I surely am happy to see the US turn itself into what Mark Perry calls, “Saudi America” through its continued development of its oil and gas resources. And while I am nonetheless (even if this had not happened) not worried about “Peak” Oil or Peak Anything for that matter. Nonetheless, I am NOT optimistic that the oil and gas boom will be long-lasting or have much spillover into the rest of the economy. Ought “we” permit its expansion? Sure. Ought “we” be happy about it? Sure. But I would recommend strongly against using this as some “turning point” for America. And I would warn even more that if the boom continues, it may even perhaps be a curse and not a blessing. If resource revenues come pouring in, then where is the urgency to get our entrepreneurial, legal, fiscal, etc. houses in order?
One the one hand, I don’t think that we CAN get our fiscal or legal house in order; it is too far gone because the American people are too far gone at this point. On the other hand, I doubt that tax revenues from increased oil production will do more than a tiny dent, and thus will be inconsequential to “relieving” the fiscal burden on this country (because of the previous sentence). I think all we can really “hope” for is to “keep up” with the growing fiscal mess.
Sorry for my pessimism.
Lower energy prices are good for everybody, but the present regime will do what it can to prevent cheap energy.
