“Government’s view of the economy could be summed up in a few short phrases: If it moves, tax it. If it keeps moving, regulate it. And if it stops moving, subsidize it.” - Ronald Reagan
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On the front page of today’s Morning Call was an article on high electric bills and mudslinging between my Republocrat competition. (I was not contacted to comment.) As Pennsylvania’s price controls on the cost of electricity phase out, Pennsylvania’s electricity bills went up by about 30% in 2010. Meanwhile, PP&L, a major provider in the area, is considering spending $20 million over the next 10 years to have a new Major League Soccer stadium in Chester, PA, named after their company for advertising.
Republocrat A blamed Republocrat B for taking a vote to phase out price controls 14 years ago while he was still in PA state congress by stating, “I do think that government can and should play an appropriate role in the marketplace. The question comes down to balance – not too much and not too little.” Of course, Republocrat A did not offer specifics on the “appropriate” market interventions he would undertake.
Only my campaign does not and will never accept corporate PAC or lobbyist donations. 100% of donations to Towne for Congress have come from individuals. The reason for this is principle – how could the citizens of the district trust that I would not sell them out if the campaign receives money from lobbyists and corporations?
Now, both Republocrats did not offer solutions to the high energy costs, but I agree that Dent holds a lot of blame in this matter, but it has nothing to do with a vote taken decades ago.
Congressman Dent has been a HUGE spender during his 6-year career in federal Congress. While headline news may shed little light on his voting record, Dent has ceaselessly approved out-of-control military budgets – as highlighted in “Guns or Health Care?” we spend more than the rest of the world combined, and the War on Terror is only a fraction of the more than >$1 trillion spent on “defense” annually — while our borders remain like sieves. Dent (and the rest of Congress) still spends like a drunk bandit – it’s just not reported objectively. Check out the long list of countries where he approved over $60 billion in foreign military aid last summer, $4.1 billion to subsidize R&D on cars, and $500 million last week to subsidize cybersecurity.
How does this tie in to higher electricity costs? All of the deficit spending is “paid for” by the Federal Reserve, which creates new currency backed by nothing with the printing press. This increase in money supply is what drives prices up — electricity is NOT getting more expensive — the dollar’s purchasing power is being devalued by all the newly printed dollars! Inflation is an insidious, hidden tax that steals from your wallet and bank account slowly over time. Most people are shocked to learn the dollar’s purchasing power is declining by about 8% even in 2009, while supposed “inflation-adjusted” payments, notably Social Security, did not have an increase because the government is fudging the numbers, as demonstrated in my “Sound Money and Jobs” plank and the article “The Real Interest Rate.”
Besides all the government interventions causing 20% unemployment, wages and salaries are obviously not growing faster than 8%, so society is literally being impoverished by the government. If my Republocrat opponents wish to help the people by slashing wasteful government spending, I invite them to start with their $174,000 salary as I have. I will only accept the median household income and donate the remainder to local non-profit hospitals. I will not enroll in the elite health care plan or pension plan that pays up to 80% of their salaries for the rest of their lives. Government is vastly too large and overweight – government jobs pay an average salary of $71,206 while the private sector average salary is only $40,331.
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Now, in terms of fixing the problem, one must understand that firms like PP&L produce electricity and charge for it in order to make a profit. As a firm, they take plenty of risk providing electricity in the first place. Even the stadium advertising is viewed as a profit-loss decision. There is plenty of competition right now – seven (7) companies are offering lower rates, and one is 11% lower than PP&L, Washington Gas Energy Services. If any could significantly undercut PP&L, they would in order to secure the business; many are offering low teaser rates. Consumers can decide if they want to pay less.
Next, citizens have another route available to get another 6% off. In Pennsylvania there is a 6% sales tax on electricity for residences. There is about 5 million households in Pennsylvania, so the taxation stream to Harrisburg is probably several hundred million dollars. While the state government is in horrible shape, so is the economy, but both government spending and tax cuts are the only solution to the financial crisis at present time. Despite ridiculous claims by Republocrat A (Callahan) that casinos are “economic engines,” the less income the government plunders in taxation from the people, the better off we will be.
Besides alternative green energy sources like nuclear energy, both Republocrats fail to mention that Pennsylvania sits on top of the Marcellus Shale Gas formation which, when environmental and technological solutions (the deposit is about 1 mile below ground, and not easy to recover) are found, will likely be sufficient to provide for the nation’s natural gas needs for a decade or more, not to mention provide a tremendous economic boom in our state. While official 2009 estimate is 262 trillion cubic feet recoverable (see Dept. of Energy study, page 33/116). Dr. Timothy Constadine, et. al of Penn State University offers a 2009 estimate of 489 trillion cubic feet. More information about the Marcellus Shale gas can be found from this website.
Now, I am not an energy expert – although I do hold a chemical engineering degree from Lehigh University. However, the district and state already have energy experts and citizens more educated than I, and I am very willing to listen to their ideas and be educated by them. Rather than senselessly sling mud like the Republocrats, I invite the public to attend and make statements and ask questions on energy at my next “Towne Hall” on March 15 at the Bethlehem Township Community Center, 2900 Farmersville Road, from 7-9 PM. You can also leave comments below or email me at towneforcongress@gmail.com with comments or if you would like to speak by phone. I will gladly accept any invitations by local groups to attend a community forum on the electricity problem.
http://towneforcongress.com/economy/jake-towne-replies-to-dent-and-callahan-on-high-electric-bills-1
