a midpoint of fluctuations, rather than a constantly changing price, because it minimizes their costs of searching for and remembering gas prices. So if oil peaked at $140 for a few days and averaged around $130 for a longer period of time, you won't see a 7.7% drop of pump prices. The pump price changed based on oil's price over a longer period of time, not to mention the lag time of several weeks that's required to refine crude oil into gasoline and deliver it.

A while back I sent Don Luskin the link to a story describing how gas stations -- yes, gas stations! -- are hurting. Believe it or not, gas stations have razor thin profit margins of a few cents per gallon, and that's before paying fees to a credit card company.

Second, the graph is statistically absurd and completely dishonest. A proper evaluation of crude versus gasoline requires much more than just the last ten months of prices. Also, the y axes have been dishonestly misaligned. An honest graph would have started with a base of zero, but here there are offsets, which were chosen carefully and deliberately. The only reason to choose them is force the prices to appear somewhat correlated until the last little while, which isn't true.

Third, oil and gasoline have separate price elasticities, on both the supply and demand curves. It's partly because not all oil is converted into gasoline, and mainly because sunk costs, marginal costs and marginal revenues are very different for the two.

Fourth, the truth is that gasoline prices have gone up more slowly than crude prices. Let's take a look at some numbers. The Department of Energy provides historical gasoline pump prices from 1978 forward and historical crude oil prices from 1993 forward. However, I went back only to 1997 for my analysis. Crude prices from 1993 through 1996 are spotty, and it's simply poor statistical work to interpolate one week's price for an entire year.

The only difficulty is in formatting the numbers. After that, it's just a matter of applying common sense, instead of succumbing to anti-capitalist hysteria. Look at the ratio of a barrel of crude to a gallon of gasoline: the truth is that the price of oil has increased much faster than the pump price of gasoline, precisely the reverse of these accusations of price-gouging! If anything, oil companies are doing a favor to consumers by increasing gasoline prices more slowly than the price of crude has gone up, wouldn't you say?

Actually, no. They're still acting in their self-interest, but for each product, the price charged is what people are willing to pay, and the different rates of price increase are merely demonstrative of the different price elasticities.

Lots of numbers follow:

