Apr
16
Inequality and Fracking – Josh Solomowitz
April 16, 2015 | Leave a Comment
Does fracking have benefits? Yes, it’s a better alternative than drilling for oil. There’s no doubt about that. But it’s only a temporary solution. There are still CO2 emissions and other negative externalities given off. Run-off water damages the environment, animals, and even humans. The video we saw in class showed us firsthand the effects on humans. Yet, it’s still being pushed in the U.S. and lobbied to Congress. I find it preposterous that Cheney was allowed to get away with so much when he was in power. The oil and natural gas industry (not to mention his own company) flourished under his rule. He made sure certain policies were passed, hidden inside laws, that gave the shale oil industry certain benefits.
Today, fracking is wrecking havoc here because the U.S. is one of the largest exporters of natural gas. In addition, fracking leads to less dependence on the Middle East for oil. Domestic production results in lower prices. The AEI article avidly pointed out that fracking boosted the economy and provided much-needed jobs. It has made many millionaires in the process. But it has also has widened the income inequality gap too. The author of this piece thinks that the small price of a little more income inequality is worth it. I’m sure he wasn’t taking into account how high it is already – the Gini coefficient (measures economic inequality) is one of the highest on the planet.
It’s very important to have incentives for entrepreneurs. If there are none, there will be a lack of motivation, and with that, a lack in innovation. I think this is what’s happening now with renewables. Policy isn’t being passed for renewable (such as tax breaks) and this industry is suffering. Entrepreneurs don’t have much motivation to innovate here. The fracking industry however, proved rewards and riches, which attracted many businesspeople.
It hurt me a little bit to read in the article “…future revolutionary, breakthrough technologies like hydraulic fracturing and horizontal drilling.” This technology is not revolutionary – that would be renewable energy. Renewable energy is much more cost effective, creates energy without giving off emissions, and even creates surplus energy. It is a long term solution to the issue at hand, while fracking is barely a “temporary adjustment.” Fracking is by no means sustainable.
Sandy was an atrocity – it seriously pointed out many of the faults in our infrastructure and urban planning. Houses should not be built that close to the water. Mechanisms need to be put in place to prevent flooding. Electrical lines need to be built underground to hinder wide-scale power outages. But the most important was it showed us that we need some fixing before the next storm (no pun intended) hits us. A great way to do this is through policy. Policy is the best way to enforce the law – it can put a focus on, say, renewable energy and updating our infrastructure for example. It can also help decrease the income inequality. But with many politicians getting funding from the rich guys, this will be a huge obstacle to overcome.
