Americans need to recognize the contributions the oil and gas industry makes to the U.S. economy, said comedian, commentator and economist Ben Stein, speaking at Oil and Gas Investor’s Energy Capital Conference in June.

"I love you guys," he told attendees. "I love the oil industry: you heat my pool, and I love my pool. You help me get gasoline to drive my car, and I love driving my car. I do it every day."

Stein said he cannot understand why the media and intelligentsia are so negative toward the oil and gas industry, when it powers the entire U.S. economy, creates GDP, and enables Americans to enjoy the elevated lifestyle they have, which is the envy of the world. He told attendees he thinks a bias is there because most reporters work in cubicles and are compensated far less than energy industry employees are paid.

"I truly believe they are jealous of you," he said.

Comedian, commentator and economist Ben Stein speaking at Oil and Gas Investor’s Energy Capital Conference.

Stein's humor came through again and again as he analyzed the state of the U.S. economy. His outlook is optimistic, but he cited many problems to be confronted, such as high government debt, the trade deficit and the worsening quality of the public educational system. And, he was critical of some of the government solutions attempted so far.

"The government had never let a major bank fail in the middle of a financial crisis, but Mr. Paulson and Mr. Bernanke let Lehman Brothers fail in September 2008…and it caused a real catastrophe. Banks just stopped lending…even for the highest-quality borrowers."

But the government rescue package, TARP, which was reviled by some at the time, "was a great idea," he said. By March 2009 the economy had started to show signs of life. "TARP was a huge, huge success. Did the Obama stimulus plan help? Well, it helped pay for teachers and policemen and firemen. Whether or not it was a trillion dollars well spent...it was a great deal for the teachers."

Stein noted that for the right projects, big banks are lending again. "Bonds are selling briskly for lots and lots of things. Will we have a double-dip recession? It is an unlikely situation.

"But people ask me, 'Why do we have such a slow recovery?' The answer is, for the average middle-class consumer, we have a tight-money policy. We have easy money for certain corporations and big projects, but for the ordinary upper and lower-middle class person, he or she is locked out. If you really want to get a bad headache, try to get a mortgage--it is astonishing how bad the situation is, and we are not going have a full-scale recovery with this tight-money policy."

What are the lessons learned since the economy plunged in 2008? First, Stein said, unemployment can still be high two years after a recession. "We are paying Americans a great deal not to work, through unemployment insurance. We subsidize unemployment in this country."

Second, there is a genuine crisis in the level of public debt. "I have never voted for a democrat in my life, but I have to say, I lay a lot of the blame for this on the GOP, which has kept taxes way too low for way too long. We are in an economic never-never land that has never occurred before."

Third, the much-touted free market disappointed. "Conventional wisdom has turned out not to be right. Free markets were supposed to self-regulate and self-correct. It turns out they are not self-correcting or self-regulating at all. Some type of adult supervision is still required."

Fourth, the stimulus idea, that a dollar spent by the government will generate more than a dollar in the economy, has turned out not to be true. "The old supply-side theory also doesn't work. There is no free lunch. The Keynesian model doesn’t work and supply-side doesn’t; there is no free lunch in the bond market or in any market, as far as I can tell."

Little by little, the U.S. will work its way out of these problems, Stein said, but it will take more time than people expect. "Remember, the Great Depression in the 1930s went on for a very, very long time and it was only the advent of World War II that got us out of it. I think unemployment was still as much as 15% in 1941."

Education will help citizens, "but education in this country is in a big, big crisis," said Stein, who has taught for several years at the college level. "Only one quarter of high school seniors is able to do C-level work in college. It's been a discouraging spiral for the 25 years or so that I taught."

In the end, despite these challenges, Stein said he is an optimist because of American ingenuity and freedom. "As my old boss Richard Nixon always said, 'You must always remember, America's best days lie ahead.'"

Contact the author, Leslie Haines, at lhaines@hartenergy.com.