Posts Tagged → oil prices
We cannot tax our way to lower gas prices
It’s almost comical if it weren’t so serious: no matter what the issue, Democrats today offer the same solution for all ills: raising taxes “on the rich.”
Of course, they’ll never stop to tell you that to be considered rich, by them, all you need is a two-income family where each spouse makes an average of $45,000, no matter how many or how few kids they have.
The gas price crisis is the latest example of liberals’ one solution fits all approach to life and politics. With the recent $4.00/gallon gas price crisis, instead of embracing domestic drilling, Dems led by House Speaker Nancy Pelosi and Senate Majority Leader Harry Reid both voted to go on vacation rather than act on any measure with real solutions for the problem.
Their solution, other than a couple weeks in Maui following a week in Denver? Raising taxes on domestic oil companies.
OK, other than lining their personal pockets, how exactly does that bring down the price of gas? It doesn’t; in fact, it would skyrocket oil prices by at least another 50 cents. That’s no solution for real, working Americans.
For decades, Democrats have coasted on the false cliche that Republicans are “for the rich” and Dems are “fighting for the little guy.” That’s just not true, and this is the latest example.
Dems are not fighting for “the little guy” by stonewalling domestic drilling; they’re not even proposing to punish the right people with their tax increase. (It’s OPEC, not domestic oil companies, who are setting the world supply and price levels, after all.)
No, they’ll fight for the Sierra Club, Algore’s zittoheads, teachers unions and whoever else comes along. But if they ever till you they’re “for the little guy,” remember that it’s the single mom of two, working two jobs and still unable to make ends meet with fuel prices so high, who’s the sort of “regular Joe or Jane” getting hurt most by $4.00/gallon gas.
Oh, and that whole rationale about domestic drilling not bearing anything fruit for “at least five to seven years?” Well, on the first part, it’s false; but even if it were true, shouldn’t that be even more motivation to begin efforts now?
After all, gas prices have nearly doubled in just under two years; just imagine where they’ll be if we continue sitting on our hands and taking no action for the next “five to seven years.” Democrats shouldn’t even be trusted to sell acne products competently.
Chavez predicts $300/barrel
Reuters is reporting that Venezuelan president Huge Chavez is predicting that if his country has further economic sanctions leveled against it, oil could rocket to $300 per barrel, which would send gas prices as high as $8.00 per gallon, or approximately twice the current market price.
Less talked about is Chavez’s admission that the current prices are the result of a speculative bubble which, if it bursts, could send oil prices crashing back down to as low as $70 per barrel and about $1.85 per gallon at the pump.
Sounds like Hugo’s playing it both ways so he can claim to be correct no matter what happens; but remember, WonderfulPessimist.com isn’t about to be outdone by a South American dictator. You read it here first two months ago: $500 per barrel, $22.50/gallon.
Our rationale? Well, hell, it’s as good and as based in fact as anyone else’s wild-ass guess, whether they live in the Middle East, the Outer Banks, Venezuela or Minnesota!
Drill here, drill now, pay less
California auto insurance may soon be cheaper than a gallon of gas in California if prices keep rising out of control. OPEC, perhaps a bit worried by John McCain’s commitment to increased drilling in the US under the “Drill Here, Drill Now, Pay Less” campaign, has become divided as Saudi Arabia has pledged to increase production by an additional 200,000 barrels a day by July, and up by nearly 3 million barrels per day by the end of 2009.
In spite of these aggressive new commitments, demand continues to outpace supply and refinery capacity, rising at a pace this year of about 1 percent, with production rising by only one-fifth of that pace. Clearly, depending on OPEC is not a winning strategy to guarantee future oil supplies and low prices going forward. Drill here, drill now, pay less.
