And oil. How many times have we wandered through oil crises? Everyone bought small efficient cars, then went right back to monster SUVs as soon as the most recent crisis fades. This feels different, as our right wing is so hair-trigger angry. This time, we might trade our democratic freedoms for a cheaper tank of gas. A permanent, false “solution” to a predictable recurring problem.
The one "fake price" they never talked about in that podcast was this one. Ezra brought up the fake cost of meat, but the fake cost of oil never came up. Most of the world's oil trades over the ocean on super-tankers. The security for these security tankers not constantly getting robbed by pirates, and oil prices spiking as a result, is because the *US Gov* provides that security on the high seas via the US Navy and US Marine Corps. This essentially amounts to global energy subsidies on oil provided by US taxpayers to the tune of $800B+/year *annually* when you look at what logistics and equipment and personnel it takes to maintain that security for global oil trade--particularly the 40% that travels through the Straits of Hormuz on a daily basis. We pay $800+B/year to secure global oil trade so that inflation is low enough to allow domestic consumers to buy goods cheaply and commute to work so that they can make the asset-holding class's stock portfolio go up a percentage point or two this quarter. That's the rigged price I wish Ezra would have talked about on that podcast.
Does 5th Fleet's budget and resources eclipse that of 6th, 4th, and 3rd? Some parts of the world get more attention than others. Right now, DOD prioritizes the Persian Gulf and 7th Fleet AOR as far as assets and budgets go. There are a lot more threats to global trade in places like the Straits of Hormuz and the Straits of Bab el-Mondeb, and the oil making its way from the Persian Gulf to either Asia, Europe, or the Americas is open to attack among multiple routes toward either of those destinations. DOD protects *all* trade on the ocean--effectively an energy subsidy for globalized trade--not just oil, but it prioritizes the Persian Gulf, the Straits of Bab el-Mondeb, and the East/South China Seas. If the pirates hijack a roll-on roll-off boat anywhere in the world, a USN DDG will be vectored to intercept it generally-speaking--especially if the ship has American hostages on board.
Good point. And the hidden costs, absorbed by the government, explains why our fuel prices have always been higher than the rest of the world. It enabled us to avoid reality, even with regard to the climate crisis.
This is correct. I have spent considerable time in Canada over the last several years (my wife is Canadian and we summer there, usually)... and their energy taxes ARE higher.
There are a LOT of prices in our market that are subsidized (and have been for decades). The most subsidized price is likely the price of oil. A lot of agriculture is also subsidized.
Why do you think so much attention has been paid to the Middle East over the last several decades? Why do you think so many people went into panic mode back in the 80s when OPEC decided to flex their muscles and when the Shah got overthrown. We spend tens/hundreds of billions in tax dollars every year so that people pay a bit less at the pump... because you notice the price of gas more than you notice how much you pay in taxes. It has more direct and immediate impact.
When I was young, it was extremely hard to get credit. Very few people has credit cards or credit accounts. It took some effort to build a record to qualify.
Believe it or not, that was a good thing. It meant that people saved money up to buy things. People paid more attention to prices. People lived more often within their actual means--and they were not in debt.
Easy credit was a bonanza for the financial services industry. It has shifted a lot of wealth out of the lower and middle classes to the upper classes. It is also what makes our consumer culture/economy work despite the loss of a lot of good paying jobs.
Credit helps to mask the essential poverty of many people (until you actually run out of credit, anyway). It turns you into even more of a wage slave--because now you owe money and that paycheck has to keep coming.
Freedom is NOT just a political thing, there is a VERY large economic component to it--and most people are NOT nearly as free as they think they are based upon a reading of the law and the Constitution.
In my opinion, the wealthy and corporations are just as much of a danger, if not more, to freedom and liberty as the government is--we have just be trained NOT to see it that way.
1000% Shit, we even subsidize the denial of climate change. Ever see how much money FEMA gives to people to rebuild properties that got wrecked by hurricanes on a coast that's going underwater? All of New Orleans is effectively subsidized by FEMA and the Army Corps of Engineers. FEMA shells out money for people living in flood zones with artificially-lowered homeowners insurance because the gov will come in and pay off the damages. Home owners insurance--especially on the SE coastline--ought to be MUCH higher than they currently are and property values there should be much lower based on the inherent and growing risk.
I live not too far outside of Las Vegas. The only reason that Vegas is the size it is is because of Hoover Dam. Local conditions otherwise would not support a large city in the middle of a desert, not close to an ocean.
Too bad that when they figured the water allotments from the dam that they were in the midst of a wet cycle and they came up with unsustainable numbers. California agriculture is going to be hurting at some point, too, as a lot of water goes to California. The reservoir is slowly emptying out. Lately they have started to find things and bodies that people dumped out there to hide them, the water has gotten so low.
And oil. How many times have we wandered through oil crises? Everyone bought small efficient cars, then went right back to monster SUVs as soon as the most recent crisis fades. This feels different, as our right wing is so hair-trigger angry. This time, we might trade our democratic freedoms for a cheaper tank of gas. A permanent, false “solution” to a predictable recurring problem.
