Friday, April 22, 2011
Obama Supports Higher Gas Prices
Obama's Energy Secretary Steven Chu said in the Wall Street Journal, "“Somehow we have to figure out how to boost the price of gasoline to the levels in Europe,”
At the time Chu said that, the average price of gas in Europe was $7-$9 a gallon.
Next time you go to the movies, think about why it cost more to drive there than to buy the tickets. Maybe you should thank the man in the big White House who gets to ride and fly at your expense.
He just ended a 3 day trip using 53,300 gallons at a cost of about $180,000 which we paid for. He gets a free ride and has been getting a free ride.
And these prices were comparable to fall 2005 (threat to refining and importation of oil) and late 2007 (very hot economy and very high demand).
The government has little to do with this, and the pennies they add on local, state, and federal taxes at the pump do not offset the direct and indirect subsidies for gasoline before consumers put it in their cars. All the government would have to do to bring gasoline prices in line with those in Europe is to end these subsidies, which would end our artificially low price of gasoline.
Once that happens, then the consumers would make reality-based transportation decisions taking the true cost of gasoline into account. Though it would be absolute hell on our economy, since we're hooked on the nanny state supporting our gasoline habit.
But the cost of gasoline (and fossil fuels in general) will be going up anyway. all the easy oil is gone. It is slower and more expensive to get at the oil we have access to these days, and that simply isn't going to change.
Price rises are going to outpace both possible economic growth and government intervention simply because of supply and demand.
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