               U.S. All Grades All
               Formulations Retail    Price per   Ratio of crude
               Gasoline Prices        barrel of   price to
    Date       (dollars per gallon)   crude       gasoline price
----------------------------------------------------------------
Jan 06, 1997          1.272           22.90           18.00
Jan 13, 1997          1.287           23.56           18.31
Jan 20, 1997          1.287           22.79           17.71
Jan 27, 1997          1.284           21.83           17.00
Feb 03, 1997          1.282           21.16           16.51
Feb 10, 1997          1.280           20.97           16.38
Feb 17, 1997          1.273           19.93           15.66
Feb 24, 1997          1.270           19.38           15.26
Mar 03, 1997          1.261           18.05           14.31
Mar 10, 1997          1.253           17.74           14.16
Mar 17, 1997          1.246           17.79           14.28
Mar 24, 1997          1.250           18.36           14.69
Mar 31, 1997          1.246           17.95           14.41
Apr 07, 1997          1.248           17.09           13.69
Apr 14, 1997          1.244           16.55           13.30
Apr 21, 1997          1.245           16.32           13.11
Apr 28, 1997          1.240           16.59           13.38
May 05, 1997          1.238           16.98           13.72
May 12, 1997          1.238           16.73           13.51
May 19, 1997          1.247           17.82           14.29
May 26, 1997          1.255           18.45           14.70
Jun 02, 1997          1.258           17.97           14.28
Jun 09, 1997          1.251           17.45           13.95
Jun 16, 1997          1.242           16.50           13.29
Jun 23, 1997          1.232           16.40           13.31
Jun 30, 1997          1.226           16.71           13.63
Jul 07, 1997          1.222           17.09           13.99
Jul 14, 1997          1.219           16.81           13.79
Jul 21, 1997          1.222           16.91           13.84
Jul 28, 1997          1.216           17.00           13.98
Aug 04, 1997          1.237           17.31           13.99
Aug 11, 1997          1.272           17.70           13.92
Aug 18, 1997          1.274           17.33           13.60
Aug 25, 1997          1.288           17.39           13.50
Sep 01, 1997          1.287           16.99           13.20
Sep 08, 1997          1.288           17.04           13.23
Sep 15, 1997          1.281           16.88           13.18
Sep 22, 1997          1.269           16.59           13.07
Sep 29, 1997          1.255           16.95           13.51
Oct 06, 1997          1.254           17.92           14.29
Oct 13, 1997          1.248           18.61           14.91
Oct 20, 1997          1.238           17.77           14.35
Oct 27, 1997          1.228           17.75           14.45
Nov 03, 1997          1.221           17.59           14.41
Nov 10, 1997          1.222           17.41           14.25
Nov 17, 1997          1.213           17.37           14.32
Nov 24, 1997          1.207           17.19           14.24
Dec 01, 1997          1.197           16.87           14.09
Dec 08, 1997          1.187           16.17           13.62
Dec 15, 1997          1.176           15.62           13.28
Dec 22, 1997          1.167           15.42           13.21
Dec 29, 1997          1.158           15.41           13.31
Jan 05, 1998          1.148           14.86           12.94
Jan 12, 1998          1.140           13.80           12.11
Jan 19, 1998          1.129           13.26           11.74
Jan 26, 1998          1.112           12.95           11.65
Feb 02, 1998          1.108           13.26           11.97
Feb 09, 1998          1.101           13.05           11.85
Feb 16, 1998          1.085           12.77           11.77
Feb 23, 1998          1.090           12.38           11.36
Mar 02, 1998          1.075           11.66           10.85
Mar 09, 1998          1.065           11.59           10.88
Mar 16, 1998          1.055           10.69           10.13
Mar 23, 1998          1.047           10.38            9.91
Mar 30, 1998          1.077           12.40           11.51
Apr 06, 1998          1.074           12.48           11.62
Apr 13, 1998          1.072           11.91           11.11
Apr 20, 1998          1.075           11.92           11.09
Apr 27, 1998          1.086           11.99           11.04
May 04, 1998          1.095           12.28           11.21
May 11, 1998          1.109           12.80           11.54
May 18, 1998          1.109           12.62           11.38
May 25, 1998          1.108           12.20           11.01
Jun 01, 1998          1.104           12.38           11.21
Jun 08, 1998          1.113           12.06           10.84
Jun 15, 1998          1.104           11.01            9.97
Jun 22, 1998          1.096            9.62            8.78
Jun 29, 1998          1.096           10.74            9.80
Jul 06, 1998          1.097           10.72            9.77
Jul 13, 1998          1.092           10.68            9.78
Jul 20, 1998          1.097           11.11           10.13
Jul 27, 1998          1.088           11.03           10.14
Aug 03, 1998          1.077           11.53           10.71
Aug 10, 1998          1.072           11.34           10.58
Aug 17, 1998          1.065           10.80           10.14
Aug 24, 1998          1.058           10.98           10.38
Aug 31, 1998          1.053           11.17           10.61
Sep 07, 1998          1.046           11.14           10.65
Sep 14, 1998          1.042           11.50           11.04
Sep 21, 1998          1.053           11.79           11.20
Sep 28, 1998          1.053           13.07           12.41
Oct 05, 1998          1.059           13.50           12.75
Oct 12, 1998          1.063           12.64           11.89
Oct 19, 1998          1.058           11.69           11.05
Oct 26, 1998          1.055           11.07           10.49
Nov 02, 1998          1.050           11.77           11.21
Nov 09, 1998          1.048           11.44           10.92
Nov 16, 1998          1.037           10.84           10.45
Nov 23, 1998          1.030            9.99            9.70
Nov 30, 1998          1.015            9.72            9.58
Dec 07, 1998          0.996            8.87            8.91
Dec 14, 1998          0.987            8.51            8.62
Dec 21, 1998          0.986            8.95            9.08
Dec 28, 1998          0.979            8.73            8.92
Jan 04, 1999          0.977            9.10            9.31
Jan 11, 1999          0.982           10.00           10.18
Jan 18, 1999          0.985           10.14           10.29
Jan 25, 1999          0.977            9.63            9.86
Feb 01, 1999          0.971            9.89           10.19
Feb 08, 1999          0.968            9.60            9.92
Feb 15, 1999          0.960            8.90            9.27
Feb 22, 1999          0.949            8.99            9.47
Mar 01, 1999          0.955            9.62           10.07
Mar 08, 1999          0.963           10.03           10.42
Mar 15, 1999          1.017           11.12           10.93
Mar 22, 1999          1.056           12.10           11.46
Mar 29, 1999          1.121           12.90           11.51
Apr 05, 1999          1.158           14.14           12.21
Apr 12, 1999          1.179           13.77           11.68
Apr 19, 1999          1.175           14.24           12.12
Apr 26, 1999          1.171           15.39           13.14
May 03, 1999          1.176           15.83           13.46
May 10, 1999          1.180           16.17           13.70
May 17, 1999          1.180           15.29           12.96
May 24, 1999          1.166           14.52           12.45
May 31, 1999          1.151           14.63           12.71
Jun 07, 1999          1.152           14.07           12.21
Jun 14, 1999          1.148           15.21           13.25
Jun 21, 1999          1.163           15.55           13.37
Jun 28, 1999          1.153           15.47           13.42
Jul 05, 1999          1.165           16.16           13.87
Jul 12, 1999          1.182           16.97           14.36
Jul 19, 1999          1.208           17.56           14.54
Jul 26, 1999          1.232           17.78           14.43
Aug 02, 1999          1.234           18.23           14.77
Aug 09, 1999          1.246           18.32           14.70
Aug 16, 1999          1.275           19.15           15.02
Aug 23, 1999          1.273           19.58           15.38
Aug 30, 1999          1.273           19.24           15.11
Sep 06, 1999          1.282           19.64           15.32
Sep 13, 1999          1.290           20.82           16.14
Sep 20, 1999          1.307           21.84           16.71
Sep 27, 1999          1.302           21.97           16.87
Oct 04, 1999          1.296           22.29           17.20
Oct 11, 1999          1.290           21.10           16.36
Oct 18, 1999          1.277           20.39           15.97
Oct 25, 1999          1.277           20.64           16.16
Nov 01, 1999          1.271           20.62           16.22
Nov 08, 1999          1.274           20.73           16.27
Nov 15, 1999          1.292           22.39           17.33
Nov 22, 1999          1.309           23.24           17.75
Nov 29, 1999          1.315           24.24           18.43
Dec 06, 1999          1.313           23.43           17.84
Dec 13, 1999          1.315           24.05           18.29
Dec 20, 1999          1.310           23.60           18.02
Dec 27, 1999          1.314           23.65           18.00
Jan 03, 2000          1.312           23.86           18.19
Jan 10, 2000          1.304           22.68           17.39
Jan 17, 2000          1.318           23.18           17.59
Jan 24, 2000          1.354           25.56           18.88
Jan 31, 2000          1.355           25.34           18.70
Feb 07, 2000          1.364           25.53           18.72
Feb 14, 2000          1.394           26.10           18.72
Feb 21, 2000          1.443           26.62           18.45
Feb 28, 2000          1.458           26.60           18.24
Mar 06, 2000          1.539           27.55           17.90
Mar 13, 2000          1.566           29.11           18.59
Mar 20, 2000          1.569           27.89           17.78
Mar 27, 2000          1.549           25.08           16.19
Apr 03, 2000          1.543           24.29           15.74
Apr 10, 2000          1.516           23.26           15.34
Apr 17, 2000          1.486           22.05           14.84
Apr 24, 2000          1.478           23.00           15.56
May 01, 2000          1.461           23.32           15.96
May 08, 2000          1.495           24.40           16.32
May 15, 2000          1.531           25.77           16.83
May 22, 2000          1.566           26.96           17.22
May 29, 2000          1.579           26.93           17.06
Jun 05, 2000          1.599           27.14           16.97
Jun 12, 2000          1.664           27.02           16.24
Jun 19, 2000          1.711           28.56           16.69
Jun 26, 2000          1.691           28.37           16.78
Jul 03, 2000          1.661           28.78           17.33
Jul 10, 2000          1.630           27.58           16.92
Jul 17, 2000          1.586           27.03           17.04
Jul 24, 2000          1.562           26.32           16.85
Jul 31, 2000          1.514           24.74           16.34
Aug 07, 2000          1.504           24.78           16.48
Aug 14, 2000          1.489           26.68           17.92
Aug 21, 2000          1.508           27.88           18.49
Aug 28, 2000          1.521           28.36           18.65
Sep 04, 2000          1.568           29.81           19.01
Sep 11, 2000          1.598           31.50           19.71
Sep 18, 2000          1.599           30.08           18.81
Sep 25, 2000          1.586           30.94           19.51
Oct 02, 2000          1.563           27.93           17.87
Oct 09, 2000          1.541           27.49           17.84
Oct 16, 2000          1.578           30.13           19.09
