Making the world a cleaner, safer, and yes freer place

One of the great problems with our addiction to is that the money goes to unsavory people. That problem was highlighted on two different stages in the last month.

First, Russia welcomed President Obama warmly on his first trip to Moscow. Think back to a year ago when Russia was invading its neighbor and our ally Georgia. Since then the Russian economy has gone into the tank in large part to collapsing oil prices. As a result Russia is a lot more willing to be accommodating with us and the rest of the world. This will last as long as oil prices are down which in turn will last only until the economy recovers.

Even more striking are the events in Iran. Without high oil prices to prop up the economy the true nature of Ayatollah Khameni’s militant theocracy stands out in sharp relief for all the world to see. Going forward it will be hard for world sanctions to have an effect if oil prices rise back to above $100/barrel and Iran is awash in petrodollars (or euros).

But we can make a difference. We can cut our use of oil and keep down the price if we are willing to tax it. Taxing oil will make America a cleaner safer place. It will also make Iran a freer place.