Just think how many jobs the State of North Dakota has created
America’s dangerous addiction to foreign oil sucked almost half a trillion dollars out of the U.S. economy and shipped it overseas. The recipients? Primarily state-owned oil companies.
Worth noting is the fact that the $434 billion that Americans spent on foreign oil last year equals the total amount of unemployment benefits paid to ALL Americans during the five-year span from 2007 through 2011.
The most recent snapshot - the month of December - reveals that 318 million barrels of petroleum were imported at an average price of $109.49 per barrel. That works out to a cost of $780,678.91 per minute or $34.8 billion for the entire month.
This is what Harold Hamm (CEO of Continental) was referring to when he was commenting on the impact that the Bakken play would have on the US Economy.
He estimated that in just 5-years, the combination of the minerals (mining) tax of 11 1/2% (that would be State & Federal), and the income taxes on every level of employment and consumption that every dollar flowing through the economy entails, would balance the Federal Budget!
He might be right if you consider the savings in entitlement spending that would be greatly reduced if jobs returned to our economy.
Keeping those Billions inside of our borders would not only do that, but it would have the dual affect of starving the Middle East crazies of our money and our troops.
Dollars generated from new wealth like mining or agriculture creates real jobs without inflation, most jobs created by government that doesn't produce new wealth does cause inflation.
It is ironic that what the Left despises the most (oil companies), is what's going to save their precious entitlements and salvage their boy president from his misguided theories of wealth redistribution.
Fortunately for us, the Greens can no longer kill the Bakken Baby, as they missed their chance to do that in the crib back when few people knew what it was and many prominent Democrats did not have money invested in it.
The intangible drilling write-off and the depletion allowance is thought of by the media as a sop to Big Oil, when in fact it generates a tremendous amount of tax revenue vicariously through others working and using the product.
One of these days, even the academics in California might discover the virtues of collecting money out of the ground by producing more from their state instead of buying it from Mexico and Venezuela.
Not trying to beat on you, but does your statement really make sense? "He might be right if you consider the savings in entitlement spending that would be greatly reduced if jobs returned to our economy".
As set out in Barron's this weekend, 36% of the federal budget goes to Medcare and Social Security, which are the two big entitlement programs. But are savings achieved via more jobs in the economy? Isnt that something of a nonsequitur. yes, more funds would be paid in, and there may be a reduced shortfall, but that is not savings. Savings come from cutting the program benefits down or the number of people who receive the benefits. Or am I missing something?