Oct 23, 2000          1.588           29.03           18.28
Oct 30, 2000          1.584           29.73           18.77
Nov 06, 2000          1.565           28.49           18.20
Nov 13, 2000          1.562           29.09           18.62
Nov 20, 2000          1.550           30.26           19.52
Nov 27, 2000          1.549           30.39           19.62
Dec 04, 2000          1.526           29.20           19.13
Dec 11, 2000          1.490           24.70           16.58
Dec 18, 2000          1.462           22.84           15.62
Dec 25, 2000          1.453           21.07           14.50
Jan 01, 2001          1.446           20.38           14.09
Jan 08, 2001          1.465           21.77           14.86
Jan 15, 2001          1.513           22.91           15.14
Jan 22, 2001          1.511           23.59           15.61
Jan 29, 2001          1.500           24.37           16.25
Feb 05, 2001          1.483           23.74           16.01
Feb 12, 2001          1.515           25.67           16.94
Feb 19, 2001          1.489           24.18           16.24
Feb 26, 2001          1.471           23.36           15.88
Mar 05, 2001          1.457           22.50           15.44
Mar 12, 2001          1.453           23.42           16.12
Mar 19, 2001          1.444           22.01           15.24
Mar 26, 2001          1.445           21.17           14.65
Apr 02, 2001          1.482           21.78           14.70
Apr 09, 2001          1.540           21.82           14.17
Apr 16, 2001          1.610           22.86           14.20
Apr 23, 2001          1.658           23.23           14.01
Apr 30, 2001          1.665           22.89           13.75
May 07, 2001          1.739           23.97           13.78
May 14, 2001          1.748           23.96           13.71
May 21, 2001          1.724           24.46           14.19
May 28, 2001          1.739           24.96           14.35
Jun 04, 2001          1.715           24.67           14.38
Jun 11, 2001          1.688           24.28           14.38
Jun 18, 2001          1.644           24.50           14.90
Jun 25, 2001          1.583           23.38           14.77
Jul 02, 2001          1.520           22.91           15.07
Jul 09, 2001          1.484           22.58           15.22
Jul 16, 2001          1.459           22.64           15.52
Jul 23, 2001          1.440           21.38           14.85
Jul 30, 2001          1.428           22.28           15.60
Aug 06, 2001          1.419           22.48           15.84
Aug 13, 2001          1.434           23.19           16.17
Aug 20, 2001          1.467           23.32           15.90
Aug 27, 2001          1.523           23.08           15.15
Sep 03, 2001          1.579           23.57           14.93
Sep 10, 2001          1.562           23.89           15.29
Sep 17, 2001          1.564           23.89           15.27
Sep 24, 2001          1.522           23.70           15.57
Oct 01, 2001          1.455           19.61           13.48
Oct 08, 2001          1.393           19.13           13.73
Oct 15, 2001          1.351           18.96           14.03
Oct 22, 2001          1.307           18.02           13.79
Oct 29, 2001          1.277           17.66           13.83
Nov 05, 2001          1.249           17.03           13.63
Nov 12, 2001          1.224           16.36           13.37
Nov 19, 2001          1.208           15.62           12.93
Nov 26, 2001          1.168           14.87           12.73
Dec 03, 2001          1.149           15.76           13.72
Dec 10, 2001          1.136           15.96           14.05
Dec 17, 2001          1.101           15.16           13.77
Dec 24, 2001          1.113           15.59           14.01
Dec 31, 2001          1.137           16.75           14.73
Jan 07, 2002          1.152           17.06           14.81
Jan 14, 2002          1.152           17.60           15.28
Jan 21, 2002          1.146           15.71           13.71
Jan 28, 2002          1.142           15.67           13.72
Feb 04, 2002          1.157           16.53           14.29
Feb 11, 2002          1.148           16.97           14.78
Feb 18, 2002          1.157           18.00           15.56
Feb 25, 2002          1.157           17.54           15.16
Mar 04, 2002          1.185           18.62           15.71
Mar 11, 2002          1.262           20.02           15.86
Mar 18, 2002          1.328           21.62           16.28
Mar 25, 2002          1.382           22.53           16.30
Apr 01, 2002          1.412           23.12           16.37
Apr 08, 2002          1.454           24.00           16.51
Apr 15, 2002          1.446           22.86           15.81
Apr 22, 2002          1.446           22.10           15.28
Apr 29, 2002          1.435           23.34           16.26
May 06, 2002          1.437           24.16           16.81
May 13, 2002          1.431           23.91           16.71
May 20, 2002          1.439           24.69           17.16
May 27, 2002          1.429           24.98           17.48
Jun 03, 2002          1.433           22.01           15.36
Jun 10, 2002          1.417           21.66           15.29
Jun 17, 2002          1.419           21.33           15.03
Jun 24, 2002          1.425           22.92           16.08
Jul 01, 2002          1.433           23.66           16.51
Jul 08, 2002          1.423           23.73           16.68
Jul 15, 2002          1.435           23.94           16.68
Jul 22, 2002          1.451           24.90           17.16
Jul 29, 2002          1.447           24.30           16.79
Aug 05, 2002          1.437           24.28           16.90
Aug 12, 2002          1.435           23.95           16.69
Aug 19, 2002          1.434           24.95           17.40
Aug 26, 2002          1.444           25.87           17.92
Sep 02, 2002          1.436           25.74           17.92
Sep 09, 2002          1.437           25.54           17.77
Sep 16, 2002          1.442           26.29           18.23
Sep 23, 2002          1.436           26.39           18.38
Sep 30, 2002          1.455           27.24           18.72
Oct 07, 2002          1.480           27.08           18.30
Oct 14, 2002          1.481           26.35           17.79
Oct 21, 2002          1.499           26.24           17.51
Oct 28, 2002          1.485           25.11           16.91
Nov 04, 2002          1.489           23.61           15.86
Nov 11, 2002          1.480           22.56           15.24
Nov 18, 2002          1.451           21.46           14.79
Nov 25, 2002          1.423           21.92           15.40
Dec 02, 2002          1.408           22.66           16.09
Dec 09, 2002          1.404           23.48           16.72
Dec 16, 2002          1.407           24.04           17.09
Dec 23, 2002          1.443           26.34           18.25
Dec 30, 2002          1.484           28.23           19.02
Jan 06, 2003          1.487           28.52           19.18
Jan 13, 2003          1.496           28.44           19.01
Jan 20, 2003          1.502           29.21           19.45
Jan 27, 2003          1.515           29.71           19.61
Feb 03, 2003          1.569           29.31           18.68
Feb 10, 2003          1.649           29.46           17.87
Feb 17, 2003          1.701           30.65           18.02
Feb 24, 2003          1.699           30.79           18.12
Mar 03, 2003          1.726           31.35           18.16
Mar 10, 2003          1.752           31.14           17.77
Mar 17, 2003          1.768           30.87           17.46
Mar 24, 2003          1.732           26.51           15.31
Mar 31, 2003          1.692           23.45           13.86
Apr 07, 2003          1.673           24.38           14.57
Apr 14, 2003          1.639           22.69           13.84
Apr 21, 2003          1.618           22.70           14.03
Apr 28, 2003          1.600           23.11           14.44
May 05, 2003          1.556           21.53           13.84
May 12, 2003          1.534           21.83           14.23
May 19, 2003          1.539           23.53           15.29
May 26, 2003          1.528           24.95           16.33
Jun 02, 2003          1.514           24.48           16.17
Jun 09, 2003          1.530           25.50           16.67
Jun 16, 2003          1.558           26.13           16.77
Jun 23, 2003          1.537           25.07           16.31
Jun 30, 2003          1.528           24.95           16.33
Jul 07, 2003          1.530           26.28           17.18
Jul 14, 2003          1.563           26.14           16.72
Jul 21, 2003          1.566           26.90           17.18
Jul 28, 2003          1.558           26.72           17.15
Aug 04, 2003          1.576           26.48           16.80
Aug 11, 2003          1.611           28.20           17.50
Aug 18, 2003          1.668           27.91           16.73
Aug 25, 2003          1.787           27.30           15.28
Sep 01, 2003          1.786           27.84           15.59
Sep 08, 2003          1.758           26.49           15.07
Sep 15, 2003          1.739           25.09           14.43
Sep 22, 2003          1.686           24.09           14.29
Sep 29, 2003          1.635           23.86           14.59
Oct 06, 2003          1.617           25.39           15.70
Oct 13, 2003          1.611           26.69           16.57
Oct 20, 2003          1.612           28.34           17.58
Oct 27, 2003          1.584           26.69           16.85
Nov 03, 2003          1.577           26.23           16.63
Nov 10, 2003          1.547           25.71           16.62
Nov 17, 2003          1.540           27.03           17.55
Nov 24, 2003          1.554           27.94           17.98
Dec 01, 2003          1.533           26.76           17.46
Dec 08, 2003          1.519           26.62           17.52
Dec 15, 2003          1.509           27.46           18.20
Dec 22, 2003          1.528           26.84           17.57
Dec 29, 2003          1.521           27.77           18.26
Jan 05, 2004          1.552           27.63           17.80
Jan 12, 2004          1.603           28.57           17.82
Jan 19, 2004          1.637           29.49           18.01
Jan 26, 2004          1.664           29.28           17.60
Feb 02, 2004          1.660           28.49           17.16
Feb 09, 2004          1.681           27.23           16.20
Feb 16, 2004          1.690           27.10           16.04
Feb 23, 2004          1.730           28.51           16.48
Mar 01, 2004          1.758           29.02           16.51
Mar 08, 2004          1.780           30.42           17.09
Mar 15, 2004          1.767           30.74           17.40
Mar 22, 2004          1.785           31.08           17.41
Mar 29, 2004          1.800           31.09           17.27
Apr 05, 2004          1.822           29.82           16.37
Apr 12, 2004          1.827           29.95           16.39
Apr 19, 2004          1.853           31.05           16.76
Apr 26, 2004          1.853           31.11           16.79
May 03, 2004          1.884           31.71           16.83
May 10, 2004          1.979           33.40           16.88
May 17, 2004          2.055           34.61           16.84
May 24, 2004          2.104           35.56           16.90
May 31, 2004          2.092           34.98           16.72
Jun 07, 2004          2.075           34.83           16.79
Jun 14, 2004          2.029           32.78           16.16
Jun 21, 2004          1.981           32.44           16.38
Jun 28, 2004          1.965           32.43           16.50
Jul 05, 2004          1.939           31.15           16.06
Jul 12, 2004          1.959           33.57           17.14
Jul 19, 2004          1.971           34.30           17.40
Jul 26, 2004          1.948           35.14           18.04
Aug 02, 2004          1.930           36.08           18.69
Aug 09, 2004          1.920           37.51           19.54
Aug 16, 2004          1.917           38.16           19.91
Aug 23, 2004          1.926           39.84           20.69
Aug 30, 2004          1.909           38.58           20.21
Sep 06, 2004          1.893           36.31           19.18
