More Gas Out of DC

I was at the gas station today and found myself once again mentally cursing Obama as I watched the dials frantically spinning.  Fair?  Unfair?  How much does the President have to do with the cost?

In broad strokes, oil prices are set by supply, demand, and futures contracts.  If people believe the price of gas is going to go up, due to reduced supply, increased demand, a war in the gulf, etc., the futures price will increase and vice versa.

On the future supply side, Obama has had an influence on gas prices.  By saying “no” to drilling permits offshore, “no” to drilling on federal lands, and “no” to the Keystone Pipeline, he’s sent a very clear signal about what the government is going to do to future supply (strangle it).  In fact, he’s flat out said that he’s got nothing against the price of gas increasing.  His energy secretary, Steven Chu, wanted higher gas prices to encourage more conservaton… until he saw how politically unpalatable that view was.

So while Obama may not be able to control what happens between Iran and Israel, he isn’t completely helpless when it comes to the price of gas.   His latest response, however, is lame: a new commission to investigate the rising prices.   The answers are already out there.  He just doesn’t like them.



About Mystic Cowgirl

I worked overseas in the aid game for longer than I'd like to admit and learned several important things: 1) Third World countries aren't poor because America is rich. They're impoverished due to socialist governments that provide neither rule of law nor basic infrastructures; 2) These socialist governments redistribute wealth from taxpayers to the government workers. There's no benefit to the poor or downtrodden, and certainly not to the general welfare in terms of infrastructure improvements. 3) America is moving toward the Third World model. Rule of law has been subverted because equality under the law is disappearing as special interests carve out exemptions to regulations and special favors under the law. The redistribution of wealth to government began decades ago -- total compensation for government employees now outpaces salaries in the private sector.
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