Monday, November 2, 2009

More Backward Thinking by Al Gore

I sent the email below to the editor of "The Costco Connection" regarding its November 2009 cover story by the still confused Al Gore, who never lets a good crisis--in this case, three crises--go to waste without recommending even more government intervention in out lives.

You can read Al Gore's article here:

----- Original Message -----
From: Patrick Barron
Sent: Monday, November 02, 2009 7:54 AM
Subject: Taking Issue with Al Gore

Re: "Separate Problems, One Solution", by Al Gore

Dear Sirs:
Regarding Al Gore's recent article in your November 2009 edition of "The Costco Connection", I take issue with his main premise--that his three crises have a common cause in our reliance on foreign oil. First of all, I do not believe that the global warming case is proven. If there is global warming--and I doubt it--the cause is beyond our power to control. Secondly, our reliance on foreign oil is caused by our domestic laws restricting American production. Professor George Reisman explains this phenomenon in his book, "Capitalism". Just think about the issue for a minute. Change the product from oil to autos. What would be the result of a cartel of foreign automakers conspired to charge Americans many times the price of a domestically manufactured car? Detroit would be a boom town, of course! The foreign automakers wouldn't sell any cars to Americans (their largest customer), permanently injuring their domestic manufacturers. But let us say that our government refused to allow U.S. automakers to expand production. The result would be a victory for the foreign auto cartel. Likewise, restrictions on American oil production gave the OPEC oil cartel undeserved power and wealth at our expense, both in terms of money and security. It has been a disastrous policy, aided and abetted by the likes of Al Gore. Thirdly, the current financial crisis has nothing to do with our reliance on foreign oil. It was caused by the federal government's fiscal and monetary policies. The Federal Reserve Bank inflated the money supply and drove down interest rates, which provided the necessary funds for bank credit expansion. Furthermore, its regulations, such as the Community Reinvestment Act, extorted banks to lend to those with poor credit. Finally, its finance banks--Fannie Mae, Freddie Mac, the FHA, etc.--created unprecedented moral hazard by lowering the standards of the loans they would purchase from the originating banks. Never has government, and its apologists like Al Gore, been so duplicitous in blaming others for the chaos that it has wreaked. The U.S. is a less wealthy and less secure nation as a result.

Patrick Barron

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