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Hold ⁠t⁠he O⁠i⁠l?

By: The James Madison Institute / June 28, 2010

The James Madison Institute

Blog

June 28, 2010

By Alex Corder, JMI Intern and Florida State University Senior in Economics & Business Management
In an already fragile economy, the tragic explosion that took place on the Deepwater Horizon could not have come at a more difficult time. With unemployment at a dreadful 9.7% and no signs of private sector job growth in the near future, it is safe to say that these are trying times for American citizens. Not only will the current oil leak crisis divert attention away from fixing the strained economy, but it could also lead to more damage, such as additional unemployment, especially in Florida because of the reliance on tourism. But as we move forward, we must understand that the decisions made regarding oil drilling in the Gulf will have lasting implications on our economy.In the aftermath of the oil spill, a 6 month moratorium was placed on drilling in the Gulf to inspect each platform and ensure that they are using safe practices. It is clear that this is an environmental disaster that could have been prevented with improved processes, but we must tread lightly. The drilling platforms provide numerous jobs and bring large amounts of revenue to the economy. It is a tricky situation that must be handled with caution.Last week we saw the first attempt to reverse the moratorium placed by the federal government. Louisiana judge Martin Feldman ruled against the ban, indicating that “it was not adequately justified.” US administration has now appealed, and it will be left to the federal court to decide.