Western Maryland is blessed with an enormous amount of cleaner burning natural gas and we need an all of the above approach to energy. I am concerned that there has been a knee-jerk reaction against affordable energy production in our state. Maryland is definitely behind the curve because this administration has decided to politicize the issue rather than take a balanced approach to ensuring we have access to clean and affordable energy sources to power our homes and businesses and grow our economy.
States throughout the country including our neighbors develop their natural gas resources safely and efficiently. Many of these states are realizing an economic boom through gas and oil exploration and are working in concert with groups like the Natural Resources Defense Council to harness these vast resources of domestic energy in an environmentally sensitive way.
Larry Hogan, in response to a WYPR-FM candidate survey, May 2014. (Emphasis mine.)
Three years later, western Maryland is still blessed with an enormous amount of cleaner-burning natural gas, but on Friday Governor Hogan decided it would be better to leave this valuable resource in the ground rather than create jobs and economic opportunities for a section of the state that lags behind the rest of Maryland when it comes to those two very things.
Perhaps we should have seen this coming, though: the temporary moratorium that was in place stemmed from a bill that Hogan allowed to become law without his signature rather than veto it back in 2015. The bill, which as originally introduced was laughably intended to “protect our health and communities,” was amended from a ban extending to 2023 to a prohibition intended to last until October of this year, when the Maryland Department of the Environment was to have regulations in place. But, as Governor Hogan noted in his press conference announcing the new fracking ban, Maryland envisioned the most stringent regulations in the nation – a roll of red tape that would have amounted to a de facto ban if enacted.
And to illustrate the political pressure Radical Green can put on wobbly members of the GOP, bear in mind that the original third reader vote on the 2015 House bill had 45 opposed, but that number whittled down to 33 once the Senate version passed and the House bill (as amended to match the Senate version) went to third reader. The wobblers who changed their votes were Delegates Anderton, Afzali, Beitzel, Carozza, Krebs, Malone, McComas, Miele, Shoemaker, and West. (This list is ten because two Delegates who voted “no” originally were absent the second time, but Afzali changed her vote after the fact to be truly gutless. Interestingly enough, Delegates Anderton, Carozza, Krebs, and Shoemaker all changed back three days later when the Senate third reader came to the House while Delegate Saab opted to join the dark side.) Conversely, the Senate only had two votes correctly in opposition all along, Senators Hough and Ready.
Now we can add Larry Hogan to the list that has wobbled and fallen – this despite a mountain of evidence that hydraulic fracturing, which has been ongoing for over six decades, is safe when done properly. Even the EPA, which put out a final report in the waning days of the Obama administration, noted they found scientific evidence that hydraulic fracturing activities can impact drinking water resources under some circumstances. Yet many of the circumstances they point out could occur at any chemical plant, and they note:
Data gaps and uncertainties limited EPA’s ability to fully assess the potential impacts on drinking water resources locally and nationally. Because of these data gaps and uncertainties, it was not possible to fully characterize the severity of impacts, nor was it possible to calculate or estimate the national frequency of impacts on drinking water resources from activities in the hydraulic fracturing water cycle.
So should I point out again that over 2 million wells have been hydraulically fractured over the last six decades without incident? It seems to me that past performance should be a very good predictor of future results, particularly as the technology advances. And if you read the report, you’ll note that the uncertainty of cause even extends to those limited, rare incidents blamed – many times falsely – on fracking and most publicized by Radical Green.
No one denies there is risk with hydraulic fracturing – just as there are documented issues with low-frequency noise and impacts on bat population with wind turbines and potential for environmental impact as more and more solar panels are spread over the landscape to significant effect – but the rewards from fracking, as measured by both local economic benefits and the lessening of reliance on foreign energy supplies, have been found to outweigh the risks in nearly every jurisdiction where fracking is possible, while the recalcitrant others (Maryland and New York) have believed the hype over the facts.
While Maryland is a small part of the Marcellus Shale formation that has produced the resurgent energy industry in a region that first benefitted over a century ago from an oil boom – there’s a reason we have motor oil from Pennzoil and Quaker State and it’s not because the brand names are cute – this is a time when the domestic oil and natural gas industry is in a holding pattern. Crude oil prices in the $40-50 a barrel range and a relatively constant balance of natural gas supply and demand means that Maryland missed the boat by about a half-decade in the current cycle, but an increased potential in natural gas exports – coupled with a multi-billion dollar investment in Maryland’s Cove Point facility for LNG exporting that’s slated to come online later this year - means our state would have been in good position to benefit in a few years’ time once natural gas exploration began and delivery infrastructure was put in place. (People tend to forget that part of the equation, too.) But politics, embodied in the baseless fear caused by a noisy environmental lobby, ruled the day Friday.
Allow me to let you in on a dose of common sense: there’s no way in hell Radical Green will give Larry Hogan any credit for what he did on fracking come election time. You can bet your bottom dollar that they will flock to whoever the Democrats end up anointing in their primary because their main goal isn’t a clean environment but to have statists in charge of government. Yes, the rank-and-file who might send a couple hundred dollars to the Chesapeake Bay Foundation every year may really care about the health of the bay, but when the people who benefit most from it are the ones who determine the annual “grade” for the cleanliness of the Bay one has to wonder how much of their thumb is placed on the scale. After all, if the Bay had a grade of A and was pristine H2O, what need would there be for a CBF?
The oil and gas industry doesn’t depend on a government subsidy – they just want a fair and predictable regulatory scheme. But a state which has no problem bending the energy trade by mandating a certain percentage of electricity comes from solar energy and demanding ratepayers subsidize an offshore wind farm seems to have an issue with the source that’s been proven reliable over time and is known as a job creator.
As a ratepayer and voter, I was willing to accept the slight environmental risk of fracking in return for a more prosperous state overall as well as more inexpensive and reliable energy. (And yes, I know that the area in question isn’t one where I live. But if I ever secure a piece of land nearby and someone wants to pay me for the right to use my land to explore for energy resources, I’m glad to oblige. No one has yet assessed the Delmarva Basins on which many of us live for their energy potential.)
In 2014, Allegany and Garrett counties provided almost 1/4 of Larry Hogan’s margin of victory as he carried the duo by 16,466 votes in an election he won by 65,510 votes. Add in adjacent Washington County and that number becomes 35,274 votes, or over half his victory margin. At the risk of losing thousands of votes in that region, Larry Hogan has acquiesced to an environmental lobby that’s not going to give him any credit, any dollars, or any votes for the decision he’s made.
I suppose Larry Hogan thinks he’s got an all-of-the-above electoral strategy, too. But at a time he could have changed Maryland for the better, he instead foolishly chose to surrender to the naysayers.
I don’t quite think I have to reintroduce myself to all of you, but it truly has been a long time since I sat down and wrote a piece for the consumption of my readers. (Editing Cathy’s last piece and writing two articles for the Patriot Post doesn’t really count for that purpose, nor does updating my Shorebird of the Week Hall of Fame page to add a couple player moves.) Unfortunately, things won’t improve on that front for some time, but the opportunity which presented itself to take my writing time was one I could not pass up.
But in this interregnum, we were given the bill to “repeal and replace” Obamacare, and since we are told President Trump has threatened to find primary opponents for any Republican who opposes it, I think I’m safe in calling this package Trumpcare. It’s still a government entitlement because there was a replace added with the repeal, and that already put a strike against it in my book.
The document I am going to base my initial impressions on will be the “talking point” document put out by the House GOP. To be honest, I really don’t have time at this point to read the original 123-page bill in depth, although I downloaded it for future reference and glanced through it to help with this piece. I look at this website as what the House Republicans are using as their chief selling points to the bill, so presumably this is their vision for federally-sponsored health care going forward. We have lived under Obamacare for about three years (as I recall, the major provisions did not all take effect before 2014, although some were in place shortly after the bill passed in 2010) so we know its effects: sizable increases in insurance premiums, a massive expansion of Medicaid (paid for in large part by Uncle Sam) to ratchet up the number of people with health insurance, subsidies for those who have less than a certain income yet are forced onto or choose to partake in the individual insurance market, the reduction in the number of competing insurance companies in many areas of the nation (some have just one insurer available to them), and the virtual elimination of catastrophic health insurance plans as insufficient for the needs of those insured. There were also a number of regulations and restrictions on insurers put in place, key among them the requirement of children being covered under a parent’s policy through the age of 26 and the elimination of discrimination based on pre-existing conditions.
With this massive incursion into private industry, for the first time the federal government required purchase of a product under penalty of law – those who chose not to buy health insurance were subject to a “shared responsibility payment” collected by the Internal Revenue Service. Imagine if you had to buy a car every four years whether you were happy with the one you had or not, and you may have the idea of how people felt about this. Obviously the economics of it were to make everyone pay a little something, but that’s not the way a free country is supposed to work for something that’s not essential to core functions of government.
Here are some of the provisions within the American Health Care Act (AHCA):
- It “dismantles” the Obamacare taxes on prescription drugs, over-the-counter medications, health insurance premiums, and medical devices.
Okay, so far so good, although I suppose the definition of “dismantle” is in the eye of the beholder. I glanced through that section of the bill and it looks like this would not take effect immediately but at the end of this year. As a whole, individuals may see a little bit of savings but it won’t be something they will notice.
- It eliminates the individual and employer mandate penalties.
This is perhaps the best news of all, but there is one huge catch to this: instead of paying this as a tax provision, you would have to pay a penalty to the insurance company in the form of a surcharge on premiums if you start up insurance again after not having it for a period of time. And that catch basically negates the whole benefit of removing the IRS from the equation, although I suppose an insurer could use the waiver of this surcharge as an incentive to bring people in.
- It maintains the prohibition on charging more or denying insurance based on pre-existing conditions.
I have a big problem with this – not that it wouldn’t necessarily benefit me because I have asthma but because the idea for an insurance company is to make a profit by balancing the risks shared by the vast pool of policyholders with the expenses incurred by reimbursing those insured for loss. If someone is very likely to be a net loss to the insurer because they have a pre-existing condition, it should be the right of the insurer to refuse service. After all, banks don’t lend money at the prime interest rate to people who have poor credit records or no verifiable means of income because that would put their capital at too much risk for the return, so they either refuse the customer outright or charge an interest rate commensurate with the risk. That should be the right of a private insurer, too.
I was reading on social media that Maryland once had a high-risk pool for such patients, which was bankrolled by the state. While it’s not the use of taxpayer money that would be my most favorite, it is a state’s right to do so if they chose and there was nothing wrong with that system because it wasn’t directly competing with the private sector.
- It keeps the provision of dependents being on their parents’ plan until they are 26.
This is another bad feature of Obamacare that should be buried with the rest of it. If you are 26 you should be able to stand on your own two feet and either be working for someone who offers insurance or be able to afford a plan on your own. (Or choose not to have insurance, which would be your right - although not necessarily recommended.)
- AHCA also establishes what it calls a Patient and State Stability Fund.
Over the next nine years, the federal government will give out $100 billion to the states to assist them with their goals of insuring every citizen. I read quickly through this section and there are some provisions that give me heartburn: there are strings attached to the expenditure of the money and the states are required to come up with a larger and larger portion of matching funds for whatever they use the money for, up to 50 percent by the end of the program in 2026 – assuming, of course, this doesn’t become a more perpetual giveaway (which I’m convinced it will.) There is $15 billion allocated to this over the next two years and $10 billion per year after that, and I’m sure states will say this isn’t enough because they like that financial crack of Uncle Sugar’s money.
- Modernize and strengthen Medicare by transitioning to a “per-capita allotment.”
The legalese on this one is beyond my scope of comprehension, but to me the idea of modernizing Medicare would be that of sunsetting it, not strengthening it.
- Enhance and expand Health Savings Accounts.
One of the better features, although it would be even better with the free transfer of money between HSAs and other entities such as an IRA or 401 (k). If you needed more money in a particular year you should be able to move it without penalty.
- A monthly tax credit for those who can’t afford insurance, up to $14,000 per year.
A subsidy under a different name. Basically they are replacing one tax scheme with another, still targeted to particular people.
All in all, I think the repeal should take place without the replace. It seems to me that we had a whole political movement and a bumper crop of angst spring up over the last eight years because people did not want any part of the government interference in their health care that Obamacare brought to us. Over that time, we lived with the disappointment of Republican excuses: “we’re only one half of one third of government,” “we have the House and Senate but the President won’t sign this,” “we can’t defund because there would be a government shutdown,” and so forth. After 2016, there was a Congress and President who campaigned on repeal, and yet you give us this?!?
A better alternative may be the plan presented by Senator Rand Paul, although it’s not perfect either. But it’s better than the GOP alternative, which is a great letdown for those of us who waited for the moment to eliminate the (not so) Affordable Care Act.
There was a little bit of play in the news over the last few days about the refusal of Congressman Andy Harris to hold a live townhall meeting, instead opting to hold “tele-townhall” meetings where constituents in certain parts of the district can be on a conference call with their concerns. Naturally, the handful of liberals and Obamacare lovers (but I repeat myself) are calling Harris a chicken who’s afraid to come before those he represents. (And they know about calling Harris chicken. This is an oldie but goodie.)
So I had a comment on social media about this.
The (Daily Times) letter writer is misrepresenting the idea of why Andy Harris is holding back on in-person townhall meetings. First, it’s been stated in news reports that he wants to have a GOP replacement plan in place before he discusses the subject in an open forum, which makes sense in that respect – anything else is purely speculative. Obviously there is sentiment for keeping the ACA around, but there are also some who want the repeal without the replace.
And it’s also worth pointing out that Harris, far from being “a paid tool of the pharmaceutical industry,” received more in individual donations during the last election cycle than PAC donations. 62.5% of his contributions were individual, according to FEC records. Compare this to a Congressman like Steny Hoyer, who received only 28.2% of contributions from individuals, and ask yourself who’s being bought and paid for by special interests.
Yes, the writer tossed that Big Pharma tidbit in, so I had to set things straight once again.
Speaking of setting things straight, there is a pro-Obamacare group who is putting together a series of what could be called “empty chair” townhall meetings through the First District. Since they already knew Andy’s stance on having townhalls under the logical circumstance of not having a bill to discuss, what better way of sandbagging him than to have meetings and making him out to be afraid to face his constituents?
Yet I am quite confused about the one in Salisbury, which is scheduled for sometime this Friday. (One Facebook page says 3 p.m. but the other info says 6 p.m. Of course, they must know my calendar because I have a church event so I can’t make it.) If it’s at 6 p.m. there’s a pretty good chance the media will cover it.
But since the true intent of these sponsors is not just to keep the Affordable Care Act around, but allow it to morph into their true dream of single-payer, cradle-to-early-grave government health care for the masses (imagine the VA and its issues on steroids) it may be a good idea for some of the folks who provided the opposition at last Saturday’s pro-illegal immigration rally to show up at this event and ask our own questions about the not-so-Affordable Care Act. I’d like to have their excuses for why it’s failed in its intention to insure all Americans, why the exchanges set up in state after state have gone bankrupt, and why the insurance that’s been deemed acceptable has to cover so much when many in the market were pleased with their catastrophic-event plans? I’m sure you can think of others, not to mention that obvious lie about being able to keep your plan and doctor.
Anyway, we know the Left is still completely butthurt over Donald Trump becoming President – so much so that they are taking inspiration from the TEA Party.
I sort of stumbled across this site, which is a clearinghouse of town hall events held by members of Congress. It sounds innocent enough, and yes there is a public service aspect to it. But if you go to their “about” page, you find the real idea is distributing “a practical guide for resisting the Trump agenda.” So I downloaded my own copy of the “Indivisible Guide” for reference, and right up front the writers admit the following:
The authors of this guide are former congressional staffers who witnessed the rise of the Tea Party. We saw these activists take on a popular president with a mandate for change and a supermajority in Congress. We saw them organize locally and convince their own MoCs to reject President Obama’s agenda. Their ideas were wrong, cruel, and tinged with racism — and they won.
We believe that protecting our values, our neighbors, and ourselves will require mounting a similar resistance to the Trump agenda — but a resistance built on the values of inclusion, tolerance, and fairness. Trump is not popular. He does not have a mandate. He does not have large congressional majorities. If a small minority in the Tea Party could stop President Obama, then we the majority can stop a petty tyrant named Trump.
To this end, the following chapters offer a step-by-step guide for individuals, groups, and organizations looking to replicate the Tea Party’s success in getting Congress to listen to a small, vocal, dedicated group of constituents. The guide is intended to be equally useful for stiffening Democratic spines and weakening pro-Trump Republican resolve.
Of course, an event like Friday’s isn’t quite the same as a Congressional townhall because the panelists aren’t worried about re-election – and quite frankly, the vast majority of those who will be there wouldn’t vote for Andy anyway. In this case, the idea is to sow just that little bit of doubt in the minds of those who are otherwise strictly given a dose of propaganda. Notice that the event is targeting to a community that is more dependent on Obamacare and government assistance than most.
In this day and age of trying to eradicate the Obama agenda against America, the left is fighting the rear-guard action they didn’t think they would have to. The fun thing about the Indivisible page is their “action page” where “Actions are listed provided their hosts agree to resist Trump’s agenda; focus on local, defensive congressional advocacy; and embrace progressive values.” Front and center on this page are these area events, so the truth is out.
So let me ask a question: where’s their complaints about our esteemed Senators? Where is their local townhall meeting?
Perhaps the “silent majority” that elected Donald Trump better start speaking up.
With the whole Trump transition, controversy over various nominees, and other distracting background noise, there are a lot of subjects which have been placed on the back burner – one of them is renewable energy.
I noted a few days back that two pipelines stalled under the previous administration were kicked back into gear once Trump came into office, but at the very end I alluded to two battles shaping up in the Maryland General Assembly. One was the overturning of Governor Hogan’s proper veto of the “sunshine tax,” which I discussed a lot on the Facebook page of the Maryland Climate Coalition (a motley crew of environmentalist wackos, leftist faith-based groups, and a union or two.) The other is their misguided attempt to ban fracking in the state (SB740/HB1325) which has 23 of the 47 Senators as co-sponsors and over 60 members of the House of Delegates. (Think of the sponsor lists as a handy guide for voting for their opponents in 2018.)
A couple days later, I received an e-mail from someone at the National Council for Solar Growth (NCSG), which I gather is a non-profit because she wrote “We’re in a dash to get as much exposure as possible in fear that our funding may soon be pulled. ” According to their website, they are a 501 (c)(3) organization “with a mission to educate homeowners and businesses about the economic and environmental benefits of PV solar,” and some of the benefactors listed are the Departments of Energy and Housing and Urban Development, along with the Global Solar Council and PACENow, which is a financing mechanism that adds an assessment to your property tax bill.
One thing that is worth reading on their website is a case study on return on investment, using a home in Massachusetts as an example. This family spent $55,000 on a 10 kW system, which is probably double the amount some homeowners would require. But once you knocked off rebates, tax credits, solar renewable energy credits, and net metering, supposedly the cost came down to just under $30,000. Realize, of course, most of this “savings” is a subsidy by state and federal governments. In Maryland’s case, the “sunshine tax” that Hogan vetoed would increase the number of solar renewable energy credits utility companies have to purchase – basically they created an artificial market where none existed. In the case of this Massachusetts family, their upfront cost was defrayed by $3,725 and it would continue at that pace for another nine years.
All told, the family would put in about $30,000 but taxpayers and ratepayers would kick in $54,750 – $21,225 up front and $33,525 over the next nine years. The case study also said the family was receiving income of about $350 monthly from the utility company for net metering. It seems like a sweet gig, which is probably why I see Solar City trucks all over the place. But would they be as prevalent if the public money spigot were shut off? I think not, and remember our friend was fretting about NCSG losing their funding. The market may not be sustainable at this point, nor will it become so. Over time, the panels will begin to lose efficiency and may not end up saving them anything.
And then I started thinking about some of those who have been financing the Left over the years, particularly a “green energy” guy like Tom Steyer. Instead of working to mature the market and taking the risks inherent in building it while allowing people to choose whether they wish to participate or not, those financing Radical Green have instead been backing the idea of forcing people to adapt via government fiat. Don’t want to buy a solar energy system for your house? Well, we will just make the utility companies pay for it and they’ll just pass the cost onto you. Can’t find enough private financing to build the market? We’ll just lobby for our own carveouts and earmarks in the name of “saving the planet.” Instead of assisting those interested, they impose their preferences on everyone.
I think a great example of this is the electric car. Once upon a time, way back when, there were rudimentary electric cars produced. But people found it was cheaper and easier to use the internal combustion engine, and the American love affair with the automobile began. As opposed to mass transit, for one thing the automobile equates to freedom of movement: you are not at the mercy of waiting for the next train or bus nor are you restricted to going only to places they serve.
So I suppose it’s a concession from the Left that they decided electric cars are worth an “investment.” The problem is that they aren’t necessarily suited for freedom of movement in the respect that they have a limited range – it’s almost like you have a leash on yourself unless you know of places you can charge up, and that’s not even really an option because, as opposed to five or ten minutes at the local Wawa filling up, you would need at least a half-hour to charge enough for 90 miles. But the government is still trying to bring that market up to speed, to turn a phrase.
Consider the Chevy Bolt, which GM bills as an all-electric vehicle with a range per charge of 238 miles. It’s built on the same platform as their sub-compact Spark, but instead of setting you back about $17,000 as a Spark would a Bolt retails for $37,495. (Some of that is returned in a federal tax credit of $7,500 – again, no one is giving tax credits on the regular Spark. My older daughter and son-in-law would love that, since they both own a Spark.) But to do things right, you would need to install a home charging station, which costs about $1,000 – of which 30% is rebated in another federal tax credit. It requires at least 40 amp, 240 volt service so a rule of thumb is that you will use about 30 kWh to go 100 miles. Driving 1,500 miles a month (not uncommon around here) and that means additional electrical consumption of 450 kWh, which is about 50% of a typical home’s usage for a month. So much for net metering.
