On Wed, Feb 4, 2009 at 12:54 PM, Scott Stroz <[email protected]> wrote:
>
> So, paying for smoking cessation now so we see a payoff in the future is
> good. But drilling offshore now so we see a payoff in the future is bad.  I
> don't get it.
>

It's an issue of opportunity cost. Money put into energy conservation
has a greater return than money put into oil exploration. Money put
into renewable energy sources has a greater return than money put into
non-renewable energy sources. If something goes wrong with off shore
drilling, the consequences really blow goats. If something goes wrong
with switching from incandescent bulbs to compact florescent, well,
I'm not entirely sure how that goes wrong honestly. But I think it
would not be as bad as an oil spill.

I'm not against oil exploration, honestly. As the worldwide supplies
diminish and the larger economies modernize (India, China, etc) oil
stands to be an increasingly valuable commodity. The problem I had
with offshore drilling as proposed is that it was pimped as a solution
to our energy needs and that's just stupid. To the extent that we can
do safe exploration in areas that aren't overly threatened, I think
oil exploration is a worthwhile private endeavor. And it likely holds
some future payoff for the country. It just isn't a solution to the
energy problems our country faces either in the short term or the long
term. We need to become an exporter rather than importer though before
it becomes a useful tool.

As for smoking cessation, the money will be spent now or later. Now,
hopefully it goes to getting people to quit. If they don't quit, then
the money comes out later in terms of health care costs and lost
productivity. Since health care continues to get more expensive and
the productivity of the American worker has been steadily improving it
would seem to make sense to try and spend the money now and defer
future costs and increase future productivity gains.

Judah

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