With gas prices on the rise and hovering near $4.00, the big issue of the summer seems to be whether we should drill more oil here in America. Proponents of the plan say it would lead to an increased oil supply, thus driving down costs. Opponents of the plan say that the benefits wouldn’t be felt for a few years, thus it would be better to pursue alternative energy. Frankly, the latter argument is laughably terrible. It’s true that we wouldn’t feel the benefits of more drilling for a while, but unlike alternative energy there is a guarantee that it will pan out. If all your eggs are put in the alternative energy basket, 10 years down the road we might still not have efficient alternative energy, and we would be in an even worse situation with oil not having expanded our capacity during those 10 years.

So when it’s a choice between these two arguments, the best is obviously the former - work to increase the supply, a guarantee, while also working on alternative energy. Alternative energy might pan out in 10 years, it might not - so you best be ready for both situations.

But framing the debate in this way is disingenuous - it assumes the problem is strictly one of oil supply. But it isn’t - just as an increase in oil supply would drive down costs, the fact we are constantly increasing the supply of money is driving down the cost, or buying power, of the dollar. The Federal Government is constantly spending money it does not have, “necessitating” the creation of new money. This new money enters the economy, and gradually reduces the distance a dollar goes.

Taking this little facet into consideration, it doesn’t really matter if alternative energy pans out or not - if the dollar is constantly being devalued through irresponsible government, the dollar will continue to buy less and less. Neither Barack Obama nor John McCain are saying anything about this, and there is little to no reason to think they will.  While McCain talks about vetoing “pork barrel spending,” this pales in comparison to the completely unruly and wasteful spending which occurs from top to bottom in the government. Barack Obama hasn’t even tried to argue he would cut spending - and his programs most certainly would lead to a record increase.

The true question is not whether we should drill, but whether the Federal Government should continue to devalue the dollar, knowing it’s consequences. Should the Federal Government continue to spend money it doesn’t have? One thing is for certain - we know where McCain and Obama stand.

(Photo credit to shyb.)