High Gasoline Prices Keep Lid on Consumer Spending, Recovery
The price of gasoline has reached $4 per gallon again in some U.S. cities, hurting consumers and businesses, especially those who are poor and middle class. High prices are containing the U.S. and world economy.
Before the onset of the war in Iraq, oil was $25/barrel, higher than normal, because of the strong economy up until 2000, and then September 11.
Not only was the Iraq War long and bloody, but speculators found opportunities to invest in petroleum due to the declining value of the U.S. Dollar; occasional outbursts of terrorism globally; or, even a hurricane.
The government; media; and analysts have only fed the speculation by projecting higher prices and no relief in sight.
High petroleum and gasoline prices have led to a spike in everything you buy at the supermarket. Overall inflation is under control, in many cases because businesses can’t charge more, but the inflation in food and energy, including gasoline, has been going on far too long, hurting everyone, including airlines; retail; and food services.
The Keystone XL pipeline must be built, the only question is its location to minimize environmental risks. It would also make us less dependent on oil from the Middle East.
The tax credit petroleum firms receive ought to be targeted towards drilling and building new refineries to force them to increase supplies more than necessary, in order to lower prices.
A King Dollar, achieved through fiscal discipline; deficit reduction; and a strong economy, would also reduce prices.
We must expand usage of cheap natural gas, as well as research and develop other energy sources, to diversify our energy market; create jobs; and keep energy costs down.
Lastly, ethanol shouldn’t be produced from food, but other sources, in order to lessen food prices, too!
Gasoline and food must be inexpensive and abundant, as they were in the booming Eighties and Nineties, our economy needs it!