Sep 13, 2004          1.889           36.68           19.42
Sep 20, 2004          1.908           37.01           19.40
Sep 27, 2004          1.959           39.55           20.19
Oct 04, 2004          1.980           41.20           20.81
Oct 11, 2004          2.035           42.02           20.65
Oct 18, 2004          2.077           44.22           21.29
Oct 25, 2004          2.074           44.44           21.43
Nov 01, 2004          2.076           46.00           22.16
Nov 08, 2004          2.045           41.70           20.39
Nov 15, 2004          2.014           39.30           19.51
Nov 22, 2004          1.992           36.74           18.44
Nov 29, 2004          1.989           38.81           19.51
Dec 06, 2004          1.956           35.80           18.30
Dec 13, 2004          1.893           30.30           16.01
Dec 20, 2004          1.861           31.45           16.90
Dec 27, 2004          1.838           34.20           18.61
Jan 03, 2005          1.824           32.07           17.58
Jan 10, 2005          1.837           33.79           18.39
Jan 17, 2005          1.863           36.96           19.84
Jan 24, 2005          1.896           38.16           20.13
Jan 31, 2005          1.953           39.14           20.04
Feb 07, 2005          1.952           37.92           19.43
Feb 14, 2005          1.941           36.58           18.85
Feb 21, 2005          1.948           38.08           19.55
Feb 28, 2005          1.969           40.57           20.60
Mar 07, 2005          2.040           43.38           21.26
Mar 14, 2005          2.098           45.46           21.67
Mar 21, 2005          2.149           46.42           21.60
Mar 28, 2005          2.194           46.97           21.41
Apr 04, 2005          2.258           45.32           20.07
Apr 11, 2005          2.321           47.69           20.55
Apr 18, 2005          2.280           44.23           19.40
Apr 25, 2005          2.279           43.96           19.29
May 02, 2005          2.277           45.90           20.16
May 09, 2005          2.231           43.36           19.44
May 16, 2005          2.206           43.62           19.77
May 23, 2005          2.169           41.17           18.98
May 30, 2005          2.141           41.76           19.50
Jun 06, 2005          2.159           44.79           20.75
Jun 13, 2005          2.173           46.89           21.58
Jun 20, 2005          2.204           47.77           21.67
Jun 27, 2005          2.257           51.22           22.69
Jul 04, 2005          2.268           50.89           22.44
Jul 11, 2005          2.369           52.01           21.95
Jul 18, 2005          2.360           52.57           22.28
Jul 25, 2005          2.333           50.59           21.68
Aug 01, 2005          2.335           51.73           22.15
Aug 08, 2005          2.410           53.65           22.26
Aug 15, 2005          2.592           56.28           21.71
Aug 22, 2005          2.654           57.56           21.69
Aug 29, 2005          2.653           57.66           21.73
Sep 05, 2005          3.117           59.84           19.20
Sep 12, 2005          3.002           58.09           19.35
Sep 19, 2005          2.835           55.86           19.70
Sep 26, 2005          2.851           58.11           20.38
Oct 03, 2005          2.975           57.79           19.43
Oct 10, 2005          2.896           55.47           19.15
Oct 17, 2005          2.775           54.14           19.51
Oct 24, 2005          2.652           53.64           20.23
Oct 31, 2005          2.528           51.84           20.51
Nov 07, 2005          2.424           51.74           21.34
Nov 14, 2005          2.342           50.31           21.48
Nov 21, 2005          2.247           47.86           21.30
Nov 28, 2005          2.200           48.17           21.90
Dec 05, 2005          2.191           48.08           21.94
Dec 12, 2005          2.228           50.11           22.49
Dec 19, 2005          2.255           51.58           22.87
Dec 26, 2005          2.241           49.37           22.03
Jan 02, 2006          2.281           49.56           21.73
Jan 09, 2006          2.371           53.28           22.47
Jan 16, 2006          2.366           55.05           23.27
Jan 23, 2006          2.382           56.45           23.70
Jan 30, 2006          2.402           57.70           24.02
Feb 06, 2006          2.388           57.57           24.11
Feb 13, 2006          2.331           54.70           23.47
Feb 20, 2006          2.286           51.35           22.46
Feb 27, 2006          2.298           51.43           22.38
Mar 06, 2006          2.373           52.96           22.32
Mar 13, 2006          2.408           53.61           22.26
Mar 20, 2006          2.548           53.80           21.11
Mar 27, 2006          2.542           54.18           21.31
Apr 03, 2006          2.631           56.68           21.54
Apr 10, 2006          2.727           58.82           21.57
Apr 17, 2006          2.828           60.99           21.57
Apr 24, 2006          2.960           64.00           21.62
May 01, 2006          2.966           64.89           21.88
May 08, 2006          2.955           65.54           22.18
May 15, 2006          2.992           64.68           21.62
May 22, 2006          2.938           63.38           21.57
May 29, 2006          2.913           62.83           21.57
Jun 05, 2006          2.937           63.84           21.74
Jun 12, 2006          2.951           62.97           21.34
Jun 19, 2006          2.917           61.46           21.07
Jun 26, 2006          2.914           60.89           20.90
Jul 03, 2006          2.979           63.44           21.30
Jul 10, 2006          3.017           66.54           22.06
Jul 17, 2006          3.033           67.24           22.17
Jul 24, 2006          3.048           67.98           22.30
Jul 31, 2006          3.050           66.57           21.83
Aug 07, 2006          3.083           68.13           22.10
Aug 14, 2006          3.047           69.52           22.82
Aug 21, 2006          2.971           66.15           22.27
Aug 28, 2006          2.893           64.86           22.42
Sep 04, 2006          2.777           63.18           22.75
Sep 11, 2006          2.670           60.49           22.66
Sep 18, 2006          2.549           57.28           22.47
Sep 25, 2006          2.429           54.46           22.42
Oct 02, 2006          2.360           53.26           22.57
Oct 09, 2006          2.310           52.75           22.84
Oct 16, 2006          2.274           51.78           22.77
Oct 23, 2006          2.255           51.87           23.00
Oct 30, 2006          2.264           51.61           22.80
Nov 06, 2006          2.246           50.65           22.55
Nov 13, 2006          2.278           51.71           22.70
Nov 20, 2006          2.285           51.50           22.54
Nov 27, 2006          2.292           50.42           22.00
Dec 04, 2006          2.342           53.54           22.86
Dec 11, 2006          2.340           55.55           23.74
Dec 18, 2006          2.366           54.79           23.16
Dec 25, 2006          2.387           55.09           23.08
Jan 01, 2007          2.382           54.00           22.67
Jan 08, 2007          2.354           51.57           21.91
Jan 15, 2007          2.280           47.72           20.93
Jan 22, 2007          2.216           45.29           20.44
Jan 29, 2007          2.213           46.94           21.21
Feb 05, 2007          2.237           49.35           22.06
Feb 12, 2007          2.287           52.15           22.80
Feb 19, 2007          2.341           51.62           22.05
Feb 26, 2007          2.428           52.31           21.54
Mar 05, 2007          2.551           55.18           21.63
Mar 12, 2007          2.605           55.53           21.32
Mar 19, 2007          2.623           54.39           20.74
Mar 26, 2007          2.655           54.02           20.35
Apr 02, 2007          2.753           58.08           21.10
Apr 09, 2007          2.848           60.53           21.25
Apr 16, 2007          2.922           59.21           20.26
Apr 23, 2007          2.917           58.66           20.11
Apr 30, 2007          3.017           59.19           19.62
May 07, 2007          3.097           59.76           19.30
May 14, 2007          3.143           58.06           18.47
May 21, 2007          3.258           60.29           18.51
May 28, 2007          3.250           63.11           19.42
Jun 04, 2007          3.200           62.10           19.41
Jun 11, 2007          3.122           64.10           20.53
Jun 18, 2007          3.057           63.45           20.76
Jun 25, 2007          3.029           65.69           21.69
Jul 02, 2007          3.005           65.51           21.80
Jul 09, 2007          3.026           67.65           22.36
Jul 16, 2007          3.092           70.63           22.84
Jul 23, 2007          3.005           71.71           23.86
Jul 30, 2007          2.926           71.36           24.39
Aug 06, 2007          2.888           72.19           25.00
Aug 13, 2007          2.821           68.09           24.14
Aug 20, 2007          2.832           66.29           23.41
Aug 27, 2007          2.796           65.16           23.30
Sep 03, 2007          2.840           66.47           23.40
Sep 10, 2007          2.862           68.93           24.08
Sep 17, 2007          2.835           70.24           24.78
Sep 24, 2007          2.860           72.62           25.39
Oct 01, 2007          2.838           73.50           25.90
Oct 08, 2007          2.821           73.65           26.11
Oct 15, 2007          2.813           73.39           26.09
Oct 22, 2007          2.873           77.84           27.09
Oct 29, 2007          2.921           79.47           27.21
Nov 05, 2007          3.060           83.69           27.35
Nov 12, 2007          3.158           86.88           27.51
Nov 19, 2007          3.148           85.21           27.07
Nov 26, 2007          3.147           87.93           27.94
Dec 03, 2007          3.113           87.22           28.02
Dec 10, 2007          3.053           81.95           26.84
Dec 17, 2007          3.050           82.44           27.03
Dec 24, 2007          3.032           83.41           27.51
Dec 31, 2007          3.104           85.52           27.55
Jan 07, 2008          3.159           88.41           27.99
Jan 14, 2008          3.119           89.60           28.73
Jan 21, 2008          3.070           85.36           27.80
Jan 28, 2008          3.030           82.66           27.28
Feb 04, 2008          3.030           85.36           28.17
Feb 11, 2008          3.011           83.21           27.64
Feb 18, 2008          3.092           85.50           27.65
Feb 25, 2008          3.180           89.61           28.18
Mar 03, 2008          3.212           91.74           28.56
Mar 10, 2008          3.273           95.15           29.07
Mar 17, 2008          3.332           99.76           29.94
Mar 24, 2008          3.310           99.67           30.11
Mar 31, 2008          3.339           96.65           28.95
Apr 07, 2008          3.381           95.56           28.26
Apr 14, 2008          3.438           101.22          29.44
Apr 21, 2008          3.557           105.27          29.60
Apr 28, 2008          3.653           109.25          29.91
May 05, 2008          3.663           108.98          29.75
May 12, 2008          3.771           112.96          29.95
May 19, 2008          3.840           116.32          30.29
May 26, 2008          3.986           120.16          30.15
Jun 02, 2008          4.026           121.92          30.28
Jun 09, 2008          4.090           117.82          28.81
Jun 16, 2008          4.134           125.28          30.30
Jun 23, 2008          4.131           125.93          30.48
Jun 30, 2008          4.146           128.02          30.88
Jul 07, 2008          4.165           133.60          32.08
Jul 14, 2008          4.164           133.32          32.02
Jul 21, 2008          4.118           134.44          32.65
Jul 28, 2008          4.010           122.59          30.57

