'The American people aren't stupid," thundered President Obama yesterday in Miami, ridiculing Republicans who are blaming him for rising gasoline prices. Let's hope he's right, because not even Forrest Gump could believe the logic of what Mr. Obama is trying to sell.
To wit, that a) gasoline prices are beyond his control, but b) to the extent oil and gas production is rising in America, his energy policies deserve all the credit, and c) higher prices are one more reason to raise taxes on oil and gas drillers while handing even more subsidies to his friends in green energy. Where to begin?
To what extent do you believe President Obama can control gas prices? How important are gas prices to inflation?
5 comments:
I also disagree with the statement that gasoline prices are not in Obama’s control. The article states that there has been a rising share of U.S. produced oil, but Obama has done little to expand it over the years. This seems to be the problem; Obama isn't taking the proper action to even have control of the gasoline prices in the U.S. The replacement of foreign produced oil from Venezuela and other countries could give Obama more control over the gasoline prices. Additionally, Obama could reduce taxes on the gasoline and oil companies and renovate the cap and trade agreement, which would increase the production of gasoline in the U.S.
Many countries have even higher gasoline prices than exist in the United States. If the government invested long-term in public transportation, then the country could slowly move itself away from the dependence on foreign oil. This does not necessarily depend on Obama himself, but a change in the way that our government as a whole approaches energy policies.
I agree that public transportation is a great alternative for America to get away from our oil consumption. When mass transit is offered it seems Americans do not use it and prefer to use the more expensive choice of personal automobiles. However, we have lower prices because of the volume in which America buys oil compared to other countries.
Initiating public transportation system in the US will be very costly (except for some cities) because places to places are already built too far away from each other. Even from the house to the school. I believe the US has a full ability to develop an alternative energy and that will save a lot of $s.
President Obama does not have the ability to dicate price of gas in the open market. He can control factors that can help reduce the price of gas once of which was not approving the gas pipe line from Canada. Its a supply and demand issue, and the more President Obama can add to the supply of oil the less expense oil can become. Clearly the US has been working hard at reducing the demand but with globalization demand has been and will continue to be trending higher. The only effect the President can have is opening up more supply of the Oil for the Global market.
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