So let’s recap: you’re using far more electricity, limiting your range of motion, and costing taxpayers about $8,000 for dubious gain. (And I haven’t even discussed how they get the materials for the battery – hint: it’s not very eco-friendly.)
In essence, what has been going on for the last thirty years is that we have transferred billions of dollars from hard-working taxpayers to those who profit from a belief that mankind can save their planet from the scourge of climate change, which is laughable on its face. As I have said for years, I have no real issue with energy efficiency but that should be sought on a market standpoint, not because we are forced into it or made to pay for it. There are certain things which create abundant energy quite cheaply and reliably: coal, oil, and natural gas. At one time – before my time – we were told (falsely, as it turned out) that nuclear power would be so cheap they wouldn’t have to meter it.
With a government that’s spending $4 trillion a year, isn’t it time to let these giveaways to Radical Green go away? And before you argue about Big Oil and its “subsidies,” read this. America’s economic engine needs reliable and inexpensive energy to run at peak efficiency, and on this cloudy day with relatively calm winds I’m not seeing much from those other sources.
For whatever reason, these days I get a lot more e-mail from the Democratic Party than I do the Republicans. (Perhaps the GOP stuff ends up in my junk mail somehow?) A lot of the time the Democrats’ stuff is comedy gold, although they are getting more than enough mileage out of vilifying the already easy to vilify Donald Trump.
Now I’m going to do something I try not to do here, and that is accept their word as gospel for the sake of argument. Lord only knows what kind of Astroturf George Soros, Peter Lewis, and other big-money far-left donors can gin up for rent-a-mobs, but as I said this can suffice as their case. This is an excerpt from an e-mail I got today.
Republicans are frantically trying to dodge their constituents who want answers about what’s going to happen to their health care.
Virginia Congressman Dave Brat recently complained that “since Obamacare and these issues have come up, the women are in my grill no matter where I go.” Another Virginia Republican, Congresswoman Barbara Comstock, skipped out on “office hours” with her constituents after dozens showed up to ask about her Obamacare replacement plan.
When Arkansans showed up at Senator Tom Cotton’s office to ask about their health care, staffers locked the door and turned them away. Sixteen constituents showed up at Congressman Peter Roskam’s office in West Chicago to voice their concerns about repealing the Affordable Care Act and were told their meeting had been abruptly canceled. Congressman Mike Coffman from Colorado was caught on camera sneaking out of a constituent event through a side door to avoid his constituents’ questions about health care.
After more than 200 people submitted questions for a Facebook town hall with Sen. Thom Tillis, the senator logged off 11 minutes into the 30-minute event.
The Affordable Care Act is more popular than ever. Millions of Americans are reaping the benefits of access to affordable care — and 30 million stand to lose their health care if the law is repealed.
Again, this all may be “fake news” but here’s something that’s not fake: those who don’t want Obamacare repealed are probably the few profiting off of it at the expense of the many, which constitutes a great deal of working America. Since the RCP average has tracked the question in 2009, there has never been a majority in favor of Obamacare. To say it’s “more popular than ever” is true to the extent that it’s less of a dog than it has been.
And the other “fake news” is that oft-repeated claim that Americans will lose their health care if the Affordable Care Act is repealed, and that’s not so. It’s federal law that emergency care has to be provided regardless of ability to pay. Nor is this considering how many people have decided to take their chances with the tax penalty since it would be less expensive than health insurance.
So this is a message to Republicans who are getting cold feet about repealing Obamacare: find yourself a fire and warm them up – let’s do this thing. The Democrats are so full of crap their eyes are brown: America wants Obamacare to be gone!
Yet there is the question of cost, because medical expenses are, well, expensive. I have a theory on that, though, and it relates to a similar phenomenon in another aspect of life.
Look at the cost of college tuition as an example. To some, the cachet of a degree at a prestigious university is irresistible, and they will pay whatever it takes to get it. Some people who are more academically suited to a state university still demand to go to an Ivy League school, and those schools know this. They also know that a) these students will likely go many thousands in dollars in debt, and b) they get paid up front by the federal government. Whether the student pays back his or her loans or not is immaterial to them because they got their money, and because of that these schools are padding their tuition and fees because they can. Maybe it’s to increase their endowments, but oftentimes it’s to provide non-educational amenities.
Let me share a story with you. I went to college from 1982-86 at Miami University in Oxford, Ohio. It was selected because it had the program I sought to major in and was in-state so my tuition was lower – although higher than most others, as it had the reputation of being the best state school in Ohio academically. (So there was a little bit of cachet factor, too.) Very nice campus, relatively solid education. I would have been happy to see my older daughter go there, but she had other plans.
My wife at the time was a non-traditional student who had gone to another school before having the older daughter in question (I’m her stepdad.) So, after we married, she enrolled at the University of Toledo, which is more of a commuter school. Yet one thing they had was a state-of-the-art recreation center, paid for by the state since UT is a state school, too. I got to enjoy the facilities on occasion since my ex was a student, and they were nice. Soon enough, all of the other state schools were getting in line to have similar facilities put up and sometime in the 1990s, well after I graduated, Miami got theirs. While it may have been beneficial for the small percentage of those who majored in physical education, the real reason these were put up was so each of these state universities would have something to attract students. More students = more tuition and fees = job security for the thousands of university employees. And as I said: they got their money up front, never mind the students were saddled with debt for a decade or more. (As I recall, I didn’t finally pay my student loans off until 2001 or so.)
Now look at the medical field. Obamacare placed it in a similar position to that of state universities because it was flush with federal cash – as originally envisioned, people would either have their medical care paid for directly by the federal government (Medicaid) or they would give insurance companies a captive audience with relatively few choices via the exchanges. Insurance companies, in turn, were supposed to have “risk corridors” and other accounting tricks and bailouts to make them whole – the only people who would be left holding the bag would be the ones who actually paid for the insurance, and many of them on the individual market received subsidies from Uncle Sam, too as well. No wonder it cost a trillion dollars a year.
The weakness of the Obamacare system is that there’s no real incentive to cut costs. Yet there are two groups of beneficiaries who stand to lose the most if the ACA is repealed: those who are getting the subsidies or “free” insurance from the government and those providers who have been able to just keep raising prices because there’s a massive pot of money they want to get their paws into. Therein lies the rub: Obamacare is now in a place where it cannot be just cut cold turkey – there has to be a year or two transition period, and of course that gets into election time.
It’s worth reminding readers that Obamacare has its roots in what some dubbed Romneycare: the insurance mandate Massachusetts put into place several years before. To be quite honest, that is where the solution lies. Perhaps it would be appropriate to block-grant funding to states for a interim period of up to three years and allow them to tailor their own programs and set up funding mechanisms. States can choose to have all the bells and whistles or they can choose to invest their resources elsewhere, and that’s the way it should be. I think this would take care of most (but not all) of those who are getting the largest benefits. The others can vote with their feet if they so choose: government is not supposed to be all things to all people.
On the cost side, I think any and all federal insurance coverage mandates should be scrapped, allowing states to set their own systems and priorities. Now it can be argued that having 50 different systems would be difficult for a health insurance provider to navigate, but auto insurers already do this. There are advocacy groups out there that suggest how states can streamline the process by being similar to other states, so I suspect most states will have health insurance requirements that are fairly similar. Maryland may have the extreme in required coverage on one end while Texas may be the flip side. Because of this, I’m not sure selling insurance across state lines is necessarily doable in the respect that I can’t buy a Texas policy living in Maryland. But states should be encouraged to allow insurance products that reflect everything from the catastrophic coverage health insurance was originally to the Cadillac plans that pay for everything, even your hangnail or gender reassignment surgery.
So, the replacement for Obamacare is a more free market and freedom of choice to participate. Sorry, Democrats, but Obamacare has to go to help make America a healthy nation again. If Andy Harris has a townhall, hopefully he will stand his ground and make the case for repeal.
I was sitting on some stuff from my old friends at API for awhile, but I decided it was getting a little too stale and broomed it. Luckily for both of us, events and more concise blogging make for a far better analysis, to wit from the Energy Tomorrow blog and Mark Green:
President Trump’s executive orders clearing the way to restart the Keystone XL and Dakota Access pipelines are welcome indeed. Both projects represent great opportunity for U.S. jobs, consumer benefits, economic growth and strengthened energy security.
At the same time, the significance of the White House’s action goes beyond a pair of important energy projects. It’s a signal that long-needed energy infrastructure will once again be able to advance in this country – under regular-order reviews and approval processes – providing broad benefits to millions of Americans. That’s huge.
Both projects had become political footballs, with political agendas trumping science, factual analysis and careful, lawful governmental review.
Keystone XL was reviewed five times by the U.S. State Department, which said the pipeline and the Canadian oil sands it would deliver to U.S. refiners would not significantly impact the environment. It enjoyed strong, bipartisan support from the American public, which saw the privately financed project as a job creator and economy grower. The builders of Dakota Access followed regular permitting and approval processes – only to see politics prevail over the rule of law – with the 1,172-mile pipeline just 1,100 feet from completion.
President Trump’s executive orders allow both projects to get on track again. API President and CEO Jack Gerard:
“We are pleased to see the new direction being taken by this administration to recognize the importance of our nation’s energy infrastructure by restoring the rule of law in the permitting process that’s critical to pipelines and other infrastructure projects. Critical energy infrastructure projects like the Keystone XL and the Dakota Access Pipelines will help deliver energy to American consumers and businesses safely and efficiently.”
I find it amazing just how little of the DAPL was controversial: it would be like driving from here to Key West to stay free at a Gulf-front cottage for a week only to find the last bridge is out and no repairs are scheduled for the month.
While I’m sure the folks in the media work hard to keep a sharp eye out for pipeline mishaps in this day and age, the fact that there’s a “dog bites man” quality to these stories means that they’re a pretty safe way to get oil and natural gas from one place to another. To hear Radical Green tell it, we should have totally contaminated Gaia ten times over by now, so the fact that we haven’t means either we do a good job of keeping environmental damage to a minimum (which, in the long run, pays dividends for these energy companies) or Mother Nature does a pretty good job of healing itself. (Consider the Deepwater Horizon from the more immediate perspective to that of more recent vintage, when those studying had to speculate on mental health of residents because the seafood coming from the Gulf was deemed safe.)
There won’t be a whole lot of jobs from DAPL now (since there’s less than 1/4 mile remaining to be built) but there will be jobs with Keystone. More importantly, this commentary from API reflects their optimism that the Trump administration will be more amenable to their interests, something that was missing over the last eight years despite the industry’s relative prosperity.
Closer to home, here’s hoping that streak continues: there’s been a full-court press on the Radical Green side to keep Democrats in line regarding Governor Hogan’s veto of the “sunshine tax” but also, more behind the scenes, there’s a call for a permanent fracking ban in Maryland. For that I have two words: big mistake. Our options should remain open, particularly since the regulations are being finalized.
America has abundant energy in many places, so if you have it you may as well use it for our good. No need to keep it in the ground – that’s the place for the pipelines to go. Let’s get to work.
One of my favorite commentary websites is The Resurgent, Erick Erickson’s site that just turned a year old, tried a different business model for a time, and gave me (or at least a photo I took) a brief brush with fame. (He also co-authored a whale of a book.) But it seems being #NeverTrump during the campaign came with a cost there, too:
While I don’t regret my choices, I have to admit it hurt professionally and has brought The Resurgent to the brink of going out of business. Any sponsors who did not bolt last year were, at best, forced to scale back. Many of them came under withering attacks and calls for boycott, as did my radio advertisers. It was more effective than I would like to admit, though we kept the lights on thanks to the generosity of others. That may be coming to an end now.
Someone needs to plant their flag for defending conservatism, even against the GOP, whether it be Trump’s GOP or someone else’s. That’s what I intend to do — to call it as I see it. But that only gets me so far without the help of others here and, frankly, our bank account is crossing into critical territory.
Before I started The Resurgent, I asked for help and readers generously gave us over $65,000.00. But this past year, between all the health and personal stuff going on and the professional toll of the campaign, I did not want to push the issue as much as I should have. By the time I got around to really asking, it was just after Thanksgiving. The result is that readers only contributed $19,000.00.
With our advertising revenue, that helped us get through the year, but we ate into our reserves.
The reality is that if we cannot boost ad revenue and, hopefully, count on you guys, we will have to wind things down. I know this will generate laughter from both the alt-right and the left. A conservative site shuttered because of a refusal to kiss a ring does such things.
I would imagine there is a percentage of those who read here who think Erick deserves it for going against the Republican nominee. Obviously then they think I deserve the readership loss I had, perhaps for doing the same thing. (It was quite severe, too: I haven’t had numbers like those since the early days – but then again I also slowed the pace of my writing a lot, which honestly may explain much more of the decline. I would rather write fewer, better things though than slap something together I’m not that pleased with and if it’s not daily, so be it.)
Yet I’m not going to kiss a ring, either. So far I have a “wait and see” approach to the incoming administration as some of those Donald Trump has selected to head his Cabinet departments sound like good choices and some do not. And the GOP Congress also has a role to play regarding the legislation Trump will have to sign or veto. Yet the fact that those on the left are having conniption fits over the prospect of a Trump administration at least gives me a laugh. For example, I get Senator Van Hollen’s Facebook feed and occasionally leave a comment. But those comment threads are popcorn-worthy. Teachers seem genuinely worried that Betsy DeVos (who Erickson called “a staggeringly good choice“) will become Secretary of Education, and I say: why not? It would be great to have her be the last Secretary of Education before the department is dismantled, although that would only last as long as the Democrats are out of power.
Once the newness wears smooth, though, we will see just what a minority of Republicans (and voters overall, although he obviously won enough states) have wrought on us. Unfortunately, for conservatives it’s sort of a Faustian bargain because if he succeeds people will say it’s because of Donald Trump’s populism, but if he fails Trump will suddenly become more conservative than Reagan ever was, just to put an albatross around the neck of the Right. Obviously the equation of Republican with conservative will play a role in this.
But to circle back to the original point, I’m hoping people come through with enough support to keep Erick’s site going. Certainly he’s not in a situation like some other destitute “bleggers” have been over the years, but he has a family too. We need bloggers like Erick to keep The Donald honest, even if his biggest fans don’t want to listen.