Repeat after me, kids: "It's the tree-huggers' fault"

Sadie and Pyper, only 9 and 7 years old, are protesting high gas prices that made their parents cut out cable TV. Welcome to the real world, girls. Welcome to the lower quality of life that's inevitable when people let themselves be ruled by environmentalists. Those are the people you should be blaming, girls, not oil companies! Oil companies would love nothing better than to supply us with more oil and gas, and at lower prices: when you do the math, lower prices mean higher sales, so they earn more profit while we consumers still benefit from cheap, plentiful carbon fuels.

Instead of blaming the oil companies, Sadie and Pyper need to learn who's really at fault. Their parents are paying more for gasoline because the federal and state and local governments for 32 years have prevented new gasoline refineries from being built, because EPA regulations have forced the number of refineries to drop from 254 in 1985 to a mere 142 in 2007, because the EPA requires an area to use one of 42 different gasoline blends depending on local "air quality," because the federal government would rather keep Colorado shale as useless wilderness most Americans would never bother visiting (instead of letting oil companies turn it into useful energy), because California and Florida elitists want to preserve "pristine" shorelines that they don't like to share, because both Democrats and Republicans always block efforts to drill in ANWR (a place as barren as the moon), and because of the insanity to "protect" plentiful polar bears the girls will likely never see in their lives (and probably wouldn't want to anyway, since their "cuteness" disappears suddenly once you see the violent predators munching a seal).

