Drill Here? Why Now?
John McCain's proposal for a gas-tax holiday went over like a ton of bricks. But his proposals to open up the continental shelf for drilling have struck a chord. A recent CBS/New York Times poll showed that Americans back offshore drilling, 62-28; a bipartisan group of senators is at work on a compromise, and House Speaker Nancy Pelosi has signaled openness to the issue. Expect to hear a continuous chorus of "Drill here, drill now" in Minneapolis this week. But as a short-term fix, offshore drilling is just as lame as a gas-tax holiday. Exploring off the beaches of south Florida won't bring new supplies to the market for several years. And when offshore oil does arrive, the amounts will be so small compared with global demand that they won't have much impact on the price we pay. So why has drilling resonated? NEWSWEEK's economics expert Daniel Gross offers five theories:
• Vast right-wing conspiracy: The gas-tax holiday was derided by the economic-policy wing of the Republican Party. By contrast, the Republican noise machine—the Wall Street Journal editorial page, Washington think tanks, talk- radio blowhards, the dwindling core of Capitol Hill Republicans—has marched in impressive message lock step for drilling.
• Vast Marxist conspiracy: By sapping the highway trust fund of construction funds, the gas-tax holiday was a potential job killer. Domestic drilling, by contrast, is something akin to a jobs program for highly paid blue-collar workers.
• Screw the foreigners: Call it national security, or call it chauvinism, but drilling for domestic oil sets up a zero-sum game. Every barrel of oil produced here is one we don't have to buy from our long and growing list of enemies: Venezuela, Iran and Russia. By contrast, a gas-tax holiday just offers more opportunities to enrich Hugo Chávez and Mahmoud Ahmadinejad.
• Mytho-historical: Wildcatting for oil conjures up legendary fortunes (Rockefeller, Getty, Hughes) and feeds into romanticized notions of how the nation was built by pioneers who tapped into the natural bounty of this resource-rich land. Think John Wayne and "There Will Be Blood." Gas-tax holidays conjure up images of accountants. Think David Schwimmer.
• Freudian: The language and imagery surrounding the issue—drills penetrating the earth's crust in search of gushers—tap into deep-seated subconscious desires. A gas-tax holiday? Not so much.
Like The Daily Beast on Facebook and follow us on Twitter for updates all day long.
Daniel Gross is one of the most widely read financial and economic writers working today. He is a senior editor at Newsweek, where he writes the "Contrary Indicator" column. He writes the twice-weekly "Moneybox" column for Slate, which also appears on Newsweek.com.
Before joining Newsweek in the spring of 2007, Mr. Gross wrote the "Economic View" column in the New York Times, was a contributing writer to New York, and contributed regularly to magazines such as Fortune and Wired. From 1998-2007, Gross served as the editor of STERNBusiness, a semi-annual academic magazine on economics and management published by the New York University Stern School of Business.
A native of East Lansing, Michigan, Mr. Gross graduated from Cornell University in 1989, with degrees in government and history, and holds an A.M. in American history from Harvard University (1991). He worked as a reporter at The New Republic and Bloomberg News, and has contributed hundreds of features, news articles, book reviews and opinion pieces to over 60 magazines and newspapers. Areas of expertise include: economic and tax policy, the links between business and politics, the rise of the investor class, the culture of Wall Street, and business history.
He is the author of four books: "Forbes Greatest Business Stories of All Time" (Wiley, 1996), which was a New York Times Business bestseller and a finalist for the Financial Times "Lex" award, given to the best business history book of 1996. Translations have been published in Spanish, German, Czech, Polish, Portuguese, Bulgarian, Chinese, Turkish, and Japanese; "Bull Run: Wall Street, the Democrats, and the New Politics of Personal Finance" (PublicAffairs, 2000); "The Generations of Corning: The Life and Times of an American Company," co-authored with Davis Dyer, (Oxford University Press, 20010; and "Pop! Why Bubbles Are Great for the Economy," (HarperCollins, May 2007).
Mr. Gross appears frequently in the media. A regular guest on CNBC, MSNBC, and National Public Radio, he has also appeared on CNN, Fox News Channel, The Newshour with Jim Lehrer, Bloomberg Television, C-SPAN, BBC, and Reuters TV, and on more than 50 radio programs and talk shows.
Mr. Gross lives in Westport, Conn., with his wife and two children.
For inquiries, please contact The Daily Beast at editorial@thedailybeast.com.
Comments