Senior economics writer for “The Wall Street Journal,” Stephen Moore, spoke Feb. 7 as part of the American Studies Distinguished Lecture Series. He addressed ways to improve the economy and “How America Can Get Its Mojo Back.”
The main solution to the economic crisis in America he proposed was increasing domestic oil and natural gas production.
“The access we have to natural resources, coal, oil and natural gas is an incredible story of revival and renaissance that a lot of people haven’t caught up on,” Moore said. “I think over the next 10 years, the industry that is going to lead this country out of the economic doldrums we’ve been in is the industry that held us back in the past, which is the energy industry.”
He discussed the discovery of the Bakken shale in North Dakota, which is the largest source of oil found in America in 50 years. Towns near the Bakken shale, such as Williston, N.D., have a negative unemployment rate due to the increase in the oil industry, Moore said.
Due to new technologies such as horizontal drilling and hydraulic fracturing, drillers are able to drill two miles into the ground in any direction to pump oil. Hydraulic fracturing, pushing a mixture of water and chemicals at high speeds through the rock, has made it possible to release the oil and natural gas that has been stored in the shale for millions of years.
“Because of these two new technologies, we have more oil in the state of North Dakota than in Saudi Arabia,” Moore said.
Hydraulic fracturing, or fracking, had its share of criticism as well due to potential environmental concerns, such as contaminated groundwater in areas where hydraulic fracturing occurs.
“To be against hydraulic fracturing is like being against a cure for cancer,” Moore said. “It’s a total game changer, but the left has made it into a sinister procedure. A number of states are starting to outlaw hydraulic fracturing.”
Moore said he believes that within 10 to 12 years, America will be an oil and gas export country instead of an oil and gas import country due to the increased oil production all over the country, including Arkansas.
“What was really interesting to me was what Moore had to say about America becoming energy exporters,” said ASI president junior Jonathan Crews. “I think that fracking is a good thing for us to follow because it can help us become energy independent. I think if we are to stick with fossil fuels, the only way for us to become energy independent is to do something like fracking with the shales or offshore drilling.”
Moore also addressed the increased government spending in the last four years, which increased the federal debt by five trillion dollars.
“Let me put five trillion dollars into perspective; we borrowed more money in four years than in 1776 to 2000 combined,” Moore said. “This is fiscal child abuse. We are putting all of this debt onto future generations to pay back.”
Another way to comprehend one trillion dollars is to consider that LeBron James would have to play 25,000 seasons making 40 million dollars a season to earn one trillion dollars.
“The situation in Washington concerning federal spending looks bleak, but I don’t think Moore really proposed a solution to the problem,” senior Abby Anklam said.
In order to return to the economic prosperity of the 1980s, Moore proposed lowering the tax rate, especially on the wealthy, because they own and invest in small businesses, which create more jobs.
Moore joined “The Wall Street Journal” in 2005 as a member of the editorial board and senior economics writer, focusing on economic issues including budget, tax and monetary policy. Over the years, Moore has served as a senior economist on the Congressional Joint Economic Committee, as a budget expert for the Heritage Foundation and as a senior economics fellow at the Cato Institute.