Polar bears are cute, aren't they? Let's take a look at one in action. (image borrowed from Supanet)



My best friend doesn't send me polar bear stuff as often as she used to, but she's sent a lot over the years, from coasters to stuffed animals. Those are cute. Real polar bears are not cute. Knut was a cute little cub until you saw him eat his natural diet of meat, at which point a rational person realizes, "This is a predator."

I suppose the girls could be considered "spoiled," when countless millions of other children around the world would be grateful for just a few bits of food. God knows I've personally seen many Filipino children who may never know a full stomach. However, on further reflection, I'm more sympathetic than some of the comments in reply to the article. The Vance family isn't necessarily among the many idiotic people who think they should live like kings on one 40-hour per week income; there's nothing in the article to indicate either way. Also, the girls are misguided in their protests, but they're young and have yet to learn economics. Economics is the science of human choices and its consequences, or more specifically, the study of how we deal with scarcity. "You can't have everything."

If the girls like cable TV so much, their family can cut back on going to restaurants (including fast food) and the movies. Each month, two fewer trips for fast food, or one fewer outing to the movies, would probably cover their cable bill. Cutting back on cell phone plans, and settling for "freebie" phones when renewing contracts, is also a way to reduce expenses that many people overlook. Alternatively, the family can try to increase its income. One of the parents could get a part-time job, just two Saturdays a month to pay for cable. The girls could also try a paper route or babysitting. I don't expect them at their age to understand more advanced economic concepts, but they're not too young to understand that in the real world, you should work honestly and trade voluntarily for what you want.

But we shouldn't blame the family, because they shouldn't have to cut back or try to earn more money to compensate for what government hath wrought. If it weren't for government, oil and gasoline would be cheaper. The family still couldn't have everything, but they wouldn't have to cut this or that out of the family budget to afford to drive around. Putting aside any questions of whether the parents derive income from others without consent (i.e. "the redistribution of wealth" and "subsidies"), the parents have the income and possessions they have, and who has the right to tell them not to use it, or use less? That's what government is doing: it wants us to use less oil, so it's forcing changes in our behavior. I don't use "force" lightly, because in the end, it comes down to government doling out fines and prison time, enforced at the point of a gun.

The Orange County Register had an editorial last week with a great title: "You can't ride a polar bear to work." Contrary to Agent Smith's derision in the first "Matrix" movie, it's one of mankind's greatest strengths that we can adapt the environment to ourselves, whereas most other lifeforms adapt to their environment. We're not living in some state of nature, like buzzards or decomposer bacteria waiting for something to die, or lions waiting for an antelope to pass by, or squirrels that try to scavenge enough to survive the winter. We get out there and fight Mother Nature for what we have. My friend Billy Beck recently said something similar, I think, but for the life of me I can't find it right now. (The closest I can find are this and this but neither are it.)

Our fight for the last two centuries has involved a remarkable increase in how we use our surroundings, at a rate never seen before in human civilization. It's come at the price of altering our environment, and I for one see it as worthwhile. I, for one, am willing to make trades and use our available technology so that I do not have to live like an animal. And once humans don't have to live like animals, which means no less than "to struggle against nature," we don't have to worry about following a herd of prey, or living adjacent to water sources. We don't have to accept that it's "natural" for someone to die because we ran out of resources. We can actually worry about how to improve our already comfortable lives! If Drew Barrymore thinks it's "cool" to "poo in the woods," that's her choice. Same goes for that idiot Frenchman who wants to live alone on an island. If we all lived in such "natural conditions," we'd require far more land per person to feed ourselves. It's modern technology that allows us to plant and harvest more and more in the same land area. But I suspect he doesn't mind that, that he shares the same mindset as that bastard Jacques Cousteau, who envisioned an Earth with a controlled human population of only 100,000.

Many on the planet still struggle, but even they have supplanted "other species" like the more fortunate of us. And is that so wrong? What parent can rationally wake up without worrying about starting work at dawn, in dwellings at a comfortable temperature with non-dirt floors, with sanitary ways to excrete and bathe and cook, then worry that their children will never see dodo birds wandering up to them on the beach, or flocks of passenger pigeons? Besides the fact that Mother Nature killed far more species than man ever did, I see pigeons of all kinds every day. One extinct kind frankly doesn't make any difference to me. Huge flocks that darkened the sky, and entire trees filled? That only means that much more bird droppings.

Or as Billy said about the comparative worth of polar bears:

Take a good long look at your kids.

Tell me they're not worth more than a polar bear.

That's the fight that will now take place in all kinds of courts for years on end every time someone wants to deliver unto your dainty hands a single new gallon of fuel.

And elsewhere about the caribou-protectors,

I hope they freeze in the dark, listening to the cries of their children. The real sin in all this is how they take sensible people along with them on the ride.

Unfortunately it's Sadie and Pyper who are paying the price. It isn't oil companies' "gouging" that's preventing them from watching Hannah Montana. It's entirely the fault of government and the damn tree huggers, who are making oil and gas artificially more expensive. I can only wish that Sadie and Pyper's parents can pull them aside, show them pictures of polar bears at dinner, and say, "These cute things are why you can't watch Hannah Montana."

Then you have morons like this who actually say that $8 per gallon gasoline will be good for us. Why? Because it promotes behavior that he likes, never mind what you or I like. He talks about the "antiquated technology" that's driving automobile engines. Did he ever consider the "antiquated technology" called electricity that continues to power most of our modern comforts? And if higher prices are an economic "stimulus," why not hike all prices? Let's set tomatoes' price at $1 million per pound -- by his logic, that would spread prosperity throughout the economy as people have more money to spend! But in reality, it would wreck everything. The simple lesson is to let prices fluctuate on their own, similar to what Bastiat warned us in his Sophisms: "Has not M. Bugeaud uttered these words: 'Let bread be dear, and the farmer will be rich'? Now, bread can be dear only because it is scarce. Thus, M. Bugeaud was extolling scarcity." It follows, then, that it's a fallacy to think that because government makes something artificially more expensive, and an industry thereby becomes artificially more prosperous, that the prosperity will spread throughout. It simply won't happen: all prices will go up accordingly, and because of government's interference in setting prices, buyers and sellers will not be able to determine the correct prices for anything else.

Then the fool goes on about how oil producing nations have so much power over us, when in fact we should be worrying more about the federal government having power over us. It's the federal government who has greater control over our supply of oil, not Saudi Arabia or Hugo Chavez. And for all his talk about how wonderful public transportation is, how we'll eliminate urban sprawl, it comes down to him and other collectivists telling the rest of us how to live our lives. They like paying more for gasoline, they think it's a good thing, they value unused natural resources more than modern comforts, and therefore we all must follow them on the road to hell.

Sadie and Pyper, welcome to the 1970s.

How to cut taxes yet cost consumers in the same bill

My hand seems much better today, after my stupidity yesterday, good enough to type mostly normally. My friend and I never did get to Chelsea Piers last night, partially because we were in suits and dress shoes and not more suitable clothes, and he didn't want to aggravate my hand -- or was he afraid I'd lose my grip and send the club flying? We did go to Madison Square Park where, he's right, the Shake Shack serves a very, very good hamburger. At $7 for just a double cheeseburger (no fries or drink), it's more expensive than the fast food joints across the street, but there was no comparison in taste. To quote one of my favorite actors: "Mmhmm! This is a tasty burger!" (Go here for that sound clip and many others.)

That being said, here's something I'm surprised wasn't blogged about more yesterday. To mildly paraphrase Thomas Jefferson, were Congress to direct a marathon, runners would run backwards on moving sidewalks. Only in Washington, D.C, could a bill effectively nullify itself.

Senate Passes $60 Billion Tax Bill
Senate Passes $60 Billion Tax Bill Extending Tax Cuts, Raises Taxes on Oil Companies

WASHINGTON - The Senate passed a $60 billion bill early Friday that would extend expiring tax cuts and prevent roughly 14 million families from paying higher taxes through the alternative minimum tax.

It drew a presidential veto threat for raising taxes on oil companies.

Then again, President Bush threatened to veto this year's transportation bill, which I had criticized since March, if it exceeded the original plan of $284 billion. He then signed the final $286 billion package, because, well, some members of Congress wanted to spend as much as $400 billion...so $286 was more than originally wanted but a good "compromise" nonetheless.

Much of the bill, passed 64-33 after midnight, preserves tax cuts approved in previous years that are set to expire unless lawmakers keep them alive. "I call this bill the 'Tax Increase Prevention Act,'" said Sen. Rick Santorum, R-Pa.

Senate GOP leaders pledged that when the bill returns to the Senate for final approval, it will also extend the life of reduced tax rates for capital gains and dividends, scheduled to end when the calendar flips to 2009.

"Millions of Americans have benefited from these important tax policies either directly through lower taxes or indirectly through new and better jobs and greater economic security for families," said Treasury Secretary John Snow.

A good start. Now if only they'd do big tax cuts, and just as importantly, cut spending to match. Let's face it: $60 billion over five years is a drop in the bucket compared to federal spending just for this year alone. The federal government will spend $2.47 trillion just for 2005, and $14.3 trillion during fiscal years 2006 through 2010.

Democrats roundly oppose extending tax cuts for investment income. Senate leaders dropped an extension from their bill because a key moderate Republican balked at its inclusion.

Naturally! Democrats don't like it when any "rich" can actually keep money to invest in the economy, never mind that rich people's investment and consumption spending does trickle down to create jobs for everyone else. Democrats also dislike it when the middle class starts investing. After all, investing helps wean people from government's teat (especially regarding retirement), and worse, the mere act of owning a piece of a business transforms them into the mythical Democratic bogeyman of Evil Rich Capitalists. Exceptions, of course, are made for the likes of Ted Kennedy, John Kerry, John Edwards, Al Gore, et al.

The bill would stop a tax increase on about 14 million families in line to pay the alternative minimum tax next year. Originally a levy to prevent the wealthy from avoiding taxation, inflation causes the alternative minimum tax to reach into the pockets of more families every year. Lawmakers regularly enact walls to hold it back.

The AMT simply must go. Even if you believe in progressive levels of taxation, it's one of the stupidest ideas conceived, because there was no indexing for inflation.

Senate Republicans beat back Democratic attempts to use the bill to pinch oil and energy companies that have been reporting record profits while consumers pay high gasoline prices, efforts that reflected sensitivity on Capitol Hill to high gasoline prices and fears of skyrocketing home heating costs this winter.

The largest oil companies, nevertheless, would be hit with about $4.3 billion in taxes through a change in accounting methods. That provision drew a veto threat from the White House and upset some Western Republicans, who deemed it an unfair and political attack on the energy industry.

