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Tuesday, July 08, 2008

Who Does Obama's Director of Economic Policy Talk To?

Larry Kudlow interviewed Jason Furman yesterday, who is Obama's Director of Economic Policy. There was one interesting tidbit on energy policy when Kudlow asked him whether the prospect of greater oil supply via lifting restrictions on drilling would lower prices.

Kudlow: Did you see Marty Feldstein’s story in the [Wall Street] Journal today? He says if you have the expectation of more drilling as the moratoriums come down, traders would sell oil and prices would fall?

Furman: I saw Marty said that. And most of the energy experts I’ve talked to say the exact opposite. You’re talking at something that – and, and one of those experts by the way is the administration’s own Department of Energy, which doesn’t think this would have very much of an impact on prices, and that impact would be, you know, 10 or 20 years from now.

I would like to know which "experts" Furman talks to. It's pretty scary if Obama's director of economic policy truly believes that an expected increase in supply would actually raise prices. If that's the case, then why aren't home prices going through the roof with all of the excess supply there? It's incomprehensible but then again this is Obaman policy and it is not to be questioned.