Zeuspaul, good points, though I'd qualify a few of them with a slightly different viewpoint. Not all corporations are/were that concerned about the energy prices -- especially some high tech firms who said reliability is far more key to their cost structure (huge losses possible from going off line). It was some of the energy intensive, lower margin businesses like Cement companies who pushed Wilson on the dereg -- they were taking a bigger hit compared to out of state competition with lower energy costs at the time. Gee, aren't they glad they solved the problem through dereg ? - some good it's done them now.
I'd argue that small businesses were among the most at risk when passing along the wholesale gouging prices was proposed. Energy is a much higher proportion of expenses for some small manufacturers, restaurants, etc., and many wouldn't have the inelastic price demand needed to retain their customers, or businesses.
I also agree that Californians can be profligate like anyone else with energy use, but are very responsive when confronted with the problems as through Davis' conservation campaign, which started well before the gamed shortages that peaked in May.
Many, many are conserving out of a shared obligation, not just cost. Even environmentalists support higher energy costs, but only when they're based in reality, not gouging. Of course price can have an impact, but old line economists are way too dogmatic in attributing everything to the price signal. It's their bread and butter, their easy answer. Lots of people are doing what you've stated and more, such as getting power surge strips for TVs, stereos, computers, etc., and keeping them off when not in use. It's worked great for me, it's easy, and I'm not doing it for cost reasons.
When you live in an incredible and beautiful place like California, you realize there are things of greater value than who can make the most money drilling and spilling their way through the national monuments, just so your average suburbanite can live like a king. Take a look at the average per capita consumption of Californians vs. Texans and you'll see what I mean.
Cheney's a fossil from a bygone era. His refusal to just tell the GAO who formed his energy policy is a glaring spotlight on his wrongheaded top down mentality. It's time to stop this payback to his campaign contributors. Let's hope the national energy debate picks up before these self interested tyrants create too much damage. |