"Is it a windfall tax by another name?" said Sen. Larry Craig, R-Idaho.

So much for Republicans "beat[ing] back Democratic attempts to pinch oil and energy companies." When will both parties join Sen. Craig, and when will all politicians acknowledge the reality that businesses do not pay taxes, ever? Businesses are only tax collectors for the government: they necessarily pass along their taxes to the consumer.

While the most profusely bleeding heart "progressive" touts the idea of taxing businesses and redistributing the money to consumers, it will not happen because it does not account for incentive.

The Senate defeated a Democratic effort to impose a temporary windfall profits tax, 50 percent on the sale of oil over $40 a barrel, on profits not reinvested in increasing domestic oil and gas supplies. The money would have been returned to energy consumers through an income tax rebate. A 64-35 procedural vote defeated the effort.

"The major integrated oil companies have all of the gain. Who has all the pain?" asked Sen. Byron Dorgan, D-N.D., who then answered his own question: "All the American people who are trying to pay for the price of a tankful of gas or trying to figure out how they are going to heat their home in the winter."

The Senate also defeated an amendment to impose a windfall profits tax on oil companies and use the money to fund a low-income heating assistance program.

I initially debunked Dorgan's myth toward the end of this entry. His first error stems from the erroneous liberal misconception that companies hoard money. Increased profits for any company or any sector of the economy, no matter how great, never "take away" from or "deprive" the rest of the people, or the rest of the economy. Even if it's oil executives getting all the money, what will they do, sit on piles of it? No, they will by definition save and/or spend it. The money goes right back into the rest of the economy, so it's only a shift in spending patterns, with nothing lost.

Oil companies are simply in a cylical heyday, which will not last forever. In the late 1990s, it was technology companies. Once upon a time, it was horse breeders. In 17th century Holland, it was tulips. It's only a matter of which sector at the present time can best capitalize -- i.e. be the most competitive -- on consumer preferences.

In his economic ignorance, Dorgan doesn't understand the role of prices. Prices are critical (as I explained in "The power of markets") not just because they reflect a resource's scarcity and limit consumption, but because they encourage others to "get into the act" and thereby increase the supply. Prices cannot get so high, by definition, unless there are enough people willing and able to pay them. I think regular gasoline peaked at $3.43 down the road from me; today it was down to $2.49. If no one could afford it like some think, how could the station charge a dollar more only two months ago?

It's a nice-sounding progressive idea, certainly appealing to most people, that we can tax oil companies $5 per $50 per barrel oil, or $10 per $60 per barrel oil, then "rebate" the profits to people via income tax cuts. Oil companies could still make a profit, and people would effectively get part of the money back, right? As Gov. Schwarzenegger could say, "Wrong!" If oil is selling at $50 per barrel, oil companies would produce only the oil that's worth $45 to produce. This greatly restricts supply, because they won't bother to supply more expensive oil which certain consumers are willing to buy, and what happens when supply is reduced? The price goes up. Crude oil suppliers could also raise their prices to compensate for the taxes; do you think your grocery store would charge the same prices if it were hit with a 10% excise tax?

Either way, consumers will need that remitted money to cover the increased cost that federal controls produced. Ultimately this idea of "tax and rebate" is self-defeating: it does absolutely nothing, like a large part of federal spending, but establish additional Big Brother bureaucracy that brings consumers a step forward only to take them one (if not more) step backward. I still wonder how Dorgan proposes to rebate the money. How about someone like me, who spends very little on gas compared to my total income? My very situation demonstrates why an income-based rebate cannot work, and providing proof of purchase (like receipts) is logistically ludicrous.

Senators rejected other proposals that would have eliminated a tax incentive for major oil and gas companies that allows them a credit for exploration and development costs. An amendment to ban price-gouging during national energy emergencies declared by the president won the support of 57 senators but fell short of 60 votes needed to overcome a procedural hurdle.

Good and good. Removing a "tax incentive" is the same as increasing taxes, so once again, raising taxes on a business only means passing it onto the consumer. And have we still not learned from the 1970s that price controls lead to shortages?

The overall bill reduces taxes about $60 billion over five years, preserving many tax breaks scheduled to expire unless lawmakers keep them intact. Unlike a version scheduled for debate in the House on Friday, the bill would not extend reduced tax rates for capital gains and dividends. Congress lowered the maximum tax rate on that investment income to 15 percent in 2003, and many Republicans want to act this year to keep those rates in place in 2009 and 2010.

Investment in business allows them to expand and create new jobs, yet Democrats do their best to stymie any efforts to cut taxes on investment that encourage growth. It doesn't matter that the jobs go to lower income brackets; all the Democrats care about is that the tax cuts mean "rich people" can have more money.

The bill also would offer $7 billion in assistance to businesses and individuals hit by Hurricane Katrina and other storms, filling in details of President Bush's proposed Gulf Opportunity Zone.

Would this turn out to be anything like "Supplemental Terrorist Relief Act" loans that were supposed to be strictly for businesses affected by 9/11, some of which wound up at Dunkin' Donuts as far away as Vermont, Ohio and even Georgia? That's right: the New York Post has the full story, which I forgot to blog about last week. Now these were just loans: imagine how bad the grants might be. Would they compare to the infamous $2000 debit cards for Katrina victims, some of which were used to buy Louis Vitton and lap dances? What can I say: I predicted abuse from day one.

One Dunkin' Donuts franchise owner said he knew his business wasn't hurt by 9/11 but accepted the loan anyway. Another claimed his business, in Vermont, was hurt, giving an anecdote about people buying a coffee and two doughnuts before, but "probably" only a small coffee and one doughnut afterward. Then why didn't my aunt's wine store qualify for such a loan after 9/11, when people were buying less? Or was it actually that we were already in a recession, a very mild one which nonetheless influenced people to cut back on their spending?

Other owners claim they didn't know, that they simply borrowed the money for renovations. The banks claim they didn't know they were making STAR loans, just loans, but the article reveals their motive: "Banks had an incentive to hype the loans because the government reduced the traditional fee — saving some of the biggest lenders millions." So I guess nobody knew a damned thing, except the taxpayers who look at their paycheck stubs and wonder for what latest foolishness their earnings are appropriated.

Among many provisions extended in the bill are a deduction for state and local sales taxes, investment incentives for small businesses, a business research and development credit and a tuition deduction. Taxpayers would get new incentives to make charitable contributions at the same time that tax-writers put new curbs on charitable deductions deemed excessive.

As if this bill couldn't have anything more foolish: government wants to give people an incentive to donate to charity, but it will discourage the wealthy, i.e. those who have the most to give, from giving as much as they could. If a deduction is "excessive," how must government view the donation? Badly, as is the nature of big government: to tax you to hell and back, denying you the freedom to dispose of your earnings yourself, and spending on the money on what it says is best for you.