In 98% of cases I agree completely. Precisely because government "help" comes with strings attached and is usually no help at all. Natural Resources is just a bit of a different animal when we examine the industry on a global level. The arugment against my proposition is the government's hand in American Agriculture. And I lose before I begin. But it is worth acknowledging why the best idea was the worst and not applicable to Natural Resources.
The GREAT IDEA that was helping the farmers to not lose money while keeping food prices down was a noble one when farming subsidies were first pondered. Over the years, the exact opposite has become the affect. And this is precisely becuase farming and food prices became dependent on subsidies. Before long, the government started paying farmers not to produce in an effort to control what naturally would nromally control itself, supply and demand.
Why is oil different? It's not much different. Except for the national security angle. If America can continue to take Global Energy Market share from the Middle East, Russia and China, it weakens them. China has invested a lot of money in petroleum exploration and production around the world. If American Companies can be shored up to encourage even more development and continue to under cut the global prices, competition could be bought.
The good thing about natural resource commodidities is it bounces back VERY quickly once the infrastructure is in place. Take away the subsidies and incentives and the price of oil jumps back up and the industry sustains itself, hopefully with American Companies in the driver seat. We have already pretty much broken OPEC.
It might still be a bad idea as corruption grows in our own country. But of all the entitlements and government spending to pick winners and losers, I see the energy market for fossil fuels specifically, as a market that can influence American interests globally.
' I know it goes against everything conservative. But it is a thought to ponder.
No.
Except for the national security angle.
The Strategic Petroleum Reserve is an appropriate use for government related to the oil industry. Subsidies to private industry is not.
I know it goes against everything conservative.
Correct. It is the wrong approach.