Recently, we have experienced another jump in gasoline prices causing outcries among consumers and prompting debates as to what ought to be done about the situation. These outcries and debates beg two questions: How “high” are gas prices? What, if anything, can be done about it?
To read further, check out my editorial with this title found on the right margin of the screen.
To read further, check out my editorial with this title found on the right margin of the screen.
Nice article to a complex issue David and your right there is no magic bullet as the number of factors driving both the supply and demand make oil prices a highly complex economic model. I guess our only hedge is to own stock in an oil company....other interesting facts in Europe the government typically charges a large tax on engines over 2.0 liters as such most cars in Europe are 1.8 liter...not to mention the high tax burden on gas....in both India a China the government pegs the price gas can be sold to keep the cost of energy low to aide in driving their economies....the Indian government is struggling to continue to subsidize the cost of energy while China has no problem
ReplyDeleteThe best option is to drill, drill, drill. But, of course, that is politically impossible. Hence, we are stuck with oil dependency and must pay the price whatever it may be.
ReplyDeleteagreed drilling would increase the supply dropping the price, but we also need to shore up the dollar since oil is traded in dollars and a strong dollar will lower oil pricing....
ReplyDeleteThe dollar goes up and down for a zillion reasons. "Shoring up the dollar" is a temporary, artificial solution that looks to our country's central bank for benefits. This is why we all want government to get bigger (including conservatives), so they will provide for our particular short-term desires.
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