"We have met the enemy and they are us." (Pogo) The races for Congress have started in earnest, and I'm afraid that if we continue to elect economic illiterates to Congress, we may look back at $4.15 gasoline as the good old times before it got really expensive. Our fellow voters seem to think that they are sending people to Washington to fix the problem; unfortunately the people we are sending are the problem. The market economy is developing solutions to the rising cost of oil, but our representatives are casting votes that block those solutions. Let me give you an example.
Last week I had a business trip to Germany. There, a good friend took me for a ride in his wife's new car. Wow. What would you think of a car that got 37 mpg, accelerated like a bat out of hell (OK, it can't race Ferraris, but when was the last time you were being tailgated by a Testarossa?). It pulled away very nicely from cars with engines almost twice its size. Oh, yes, and we are not talking about some hybrid with a questionable battery-life expectancy, I'd guess that this car's engine is probably good for 300,000 or 400,000 miles. At the pumps it filled up with the lowest-price fuel. Finally, from an emissions perspective, it rivals the hybrids. Cleaner air, about 35 percent greater fuel economy, a thrill to drive... this is German auto engineering at its finest. This is the free market working. And speaking of the free market, what do you think happens to oil prices if Americans start driving cars that require 35 percent less fuel? But the oil sheiks should not worry; they have Congress on their side.
You see, you shouldn't start pulling out your checkbook to buy one of these cars. The first one may never be imported. The reason is that, believe it or not, that car that I rode in in Germany last week is a diesel. Yes, throw away all your old views of diesels being slow and smelly; this is what can be accomplished with technology and a highly educated workforce. Unfortunately, Congress has cast votes which effectively block the building of new refineries in America. Limited refinery capacity means the existing refineries focus on gasoline and the price of diesel (and home heating oil, same stuff) rises. Diesel is naturally cheaper to refine than gasoline and in Europe that is reflected in a $0.57-per-gallon lower price. Not so in America; here I have seen a 50-cent premium for diesel. Therefore, Congress' votes have the effect of about a $1.07-per-gallon tax on diesel, which may cause this incredible car to be uncompetitive in this market. (By the way, the car is a BMW 330xd with all-wheel drive.)
The ignorance in Congress has been bipartisan. Next time you see former Congressman Bradley or Congresswoman Shea-Porter, you might ask them about their opposition to refineries. Or perhaps filling your gas tank on the way to the polls will trigger your memory. With representatives like this, who needs enemies?
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Doug Newell is a founding member of the Alliance of Derry Taxpayers and a former School Committee candidate. E-mail your thoughts on his column to editor@derrynews.com or mail them to: Derry News, Box 307, Derry, NH 03038-4510.
