Tuesday, April 17, 2012

Gas Prices

As everyone has probably noticed, gas prices have been on the rise for some time now. Conservatives like to point to this and say it's Obama's fault, which is patently false. The President has very little control over gas prices. However, in the interest of trying to bring down the costs, Obama has decided he needs to act.

As you might expect, his solution to high gas prices is striking a chord with Conservatives, who see it as more red meat to liven up their base. Obama's solution is to increase oversight in the oil markets to reduce possible price gouging. This, of course, is the exact opposite of what conservatives want, which is more freedom in the oil market. Both sides can't be right, so someone has to be wrong. Which is it?

Well, to be sure, there is probably a lot of speculation and price fixing on the markets that could be cleared up with the proper oversight. People are making obscene amounts of money at all levels of the oil and gas business. However, to say that this alone is what is driving prices might be a bit oversimplified. Doesn't demand have something to do with it too?

Yes it does, but the thing is, the Conservatives' only solution so far is to drill for oil in America. I've posted on this before, and why it is not a feasible solution. The only way to bring prices down is to decrease demand domestically, increase supply globally, stop oil futures, and restore stability to the oil producing regions of the world. Outside of that, there is nothing that will bring the cost of gas down. Conservatives need to pick a different tune to dance to, or they're going to trip over their own faulty logic and fall flat on their faces.

No comments: