Posted by
CPT on Sunday, March 09, 2008 2:39:51 PM
People and particularly the media and politicians want to rant about oil and the *evil big oil* corporations. The sheople eat it up without looking at facts about "Big Oil". They also don't realize that every contributing factor to the rise in gas prices have simple solutions. Simple solutions that the collectivist elites and politicians and *activists* will do anything to stop.
The economics are simple. When a product is in increased demand, the price can go up, depending on supply. The price will ALWAYS go up when supply (increasing or not) doesn't match demand. No amount of government intervention or taxing of the suppliers will change this. No artificial subsidization or promotion of alternative fuels will change this. The artificial supports actually contribute to the price increases.
Why doesn't supply of gasoline and diesel fuel keep up with demand in our country?
- We don't have enough refining capacity and leftist collectivists forbid, hinder and block any attempts to change that shortage
- We don't exploit our own oil resources sufficiently and leftist collectivists forbid, hinder and block any attempts to change that.
- Government sees fuel as a cash cow and continually raises taxes on the product and leftist collectivists never want to reduce or eliminate any existing confiscation of the citizens' monies.
A favorite political line is "dependence on foriegn oil". That dependence won't be alleviated by government mandated *solutions* but by increasing our domestic supply and refining capacity. Finally, the media will have the sheople bemoan the dependence on Middle East oil. 15% or less of the oil processed and used in the U.S. are from Middle East sources.
Economic Freedom not Government policies are the answer to high gas prices and shortages in supply.
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