Team Obama just released an "emergency economic plan" to "relieve the burden on families struggling with high gas and grocery bills, or preparing for high heating bills." At least that's the intent. Here are details:
Forcing big oil companies to take a reasonable share of their record breaking windfall profits and use it to help struggling families with direct relief worth $500 for an individual and $1,000 for a married couple.... The rebates would be fully paid for with five years of a windfall profits tax on record oil company profits.... $25 billion in a State Growth Fund to prevent state and local cuts in health, education and housing assistance or counterproductive increases in property taxes, tolls or fees. The fund will also ensure sufficient funding for home heating and weatherization assistance as we move into the fall and winter months.... $25 billion in a Jobs and Growth Fund to replenish the highway trust fund; prevent cutbacks in road and bridge maintenance and fund new, fast-tracked projects to repair schools—all to save more than 1 million jobs in danger of being cut.
Quick thoughts:
1) I thought Dems believed higher energy prices were a good thing, since they forced consumers to change their behaviors and sent a market signal to business to pursue green technologies.
2) Windfall profit taxes are like a flashback to the worst and most ineffective economic policies of the 1970s. Why not windfall profit taxes on food companies, too? Or on home builders a few years back? This is populism masquerading as policy.
3) Bringing down oil prices through the promise of more supply would probably do way more than cutting people checks with borrowed money.
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the one of IA 5:00PM February 17, 2009
Jason of LA 1:43PM August 19, 2008
Tony of PA 9:44AM August 04, 2008