You are viewing an obsolete version of the DU website which is no longer supported by the Administrators. Visit The New DU.
Democratic Underground Latest Greatest Lobby Journals Search Options Help Login
Google

Reply #91: That would result in oil drying up for the entire U.S. [View All]

Printer-friendly format Printer-friendly format
Printer-friendly format Email this thread to a friend
Printer-friendly format Bookmark this thread
This topic is archived.
Home » Discuss » Latest Breaking News Donate to DU
Stuttgart77 Donating Member (58 posts) Send PM | Profile | Ignore Sat May-07-11 07:27 PM
Response to Reply #86
91.  That would result in oil drying up for the entire U.S.
Edited on Sat May-07-11 07:28 PM by Stuttgart77
Our economy would come to a screeching halt.

Oil is a commodity and there isn't enough to fill demand in the world today. If a 90% tax were implemented, all U.S. oil companies and supporting refinery companies would close shop here and move overseas. Unemployment would rise dramatically from all the people unemployed in the oil industry and all other industries, because we all have to get to work, transport food, etc. Any oil on the high seas would be directed to other countries instead of us. Since we don't drill as much here as we used to (we've closed many fields off of the coast of California, Virginia and the Gulf and many sites on land), we'd be screwed! You can't turn on those oil wells overnight. Plus, the U.S. dollar isn't nearly as strong as it used to be, so oil producers around the world would be happy to take other countries' currencies over our weak dollar without a 90% penalty. They can do better elsewhere in the world. A 90% tax would push global investors over the edge and out of our markets.

We're not ready to transition over to another form of energy for transportation overnight. You are right, there would be no profiteering. The U.S. would be in a massive depression. Other countries less so.

Careful what you wish for; this is a global economy and we don't have nearly the leverage you think we do. The economics of such a tax are a bad idea.


Printer Friendly | Permalink |  | Top
 

Home » Discuss » Latest Breaking News Donate to DU

Powered by DCForum+ Version 1.1 Copyright 1997-2002 DCScripts.com
Software has been extensively modified by the DU administrators


Important Notices: By participating on this discussion board, visitors agree to abide by the rules outlined on our Rules page. Messages posted on the Democratic Underground Discussion Forums are the opinions of the individuals who post them, and do not necessarily represent the opinions of Democratic Underground, LLC.

Home  |  Discussion Forums  |  Journals |  Store  |  Donate

About DU  |  Contact Us  |  Privacy Policy

Got a message for Democratic Underground? Click here to send us a message.

© 2001 - 2011 Democratic Underground, LLC