Stay strong and stay patient. We’re going to retake control of our government and our country in the next three years. The GOP will retake control of the House in 2010 and then take control of the Senate and the White House in 2012. There are many reasons why this will happen but the biggest reason is that liberals do not understand economics and free enterprise and don’t know how to implement policies that generate strong economic growth and low unemployment. Despite the recent cheerleading and positive spinning of the economic news by the liberally-biased MSM, the US economy will still be very weak in November, 2010 and will still be in bad condition in November, 2012. Growth will start to slow down early next year and unemployment will remain stubbornly high until the GOP retakes control of congress and the White House and stops the democrats’ solemn march towards socialism and away from economic freedom.
The clincher in 2012 will be energy policy and energy prices, as I’ve written before here on FR. Because of misguided environmentalist ideology, America is not using our vast energy resources and we’re not producing enough energy here at home. While domestic natural gas production is more than adequate this year, domestic oil production is completely inadequate when compared to domestic oil consumption and the percentage of oil demand that is provided by imports is close to an all-time record high. Global energy prices will continue to rise in the next three years because of strongly rising demand in emerging countries (especially China and India) and restrictions on offshore oil drilling in the US. Oil will move above $100 per barrel later this year or next year, and the response to oil inflation by the moronic democrat leaders will probably be (incredibly) to tax our domestic energy industry more heavily to punish it for rising global oil prices caused mainly by rising demand in emerging economies and restrictions on offshore drilling in the US. The twisted liberal rationale for higher taxes will be something like...”well you oil men failed to produce enough oil here in America and now you’re making too much profit this month and prices are now back above $100 so we’re going to tax you as punishment.” What the liberals, in their economic ignorance don’t understand, is that higher oil prices and higher profits in the short term in the oil industry, are necessary incentives to free people to invest in more oil drilling and exploration. The liberals furthermore do not understand that the temporary surge in profits will subside over time as prices for all oil drilling supplies and services also rise in a signal to all suppliers to increase their investment in productive capacity. This price increase then moves all the way down the supply chain to the producers of steel, aluminum, motor vehicles, and all kinds of industrial equipment used in oil production (pumps, compressors, valves, etc). After all the price increases occur the profit margins for the oil producers at the top of the supply chain will decline back to normal long-term margins. These profits margins are not excessive “windfall” profit margins in any way and are generally well below the after-tax profit margins of many technology and health care companies.
The end results of the punitive taxation of our oil industry will be lower production and skyrocketing energy prices. If significant new taxes on our oil industry are enacted in response to high oil prices, global oil prices will move up over $125 in 2012 and gasoline prices will move up over $4 per gallon. Even without any new taxes, because of all the restrictions on offshore drilling in the US, global oil prices will move up over $100 and gasoline will be pushing $4 per gallon in 2012. (BTW, There’s absolutely no good reason why the federal government should not end all federal restrictions on offshore drilling and leave these policy decisions up to the states to decide where offshore drilling should be allowed.)
Because of all the misguided energy policies of the current administration and congress (and the previous congress), energy prices will move steadily higher and by 2012 our economy will most likely be growing slowly and fighting serious energy inflation. Because of higher taxes on business and higher personal income taxes on entrepreneurs, job growth will remain sluggish and unemployment will still be over 8% in November 2012. This climate of stagflation (caused by policies that restrict domestic production and job growth), will be the biggest reason why the GOP retakes complete control of congress and the White House in 2012. There will be a lot of other reasons for our return to power, but the economy, as always, will be the biggest driving force in that election.
Worked for Clinton- recall "It's the economy, stupid." Which had followed, "read my lips, no new taxes."