Two weeks ago, in the waning days before the Christmas holiday, perhaps 40 to 50 brave souls dealt with the cold weather to state their case for job creation in western Maryland and beyond. I don’t think the Maryland Energy Citizens and Energy Nation Rally drew a lot of interest outside the energy field beforehand (except perhaps from me) and in doing a news search for the event I found exactly zero coverage. (The photos I’ll use here were Tweeted by Energy Citizens.)
It was a modest gathering to be sure, but those who showed were interested in regulations that would allow for job creation – directly in Allegany and Garrett counties, and eventually spilling over into other parts of the state as the infrastructure needed to move the natural gas to market is placed. And there was one group who understood this well.
The folks in the orange shirts were members of the Laborers Union, which would stand to benefit from the infrastructure being built. In the universe of the left wing, oftentimes Big Labor and environmentalists stand on opposite sides because the union side understands better the economics of utilizing our energy resources to provide the clean and reliable power we need to keep the economic engine going, while environmentalists seem to think that the wind will always blow and the sun shines every day so we can rely on those sources. With their entrenched opposition to energy progress through additional exploration and infrastructure construction, Radical Green would shortly have us in the same boat as the New England states when it comes to energy costs, especially at this time of year.
Yet in the days since I’ve learned of a study from the University of Chicago that has attempted to quantify benefits and costs of fracking, with the study being summarized thus:
The benefits include a six percent increase in average income, driven by rises in wages and royalty payments, a 10 percent increase in employment, and a six percent increase in housing prices. On the costs side, fracking reduces the typical household’s quality of life by about $1,000 to $1,600 annually – excluding the increase in household income.
As a point of reference, the average household income across the two counties is about $42,000 so a 6% increase would be a net gain in household income equating to approximately $2,500. And considering energy jobs tend to pay more than average, the 10% increase in employment would be a boost to the median so the benefits could work out to $3,000 or more while the somewhat dubious “quality of life” costs would not be so affected.
I noted above that there was no coverage of the rally by the local media, but that very day the Baltimore Sun chose to run a laughable screed by Senator Cardin about the prospect of the incoming Trump administration abandoning the Paris Climate Agreement; a diatribe that included this howler:
In 2015, investment in renewable energy was nearly $350 billion worldwide, more than fossil fuel energy. Even though gas and oil have hit record low prices, current and projected prices for renewables are low too, making clean energy solutions remarkably competitive.
The huge piece of information unspoken here is how much of that renewable energy “investment” was picked from the pocket of unsuspecting taxpayers, nor does it account for the amount of the market carved out for renewables artificially by state mandate. Nor should it be our intention to follow Europe and take the blue pill, thinking mankind has one iota of effect on the global climate in the long run.
Sadly, it may be almost as much of a folly to believe that a small group of common-sense protestors will have an effect on a group of legislators who mistakenly believe that restrictive regulations will encourage job creation or that a fracking ban will benefit the state. But I encourage them to keep trying anyway because people who can see the long-range picture will realize you are on the right side of this.
Last year I did this in three parts, but to me that may be overkill this time around. Consider that 2017 is not an election year, so if anything we will not see much on that front until the latter stages of the year as the campaigns for 2018′s state elections ramp up. And because all but one of our local officials are first-term representatives in their respective offices, it’s likely they will wish to continue in office. Bear in mind, though, on the Senate side longtime House member Addie Eckardt will be 75 and Jim Mathias (who is in his second term as Senator after one-plus in the House) will be 67 by the time the next election comes around, so they are likely closer to the end of their lengthy political careers than to the beginning. And thanks to Wicomico County voters who passed the referendum this past November, 2017 will be the year we formally set up the elections which will net the county its first fully-elected Board of Education in late 2018.
Speaking of the local BOE, we still have an appointed board until that election and the two members whose terms expire this year are both Democrats who are term-limited. I suspect the local Democrats will try and send up names of people who will run for seats in 2018 to gain that incumbency advantage – as envisioned, though, these will be non-partisan elections. And the final say goes to the state Secretary of Appointments, who over the years hasn’t always been kind to those we preferred, either. Or, conversely, since the incumbents serve until their successors are appointed, we may see a long stalling technique, too. It will be interesting to see how that plays out, but I’ll bet those who are appointed will use that tenure as a springboard for eventual election.
Elsewhere in Wicomico County as 2016 comes to an end, it appears the city of Salisbury and Wicomico County are working out their issues rather well. The biggest sticking point remains fire service, and it’s relatively likely the city is going to see more of a reimbursement from the county when it comes to that – perhaps to the tune of up to $2 million a year. It’s possible there may be something to cut to make up for this, but as the county has increased its debt in the last few years to build several schools it leaves less room for spending cuts to make up the difference. If the city receives $2 million annually that would equate to about a 3 or 4 cent property tax increase for county residents. There’s also the chance that a tax differential or rebate may be on the table in order to reimburse city residents, as they pay the same tax rate as county residents. Wicomico is one of only three counties in the state that choose not to provide a tax differential to their municipalities.
But there is another factor to consider. Back in June the number of people working in Wicomico County set an all-time high of 52,010, eclipsing a mark that had stood for nearly a decade (July 2006.) That record lasted a month, as July came in at 53,668. While the number of jobs has finally reached where we were a decade ago, bear in mind the labor force is about 1,000 larger – so unemployment is in the 5.5% range rather than 4%. Even so, that extra number of people working – a number which year-over-year between 2015 and 2016 has fluctuated quite a bit but usually comes in at 1,000 or more additional workers in 2016 – means there’s more revenue to the county from income taxes so paying the city of Salisbury may not be such a heavy lift. The question for 2017 will be whether these economic conditions continue and whether Wicomico County will want to spend every “extra” dime on items which are unsustainable in rougher economic times.
That same question goes for the state, but the trend there has been for more spending. Democrats in the General Assembly added millions in mandated spending to the state budget and it’s a sure bet they will try again this year. Add to that the general belief that year 3 of a Maryland political cycle sees the most ambitious agenda put forth – it’s time for those incumbents to bring home the bacon and burnish their re-election chances the next year – and you can bet that paid sick leave will pass, Radical Green will have its day (perhaps with a fracking ban, which would devastate Western Maryland), and any Hogan veto will be promptly overridden. It’s certain that they will leave enough time in passing these controversial bills to do so. We’ve already seen battle lines drawn with the counter-proposal from Governor Hogan on paid sick leave and the social media-fueled drive to repeal the “Road Kill Bill” that Democrats passed over Governor Hogan’s veto in the spring of this year.
The wild card in state politics, though, comes from national politics. It’s not because we had the well-publicized answer to an extremely nosy press – if only they paid as much attention to some of Martin O’Malley’s foibles and scandals! – that Larry Hogan wasn’t going to support his (nominally at best) fellow Republican Donald Trump, but the idea that Donald Trump may actually do something to cut the size and scope of government. (Military contractors, particularly, have reason to worry.) And because Maryland’s economy is so dependent on the federal government, to a shocking and sickening degree, we know that if Trump begins to make cuts it will hurt Maryland the most. Given the typical bureaucrat CYA perspective, it explains perfectly why four of the five jurisdictions Trump did worst in - the only five which came in below his 35% statewide total – were the four counties closest to the District of Columbia (MoCo, PG, Charles, and Howard. Baltimore City was the fifth.) While I am entirely a skeptic on this, there seems to be the belief that Trump will take a meat cleaver to the budget and thousands of federal and contract workers will be cast aside because of it.
