As an Ohio resident I am upset that my electrical rate has gone up at a 5.1% annual rate since 2011. It is not like we have a shortage of electrical power generation or any of its fuels. I did my fair share of improving my carbon footprint but rate increases overwhelmed all of my cost savings from improved insulation and LED light bulbs. The renewable lobby has over promised the cost savings and new jobs for years and the middle class has been stuck with the bill. Last year the Ohio legislature finally said we need to pause the renewable energy mandates and take a close look at why this program has consistently under-performed. Hurray! A group of legislators who actually did their job!
For middle class people whose salaries have been stagnant, the “Green Energy” mandates reminds us of the Affordable Care Act since the only thing worse than my electrical rate increases has been the 11.7% annual increase in my health insurance premiums. For those middle class people who balance their budget on a regular basis we are getting slapped in the face by our “friends” in government trying to help us. If this is helping the middle class, I want less help. Both of these programs share the same management style that encourages government incompetence and cronyism at the expense of the middle class.
Here is an article my favorite podcast, Planet Money, had on Norway Has Advice For Libya. This advice is appropriate for any state that is looking at expanding drilling such as Ohio.
Perhaps, even more amazing is what the Norwegians decided to do with the money they made off the oil. Initially, they decided that the citizens of Norway wouldn’t see any of it. They choose not to spend it on schools, roads or sports stadiums. Instead, in the beginning, they reinvested almost all the money they got back into the developing the oil industry ”” into drilling new wells, doing new explorations and developing new technologies.
Today all that money is in a savings fund called the Government Pension Fund Global, and the Norwegian government only gets to spend the interest that fund makes. The size of the fund right now is about $547 billion dollars.
Tom Blumer wrote a related article on Watchdog.org, Blumer: Kasich’s tax could affect OH job growth. It looks like if Ohio can develop the oil well service business, Ohio unemployment problems in south eastern Ohio could dramatically improve for many years. If Ohio can develop a viable long term industry, Ohio might be able to put together a trust fund like they have in Texas that provides capital improvements on state universities and slows down the growth in college tuition expenses.