THERE CAN BE NO DOUBT that our terrorist enemies keenly watched both Hurricane Katrina and Hurricane Rita. One clear lesson they will seize on is the inadequacy of the governmental response to Katrina, which suggests that we’re unprepared to handle the effects of a major terrorist attack. Another clear lesson is the U.S. economy’s vulnerability to high energy prices.

Even a cursory glance through the news reveals the kind of economic damage caused by a disruption to the nation’s energy supply. For example, John Felmy, chief economist and director of statistics at the American Petroleum Institute, predicted to the Milwaukee Journal Sentinel that the combination of high gas prices and record home heating bills would “have a profound impact on consumers” this winter. The worst-case scenario, he stated, was that diminished consumer spending could drive the country into recession. Anticipating the ripple effect that Rita could have on the economy, the Tampa Tribune warned readers to “[e]xpect higher prices for gas, insurance, food, construction supplies–and pretty much anything else, including a gallon of milk or this year’s holiday gifts.”