And in a situation where revenues are already coming up short of forecast, a recession in the state’s biggest jurisdictions, coupled with the mandated spending Democrats keep pushing through, will make it really, really difficult on Larry Hogan going into 2018. You will be able to judge who has the most ambition to be Governor by who carps the longest about these cuts.
While the Dow Jones stalled this week in an effort to breach the 20,000 mark by year’s end, the rise in the markets echoes consumer optimism - even as fourth quarter GDP forecasts turned a little bearish, consumers still feel a little better about the state of our economy. If we can get the 4% GDP growth Donald Trump promised we may see some of these fiscal crises take care of themselves.
Yet there was also a sentiment in 2016 that the world was going mad: consider all the terror attacks, the seemingly unusual number of and extended shock over high-profile celebrity deaths, and a general turning away from that which was considered moral and proper to that which fell under the realm of political correctness, wasn’t a “trigger” and didn’t violate the “safe spaces” of the Millennial “snowflakes.” (I can’t resist linking to this one I wrote for The Patriot Post.) At some point the pendulum swings back the other way, but in most cases that takes a life-changing event like 9/11 or Pearl Harbor. I’d prefer a much softer transition but a transition nonetheless.
As I see it, the key word for 2017 will be leadership: if the current elected officials and new President have it and use it wisely to the benefit of our county, state, and nation “so help me God” things will be okay. If not, well, we’ve seen that movie for about eight or ten years already and we will continue to slouch toward Gomorrah.
For all the hype and hope that somehow the Trump Train would be derailed over the last year-plus, that engine has reached its destination with the Electoral College formally making Donald Trump the President-elect. Indeed, the guy who many of us thought would have his poll lead evaporate once the field was narrowed down and figured in no way could defeat Hillary Clinton served us a heaping helping of crow. (And it wasn’t the best-tasting stuff, either.)
Perhaps what was most hilarious about the Electoral College vote was that Hillary Clinton had more defections than Donald Trump did. From the state of Washington, four of the twelve electoral votes she was supposed to receive went to others: former Secretary of State Gen. Colin Powell received three while Sioux tribal activist Faith Spotted Eagle received one from a fellow Native American. (I would imagine she may be the first Native American to receive a Presidential electoral vote.) Also, one of Hawaii’s four electoral votes that were supposed to go to Clinton went to Sen. Bernie Sanders. There were other Democrats who attempted to vote for others in protest but they either changed to Clinton or were replaced by another substitute elector.
Coming off the Trump ledger were two Texas votes: one for Ohio governor John Kasich and the other for former Congressman and three-time Presidential candidate Ron Paul, who finally got an electoral vote in a year he did not run (although his son Rand did.) So if you count the nominal Republican Powell as a member of the GOP, the Republicans got 309 of the 538 votes. (The GOP also picked up an extra vote for the vice-presidency, where Maine Sen. Susan Collins received one of Washington state’s four faithless votes along with fellow Senators Maria Cantwell and Elizabeth Warren. Native American activist and two-time Ralph Nader Green Party running mate Winona LaDuke received the other. No Republican defected from Vice-President-elect Mike Pence.)
So we have much of Donald Trump’s cabinet in place (pending confirmation, of course) and the transition is well underway. But it’s still less than clear to me just what we can expect from a Trump presidency. I will say that, after an initial steep drop, the Dow Jones and NASDAQ have looked favorably upon it and anecdotally I’m hearing the real estate industry is expecting a banner year (although interest rates have finally edged up after a long period of stability.) If perception is reality, perhaps we can get to the 4% GDP growth Trump promised – and the post-election euphoria may help Barack Obama enough to avoid going 0-for-8 on 3% or better growth, as the election happened early enough in the fourth quarter to possibly have a significant impact.
On the other hand, holiday sales results are mixed, as shoppers still have discounts in mind. The turning away from brick-and-mortar stores may lead to some significant closings in 2017, which will be blamed on Donald Trump rather than the continuing trend of shoppers to go online to buy their gifts.
Meanwhile, Donald Trump will certainly be tested on a leadership level, with today’s murder of Russia’s ambassador to Turkey leading some conspiracists to believe it’s the first shot of World War 3. That incident managed to temper the newsworthiness of another truck-based terror attack, this time in Berlin. And don’t forget the president-elect has already spoken out about the drone incident with China over the weekend.
In many respects, the speculation on what Trump’s effect will be has already written the bulk of an annual piece I’ve done, looking ahead at the next year. It’s not quite as short or sweet as last year’s but I suspect the era of Trump sets the tone for 2017 to such an extent that I’m just going to skip that look forward for the year and assume this will suffice.
Assuming no act of God to the contrary, all this will begin in earnest at noon on January 20 when Donald Trump becomes our 45th (and perhaps most accidental and unlikely) President.
I’m certain there’s a percentage of my readers who would disagree with the title, but for those who would like to improve our state there’s a chance to take action: specifically a week from tomorrow, but in general before the Maryland General Assembly begins its annual “90 days of terror” in January.
I was introduced online, through a mutual friend, to one of the leaders putting together a rally in Annapolis, as she explains:
The Maryland legislature is considering regulations that would finally allow natural gas development in our state.
We need to show that Marylanders want responsible energy development and that any regulations MUST be reasonable and consider their impact on Maryland jobs and energy costs.
Please join us Tuesday, December 20 for an Energy Citizens and Energy Nation Rally to support clean and affordable natural gas and jobs for Marylanders!
The Energy Citizens group is springing for breakfast at Harry Browne’s beginning at 8:30 a.m. before reconvening for the rally at 9:30 a.m. on Lawyer’s Mall. (All they ask is that you RSVP first.) They will stay until 11, hopefully long enough to make their point, which is:
A Maryland legislative committee is considering new regulations for natural gas development in our state. Any regulations MUST be reasonable and consider their impact on Maryland jobs and energy costs.
Responsible energy production would give Western Maryland the chance to create thousands of good-paying jobs, boost the local economy, and make energy more affordable for families and businesses across the state. But time is short.
Please Email your Representatives now. Tell them you support responsible natural gas development and to consider jobs and energy prices when any new regulations are being discussed!
Hydraulic fracturing is safe, and reasonable government oversight and regulation are appropriate, but Maryland should follow the example of dozens of other states where production has proceeded safely for years.
The Western part of our state should have the chance to create thousands of jobs and stimulate their local economy. Our families deserve affordable energy to heat our homes and power our businesses. (Emphasis in original.)
Now this is the part where I may go off the organizer’s script (if she had one in mind for me) but I’m a guy who tries to give the straight scoop. The lefties* at SourceWatch sneeringly call Energy Citizens “a front group backed by the American Petroleum Institute,” and the backing part is absolutely true. I knew this awhile ago because I’m quite familiar with API. It’s a very good group from which to get energy information, and I have a vested interest in keeping energy as reliable and inexpensive as possible – it’s called electric and heating oil bills to pay. 200 gallons in the oil tank isn’t cheap, but we needed to get them nonetheless to have a full tank once the cold weather hit. I definitely prefer not to have to run my laptop and internet off a battery and at this time of year I like to be something close to warm.
