<!-Quote-!>Quote:That last part is quite silly Scarlet. Spilling milk costs at worst some paper towels, this oil disaster has already cost the lives of both humans and MANY MANY animals. Then the job losses, environments destroyed and the cost of cleaning it up. Comparing the worst man made disaster in U.S. history to spilling milk is actually pretty disturbing.<!-/Quote-!>
Ultimately, there is little difference other than scale. If I spill a glass of milk on someone's rug, I'm spilling 8 oz and it might be cleaned with a paper towel or it might need steam cleaning. Multiply that by millions, possibly billions, and you get a very similar situation. Imagine millions of gallons of spilled milk spoiling in the streets of a major city... imagine the lost revenue and the cost of cleaning it up.
Most of the job losses were artificial and created by poor decision making anyway. The current administration's moratorium on offshore drilling probably cost more than any direct effect of the spill. Further, containment efforts were/are being hampered by federal interference and generally blame-game politics.
My point is this: all that needs to be done is to clean the spill. There isn't some grand societal lesson about oil use to be learned other than to simply be careful and avoid spilling. Everyone can agree that oil spills are undesirable without exception, even oil companies. Granted, BP is liable to pay for the clean-up since they made the spill, just as I would need to steam clean someone's very nice rug if I spilled milk on it. Once they've payed to clean everything up and compensated everyone for their
measurable, monetary losses, then the case should be closed. What more is left?
<!-Quote-!>Quote:Oil is like milk in that humans do not need either, it is unlike milk in that it is a finite resource which will eventually run out. The oil we drill here is traded on the world market just like all of the oil in the world and if we were to stop drilling completely it may cause a rise in gas prices of 5 cents, assuming that OPEC doesn't just go ahead and up their production to keep prices exactly where they are, I wouldn't exactly call that a catastrophic economic loss such as what we will see from this oil disaster.
If you're going to make economics arguments be honest about it, recognize the true supply of world oil is controlled by a cartel (OPEC) which is essentially capable of setting the prices by varying the supply they allow to market. Our oil production is fairly insignificant and hardly worth the risk unless you want to say that we should not trade our oil on the world market and it should stay in the United States which I don't think any right minded economist would agree with. WE DO NOT HAVE A COMPARATIVE ADVANTAGE IN THE PRODUCTION OF OIL, and we use 20% of the oil with only 2% of the reserves, so we need to decide to follow the laws of economics, continue to use oil as we do and stop producing because we do not have a comparative advantage (although pretty much any economist will tell you that we ignore the spillover costs of such use) or we decide to develop a comparative advantage in another form of energy production and in order to do so we stop subsidizing oil and instead tax it to equal out the spillover costs (even if you don't believe in climate change, pollution in general is a pretty large spillover cost of oil/coal consumption in addition to environmental destruction and potential environmental disaster).<!-/Quote-!>
You've made some assumptions that are erroneous.
* First, that I believe we should subsidize oil. I'm against government subsidization.
* Second, that comparative advantage is important. If someone can profit off drilling oil here and is interested in drilling oil here, why should the fact that someone else is doing it elsewhere at greater efficiency matter? If there was nothing to be gained, nobody would be drilling the oil! It's their money, their business, and their risk... market forces will prove whether or not their decision was worthwhile.
* Third, that the small influence on the overall price of oil matters. Seriously, please explain why this matters. Back to milk, I'm sure any given independent dairy farmer has a small influence on the overall price of oil, is that any reason this farmer should stop producing milk?
<!-Quote-!>Quote:One of the failings of economics is an inability to put a price on the environment. What is the cost to society to have mountain tops blown off to mine coal or to have beaches unusable due to being flooded with oil? It is hard to quantify these things, I'm not talking about actual costs such as x number of beach tickets, vending etc, but instead the benefit that we as a society receive from having clean beaches or the beauty of an undamaged mountain range. There is value in those things and until economics can find a way to value them it will always be an imperfect science which we have to take into account.<!-/Quote-!>
The environment is only worth the value that can be attached to it, just as oil is only worth the value that can be attached to it. What benefit do we as a society receive from clean beaches and undamaged mountain ranges? Tourism is monetary and measurable so this is not included. What benefit do we receive that is more valuable than money or property rights? If someone (or some group) loves the beauty of undamaged mountain ranges, let them buy the land to keep those mountain ranges undamaged. This is the direct test of value assessment. If nobody is willing to put their own money on the line, then it is simply not worth it.
<!-Quote-!>Quote:This is why you get NIMBY, you're perfectly fine with oil drilling because overall you think it makes economic sense, drop a rig in your backyard or a nuclear plant and all the sudden you might have an issue.<!-/Quote-!>
While it's not literally in my back yard, I supported the oil drilling in the hills less than 5 minutes away from me by car. I'm not sure what your point is. If there were oil in my backyard, I'd be perfectly fine with selling the rights for someone to drop a rig. If someone put up a nuclear plant nearby, I'd probably apply for a job (if I were qualified)... once again, I'm really not understanding you. You've falsely assumed that I get NIMBY.