This morning, President Bush outlined his domestic legacy during a forum at the American Enterprise Institute. For more than two centuries, much of America's power and influence abroad has come from its domestic strength, specifically the vibrancy of its economy and the respect other countries had for its values. The Bush administration leaves a legacy at home that has greatly weakened US economic competitiveness and moral authority abroad.
Today, Governor Palin is giving a speech on energy policy and Iran, but her policy and that of John McCain’s are only likely to increase gas prices and lead to confrontation. President Bush’s reckless rhetoric on Iran has already created a security premium that energy analysts believe accounts for 10-30% of the price of oil. McCain’s policies and willingness to sing about bombing Iran promise more of the same. Moreover, McCain plans to continue Bush’s failed policies of refusing to talk to Iran and exclusively focusing on economic and military pressure.
While McCain and Obama have both presented plans for reducing energy prices it is important to remember that foreign policy has a major impact on world oil prices as well. John McCain’s bellicose approach towards both Iran and Russia, two of the world’s largest producers, will keep energy prices high.