And look at the approach they are taking, saying “reasonable government oversight and regulation are appropriate.” They are not advocating for the Wild West of fracking, but something that is reasonable – unlike the authors of the various proposals in the General Assembly. I’ve not forgotten that the original first reading bill that mandated the halt on fracking through October of next year originally had an expiration date of April 30, 2023 – and only after a panel stacked with “public health experts” as opposed to those expert in ”science and engineering” were charged to ”examine the scientific literature related to the public health and environmental impacts of hydraulic fracturing.” I wonder what a panel of “experts” appointed by liberal leadership would have found? </sarc>
Bear in mind that the bill was not properly vetoed by Governor Hogan, but he didn’t sign it either. He just let it become law without his signature, rather than tell these misinformed environmentalists to pound sand and dare the Democrats to vote against good jobs once again.
Furthermore, according to that bill, these regulations should have been in place by this past October. The MDE, however, was about 6 weeks behind and put them out November 14, with public comment closing later this week. Assuming they are close to those detailed back in June, the state will have some of the most stringent regulations in the nation. That doesn’t seem to be very balanced or reasonable.
If I were to make a modest, sensible proposal, I would posit that Maryland’s regulations should mirror Pennsylvania’s as closely as possible, for a very logical reason: for most of those companies already doing business in Pennsylvania, that portion of Maryland is but a short distance from their other operations and would likely by overseen by supervisors based in Pennsylvania – a state which, by the sheer size of its share of the Marcellus Shale formation, will have far more natural gas output than Maryland ever will. If Maryland even gets to 10% of Pennsylvania’s output it would be a victory for the Old Line State. So why not make it easy and convenient for those experts in the field, considering that they’ve had the better part of a decade now to iron out the kinks just on the other side of the Mason-Dixon Line?
At the market price for natural gas, we should be doing all that we can to make it easier to create the good-paying jobs (not to mention the royalty payments landowners could receive) for a part of the state that, like the Eastern Shore, always seems to lag behind the economic curve thanks to shortsighted policy decisions in Annapolis. I hope a lot of my Western Maryland friends (and maybe some from our part of the state) go to support a better way of life for themselves a week from Tuesday. They’ll even bring you over to Annapolis from the west side of the state.
You can call me just another Energy Citizen.
* I like this description of the Center for Media and Democracy, which is the backing group of SourceWatch:
CMD takes significant sums of money for its work from left-wing foundations, and has even received a half-million dollar donation from one of the country’s largest donor-advised funds – all the while criticizing pro-business or free-market advocacy groups who also use donor advised funds or rely on foundation support.
Don’t you love the smell of hypocrisy in the morning?
I’m really not a great fan of tax breaks and such to attract or maintain companies, but I’m realistic enough to understand that most states and regions use these as one of the weapons in their arsenal to attract new companies. (Case in point: last year Governor Hogan proposed a ten-year tax break for companies relocating to certain parts of Maryland, but the proposal went nowhere.) So it was with Carrier Corporation, which was supposed to abandon the state of Indiana for Mexico but brought that move to a screeching halt at the behest of President-elect Trump and his running mate, Indiana Governor Mike Pence.
One thing that has been brought out in the general conversation over Carrier’s change of heart was the Trump proposal to punish companies that move overseas. He’s proposing a 35 percent tariff on such firms, so under his idea had Carrier moved its operations to Mexico they would have had a 35% surcharge on their product.
But the incoming President is also advocating for a series of proposals to make America more business-friendly, such as cutting regulations and lowering the corporate income tax from roughly 35 to 40 percent down to about 15 percent. (These are ballpark figures, but that’s okay since Trump only sees these as starting points for negotiation anyway.)
The reason I bring this up is to make the case that all the carrots should be utilized before a stick is ever brought out. It’s patently obvious that America doesn’t make things like it used to, but the factors of why are most important. Just off the top of my head, here are some possible reasons:
- Overseas labor costs are far cheaper.
- There are fewer labor and environmental regulations to deal with.
- China is a larger market overall and is growing in its consumerism.
- The tax structure overseas is more beneficial.
However, even if all these things are true, it boggles my mind that it’s possible to profit by creating a product halfway around the world and shipping it back here on a slow boat when the most affluent consumers are still in the good old U. S. of A.
And then you have certain advantages we can exploit for ourselves: a first-class transportation system, a ready-made skilled workforce, and sufficient, reliable energy that’s inexpensive. Unfortunately, previous administrations were reluctant to allow companies to use these advantages, so they departed for greener pastures. In the case of labor-intensive products such as clothing, it’s not likely they will be coming back.
But at the same time we are looking to make things in America, it’s worth pointing out that these things that we can make use more and more automation to create. I’ll jump across the pond for this example, but a reason cited for the demise of the long-running Land Rover Defender model (a 67-year run) was that:
Five hundred workers build the car by hand – there are fewer than 10 robots on the whole line; step across to the Range Rover line on the other side of the Lode Lane, Solihull factory and you’ll find 328 robots.
If you assume that each robot takes the place of a single employee (which is probably generous to the employees) that means about 1/3 the manpower built the Range Rover compared to the Defender. The same is true in Detroit and Japan. To a manufacturer, there’s a lot of appeal to automation: it doesn’t take smoke breaks or mental health days, won’t come back from its lunch break drunk or stoned, and won’t go on strike for ever-increasing health care benefits or wages. The quality of work is very consistent, too, and once set up there’s no such thing as training a new hire.
For decades, though, workers have used machines to assist them in creating products – even the assembly line itself was a vast machine that automated the process of moving the frame of the car along as its component parts were added. Plastic products aren’t really created by hand, but by machines that extrude the parts for them – an offshoot of the process is 3D printing. When you come right down to it, the Carrier plant is one where premade components such as a motor, fan, cooling unit, outside shell, and electronics are assembled to create a larger product, which is where the value is added in this case. There’s not a huge amount of skill needed to put these things together – the skill comes from the design of these units to keep up with the demands of regulation, consumer preferences, and profitability. (Apparently the luckless Land Rover Defender stopped keeping up with these demands.)
But no amount of physical skill can overcome the capricious nature of government whim, and this is where Trump’s idea becomes somewhat impractical. Let’s say in three years Carrier decides it has to move production to Mexico, so it becomes subject to the 35% tax. A unit that cost $10,000 will now have to run at $13,500.
On the other hand, Carrier’s competitor Fujitsu, which is headquartered in Japan, may have a price for a similar unit of $11,000 because they have to ship it over. (For the sake of argument, I’ll assume their products are made overseas.) Thanks to Trump’s proposal, they can raise their price to $12,500 – making more profit for their foreign owners yet still undercutting their competition. Similarly, if Trump decides to go full-bore protectionist and slap tariffs on imported items, there’s no doubt everyone else will do the same thing and that will kill our export market.
I understand the frustration Americans have when they perceive China and others are beating us economically because they are cheating. Truthfully, they could be absolutely correct – in the case of China, I put nothing past Communist scum. But the solution is to make China less attractive by making ourselves more attractive, not trying to punish people. If Trump wants his 35% penalty, that should be the absolute last resort once all other efforts have been made to make our nation as business-friendly as possible. Unfortunately, I think The Donald is too vindictive for his own good.
Someone will pay for all these Carrier incentives, and I suspect these far smaller businesses will be the ones who suffer for the sins of others around the world.