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Smith Faculty
Opinion Article |
July 2008 |
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By Dr.
John A. Haslem, Professor Emeritus
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WEB SITE |
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The 30 Seconds
Outlook
July 1, 2008
"Politicians have made absolutely
dreadful choices, many of which were
obvious even at the time." Dr.
Charles Lieberman, Advisors Capital
Management, June 30, 2008.
Who's to blame for the boom in crude
oil prices along with fears of inflation
and recession? Excluding the huge
increased demand for oil in rapidly
growing foreign economies, the answer
lies primarily with Congress. Congress
has sacrificed the public interest in
the face of an obvious emergency with
its devotion to environmental supporters
and its refusal to work with the White
House. What has not been done is to plan
and act. There is obvious need to
develop sources of natural gas and crude
oil, both inland and offshore. There is
obvious need to fund research and
development of economical applications
of alternative fuel sources, such as
coal liquification, hydrogen and
electric cars, wind farms and solar
panels. And, by the way, there is need
to provide for future water needs, such
as in California, by installing water
desalinization facilities. But, what
should be stopped is use of corn
ethanol, which increases the cost of
feeding our population. Nuclear power
plants should not be pursued. The time
to come online is much too long and the
dangers from terrorists and storage of
spent fuel are real. We have a vital
private sector working to develop and
apply economical alternative fuels. But,
Congress and the President need to
establish a public-private "Marshall
Plan for Energy" to set priorities,
plan, and fund research and development
on a long-term basis.
by John A. Haslem
John A.
Haslem, Professor Emeritus of Finance,
University of Maryland.
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