Wednesday, March 26, 2014

North Dakota's Oil Boom Defies Liberalism

By Douglas V. Gibbs

Ah, the wonders of the free market.  It is amazing how, when individuals are allowed to seek success in a free market, how prosperous their endeavors can be for economies.  Liberal policies of heavy regulation and controls are real efficient at screwing up any opportunity for prosperity.  But, sometimes, despite the Left's attempt to hold individual ingenuity and innovation back, Americans find a way to buck the system, and prosper anyhow.

North Dakota, and the State's embrace of Fracking (The episode of Constitution Radio with Douglas V. Gibbs on March 22, 2014 focused on the advantages of Fracking in an interview with Karen Moreau), has let the innovative beast of prosperity and individualism run amok, and the result is incredible success. . . for all.

Economically, North Dakota has become the envy of the nation.  People have flocked to the northern State that bumps up against the Canadian border, seeking wealth, and opportunity.  Small towns have become bustling cities, and the "oil rich" State now leads the nation in personal income growth, not just for those in the State working in the oil industry, but for everyone else as well.

Amazing what a little "in your face, liberals, we are going to pursue domestic drilling, anyway" attitude can do for a State.

Nationally, personal income growth slowed from 4.2 percent in 2012 to 2.6 percent in 2013, but North Dakota nearly tripled the national rate at 7.6 percent. The state also was double the second rate state, Utah, which saw 4 percent growth.

Higher incomes also means more tax money for the State.  The only danger is that the North Dakota political scene may be ripe for liberal left progressives to grab hold, and rather than return the money to the people through a reduction in tax rates, as Scott Walker offered in Wisconsin two States to the East, the statists will demand that North Dakota pay its fair share, and spread the wealth around, or even worse, turn the economically sound State into a welfare state, so as to attract those that are "less fortunate."  Currently, North Dakota is among the States with the lowest tax burden.  We'll see if success poisons the politicians.

Well, there's that, or the environmentalists finally convincing someone that the oil boom may put some no-see-em insect, miniature fish, or rare rodent in danger; or even worse, that the land needs to be abandoned by humanity for the purpose of sustainable development.  The EPA is already in the process of a massive land-grab, giving itself the authority of regulatory control over temporary wetlands and waterways.  The proposal means the agency could use their new found regulatory power to exert control over seasonal ponds, streams and ditches, including those on private property.  So if you get your water from a well on a creek that has water in it most of the year, and it dries up for a few weeks out of the year, the EPA thinks it can dictate to you how you use that water, if you are allowed to use that water, and then will probably force you into a "redistribution of the wealth" scenario where your creek is no longer your creek.

There are no express powers granted to the federal government regarding the environment in the Constitution for a reason.  Such authorities, of which the federal government has illegally granted to itself, are detrimental to the principles of property rights, individualism, and the free market - which means in the long run, these powers that have been illegally seized by the federal government are a danger to our freedom as Americans.

-- Political Pistachio Conservative News and Commentary



North Dakota - Tax Foundation

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