High gas prices are — for lack of better words — bad

Do we need a huge resource transfer to handle the 100 million young heading toward non-existent jobs in the Middle Eat? As Tom points out, probably not if it comes from oil: oil (and natural gas) money is a curse because it distorts the economies and political systems of the countries that it touches.

Of course, the non-integrated Gap needs economic development, but it needs to achieve this through wealth creation. Attempts to just give money — whether in the forms of “new Marshall Plans” or oil booms — don’t go anywhere. In one generation you badly damage the countries that have the oil, allowing it to bumble into a future that it can’t sustain on its own.

When you consider that in 1950 Saudi Arabia and South Korea were roufhly comofrtable, the status of one as nearly perpetual Gap (unstable, radical, misogynist, and all the rest) and the other as comfortable new Core, it’s clear how much damage oil can do to a country’s development.

We are seeing a good example of this warping going on in Russia, under its incompetent strongman Vladimir Putin. Catholicgauze points to AmericanShow.ru, a video put out by the Putin/Kremlin group “Nashi” that outlines how (among other things) the Great World War was a plot by Americans to destroy the European people. More info on this is available from Current, though the American Show is also available on youtube:

So how can we save Russia from itself? How can we prevent other Gap countries that have oil from harming themselves as Russia and Saudi Arabia have injured themselves?

Keep the price of oil low.

That is one reason why the reorganizational bankruptcy of VeraSun, one of the nation’s largest ethanol producers, is so disturbing. Ethanol is not some strategically neutral substitute to Gap hydrocarbons, like oil sands are. Rather, technologies like E85 and hybrids allow us to radically move past foreign hydrocarbons, and create alternative infrasturctures to those cursing our consumers and their societies with high oil prices.

For the sake of our people, our security, and their people, and their future, keep the price of oil low.

3 thoughts on “High gas prices are — for lack of better words — bad”

  1. As an ExxonMobil shareholder, I must protest. High oil prices are fantastic. Well, they should be. If only my darn stock would go up. It’s doomed. 4th QTR will bring XOM’s execution by firing squad.

    Just one to ponder: for a significant majority of the age of oil, oil prices have been extraordinarily low.

  2. To clarify — high gas prices — and low oil prices — are good! :[1] -)

    Just one to ponder: for a significant majority of the age of oil, oil prices have been extraordinarily low.

    True. Looks like about a century of cheap oil — the ’70s to ’70s — with a minor trough and then a return to high real dollars in 2000. [2]

    [1] http://www.tdaxp.com/archive/2005/04/01/a-modest-geogreen-gas-tax-proposal-5gal-gas.html
    [2] http://en.wikipedia.org/wiki/Price_of_petroleum

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