Change Gives Hope
You may recall this post where I assailed some of Obama’s proposed economic plans. To jog your memory, an excerpt from that August 4th message:
Friday’s proposal says Obama “is proposing to offset the cost of his emergency energy rebates over the next five years by enacting a windfall profits tax on big oil companies.”
“Obama simply asks that big oil companies contribute a reasonable share of the windfall profits they receive from high oil prices over the next five years to pay for emergency assistance for families right now,” the campaign says.
“Over the next five years” assumes a great deal. It fails to take into account the impact that this very tax will have on profits. It assumes continued strength in the oil sector that is far from guaranteed. It targets a specific industry due to some kind of dubious moral judgement as to what kind of profits are reasonable.
I’m doing my best to be optimistic about Obama. The news that he has decided to drop this exceedingly ill-conceived idea is very positive and THAT is the CHANGE WE NEED. I certainly didn’t expect this tremendous drop in oil prices to come so quickly, but I think it gives the idea’s proponents a needed lesson in the behavior of markets.