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Jeb in the News
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Hensarling calls for expanded oil exploration
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By Michael V. Hannigan
As Published in the Malakoff News Friday, June 6, 2008
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Newsflash: Times are tough.
Well, maybe that’s not much of a newsflash. Anyone driving – or walking or riding their bikes – down the street knows the ugly truth: $3.80 per gallon.
"Our energy problems were not created overnight, and they will not be solved overnight," said Congressman Jeb Hensarling during a visit to Henderson County last week. Hensarling stopped at Athens City Hall last Wednesday to discuss the nation’s energy policy and Washington’s role in reducing the cost of fuel.
So just how bad are things? Consider the numbers. In 1990, the average cost of gas was $1.16 per gallon and minimum wage was $3.10 per hour.
That means that in 1990, for one hour of work at minimum wage, a worker could buy a little more than 2.6 gallons of gas.
To have the same buying power in 2008, minimum wage would have to be $9.88 per hour. The minimum wage is currently $5.85 per hour, and going up to $6.55 per hour as of July 24.
So everyone currently making less than $9.88 per hour has less buying power at the pump than a minimum wage worker less than 20 years ago.
"To solve our energy problems, it will take a balanced approach of dealing with both the supply of energy as well as the demand for energy," Hensarling said. "Washington has tried everything but increasing production. If we want prices to come down, we have to increase the supply of American energy. I want to see more signs that read, ‘Made in the U.S.A.’"
Hensarling said he supports expanding American energy exploration in Arctic Alaska and the Outer Continental Shelf, which he said could bring down the price 70 to 90 cents per gallon.
The Congressman said that while alternative and renewable energy sources are part of the solution, that wasn’t enough at this time.
"Unfortunately, while there are many promising technologies out there, none are yet commercially viable," he said, "or they simply cannot produce enough energy to totally displace our reliance on fossil fuels."
While gas prices have risen, so has the gap between the "have" and the "have-nots," according to a nonprofit, nonpartisan research organization.
According to a report released in April by the Center on Budget and Police Priorities, "Low- and middle-income families have reaped few gains since the late 1990s, despite the recent years of economic prosperity. Average income actually fell by 2.5 percent for those in the bottom fifth of the income scale, and rose by just 1.3 percent for those in the middle fifth. Meanwhile, incomes climbed 9 percent for those in the top fifth."
The study, based on inflation-adjusted Census data, says that Texas is one of the states facing the biggest income gaps between the top and bottom fifths of families. The gap in Texas between the richest families and those in the middle is the fifth largest in the nation.
"Before the recent downturn hit, our economy was generating solid income gains. The problem was that high levels of inequality meant these gains failed to reach middle- and low-income families, whose living standards stagnated or even declined," said Jared Bernstein, senior economist at the Economy Policy Institute and co-author of the report. "As we head into an economic downturn, these families are ill-prepared to weather the storm."
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