Reminds me of Esau in the book of Genesis, who sold his birthright for a bowl of stew.
The one "fake price" they never talked about in that podcast was this one. Ezra brought up the fake cost of meat, but the fake cost of oil never came up. Most of the world's oil trades over the ocean on super-tankers. The security for these security tankers not constantly getting robbed by pirates, and oil prices spiking as a result, is because the *US Gov* provides that security on the high seas via the US Navy and US Marine Corps. This essentially amounts to global energy subsidies on oil provided by US taxpayers to the tune of $800B+/year *annually* when you look at what logistics and equipment and personnel it takes to maintain that security for global oil trade--particularly the 40% that travels through the Straits of Hormuz on a daily basis. We pay $800+B/year to secure global oil trade so that inflation is low enough to allow domestic consumers to buy goods cheaply and commute to work so that they can make the asset-holding class's stock portfolio go up a percentage point or two this quarter. That's the rigged price I wish Ezra would have talked about on that podcast.
Okay, but how about all the other commodities that moved around the world by ship. Does the Navy and Marine Corp provide their security as well?
Does 5th Fleet's budget and resources eclipse that of 6th, 4th, and 3rd? Some parts of the world get more attention than others. Right now, DOD prioritizes the Persian Gulf and 7th Fleet AOR as far as assets and budgets go. There are a lot more threats to global trade in places like the Straits of Hormuz and the Straits of Bab el-Mondeb, and the oil making its way from the Persian Gulf to either Asia, Europe, or the Americas is open to attack among multiple routes toward either of those destinations. DOD protects *all* trade on the ocean--effectively an energy subsidy for globalized trade--not just oil, but it prioritizes the Persian Gulf, the Straits of Bab el-Mondeb, and the East/South China Seas. If the pirates hijack a roll-on roll-off boat anywhere in the world, a USN DDG will be vectored to intercept it generally-speaking--especially if the ship has American hostages on board.
Good point. And the hidden costs, absorbed by the government, explains why our fuel prices have always been higher than the rest of the world. It enabled us to avoid reality, even with regard to the climate crisis.
Historically, our fuel prices have typically been LOWER than our peer countries. Gas stations around the world sell by the liter, not the gallon.
This is correct. I have spent considerable time in Canada over the last several years (my wife is Canadian and we summer there, usually)... and their energy taxes ARE higher.
There are a LOT of prices in our market that are subsidized (and have been for decades). The most subsidized price is likely the price of oil. A lot of agriculture is also subsidized.
Why do you think so much attention has been paid to the Middle East over the last several decades? Why do you think so many people went into panic mode back in the 80s when OPEC decided to flex their muscles and when the Shah got overthrown. We spend tens/hundreds of billions in tax dollars every year so that people pay a bit less at the pump... because you notice the price of gas more than you notice how much you pay in taxes. It has more direct and immediate impact.
When I was young, it was extremely hard to get credit. Very few people has credit cards or credit accounts. It took some effort to build a record to qualify.
Believe it or not, that was a good thing. It meant that people saved money up to buy things. People paid more attention to prices. People lived more often within their actual means--and they were not in debt.
Easy credit was a bonanza for the financial services industry. It has shifted a lot of wealth out of the lower and middle classes to the upper classes. It is also what makes our consumer culture/economy work despite the loss of a lot of good paying jobs.
Credit helps to mask the essential poverty of many people (until you actually run out of credit, anyway). It turns you into even more of a wage slave--because now you owe money and that paycheck has to keep coming.
Freedom is NOT just a political thing, there is a VERY large economic component to it--and most people are NOT nearly as free as they think they are based upon a reading of the law and the Constitution.
In my opinion, the wealthy and corporations are just as much of a danger, if not more, to freedom and liberty as the government is--we have just be trained NOT to see it that way.
1000% Shit, we even subsidize the denial of climate change. Ever see how much money FEMA gives to people to rebuild properties that got wrecked by hurricanes on a coast that's going underwater? All of New Orleans is effectively subsidized by FEMA and the Army Corps of Engineers. FEMA shells out money for people living in flood zones with artificially-lowered homeowners insurance because the gov will come in and pay off the damages. Home owners insurance--especially on the SE coastline--ought to be MUCH higher than they currently are and property values there should be much lower based on the inherent and growing risk.
I live not too far outside of Las Vegas. The only reason that Vegas is the size it is is because of Hoover Dam. Local conditions otherwise would not support a large city in the middle of a desert, not close to an ocean.
Too bad that when they figured the water allotments from the dam that they were in the midst of a wet cycle and they came up with unsustainable numbers. California agriculture is going to be hurting at some point, too, as a lot of water goes to California. The reservoir is slowly emptying out. Lately they have started to find things and bodies that people dumped out there to hide them, the water has gotten so low.
And their gas taxes are higher, if I'm remembering correctly.