Posted by
Brian John Murphy on Wednesday, August 06, 2008 12:00:00 AM
Today a shipment of toys is leaving a warehouse in
California. In the retail world
preparations for the Christmas season are well under way. Toys at this
warehouse that have made the long trip from factories in China are about to go
on the final leg of their journeys, to retailers all over the western United
States. Freight companies are moving them by the case, the palette and the
trailer-load.
And the freight
company taking today’s shipment to market is charging 73 percent of the normal
hauling fee as a surtax to pay for fuel, which has gone through the roof.
This time last
year, west coast diesel averaged about $1.58 a gallon and the fuel surcharge
that UPS applied was equal to about 11.80% of the volume or truckload freight
hauling charge for the shipment. Now west coast diesel is at $4.66, an increase
of $3.07 a gallon, and UPS’s fuel surcharge at that price is 75.40 percent.
That is going to
add a lot to the price of toys... because someone has to pay for that diesel
fuel. The manufacturer is shelling out more for the shipping, of course, but
those costs will have to show up in the wholesale price the toy retailer pays.
He or she will have to pass that along to the consumer.
And what the
consumer is going to do is pass along the price increase, in the form of fewer
or less expensive toys, to his children on Christmas morning. Since everything
retailers sell has to be shipped, that means everything else that people buy at
Christmas will be affected, from clothes and food to fuel and travel.
Oil is the
foundation of the entire economy. We use it for fuel and lubricant and we make
plastics, pharmaceuticals, fabric and a score other useful and necessary things
from it. Not only is there no Christmas, there is no daily life without it.
Speaker of the
House Nancy Pelosi doesn’t get this. She doesn’t get that U.S. wells are drying
up and that the undeveloped leases are not likely to produce oil. She doesn’t
know that just to replace existing oil stocks, we have to resume
exploration and drilling on the Outer Continental Shelf. She does not
understand what you and I are going through, trying to pay heating bills,
electricity bills, buying groceries, filling the gas tank –because she is a
rich and powerful person who does not have to do those things herself.
Does anyone
seriously believe that the fashionable and elegantly coiffed Speaker of the
United States House of Representatives, Nancy Pelosi, sits at her
kitchen table late at night, bills spread out, her head in her hands, wondering
how she is going to pay the light bill? Does she have to make the choice
between sweltering in the heat without air conditioning or gassing up her car
to get to work? Does she have to make the humiliating decision to ignore a bill
this month, so she will have enough cash left over from her paycheck to buy
groceries for her kids?
Pelosi is the
classic example of a rich liberal who feels free to prescribe social policies for all us
lesser beings... causing us real hardship, because she is a superior individual,
who knows better than we do what is in our own best interests.
Unalterably,
Pelosi refuses to allow a house vote on new drilling because, as she told The
Politico, “I am trying to save the planet; I am trying to save the planet!”
How grandiose a purpose, how noble a mission! Meanwhile people who do not enjoy
the pay and perks of Speaker of the House are going to do without this
Christmas. They are starting to do without right now, in fact.
Speaker
Pelosi had been telling her fellow congressional Democrats… that if they want to publicly support
drilling, in order to get re-elected, that she will permit them to blame
her for not letting drilling come to a House vote (The Politico, August
5, 2008).
What a cynical
exercise on the part of the Speaker. She fully believes that after November,
with a Democratic Congress and Obama in the White House, all the political
pressure to allow drilling will be off and she can get down to her real agenda,
which is global warming. That will mean either a carbon tax (and higher energy
prices) or carbon rationing (restrictions on the use of energy). This would
install the government in every home as a decision maker: Fuel for the car or heat for February?
Lights on after 8 or an early bedtime? This is a nightmare.