It's interesting how both political parties blame each other for economic troubles. For over 3 years it has been Bush's fault. Now with oil and gasoline prices riding high, it is the Democrats and Republicans blaming each other.
Who is really to blame for higher gas prices?
- The big oil companies that are doing everything they can to keep oil scarce and the price high;
- Speculators that drive up the price in the short run;
- Foreign conflicts, dictators and cartels -- that have been important in driving up prices particularly in the last two months;
- The Republicans who prevent the development of the clean, domestic sources of energy that are necessary to allow America to free itself from the stranglehold of foreign oil -- all in order to benefit speculators and oil companies.
There is not much truth to point one: oil production on state and private lands have increased by 14% since Obama came into office... but have declined by 11% on Federal lands due to Obama's anti-fossil fuel administration.
There is partial truth to point two: speculators do buy and sell based on anticipated market conditions. When they perceive an improvement in demand, they will buy more contracts and the prices will rise. But they can't rise forever and speculators can get burned in panic selling that allows the price of oil to drop precipitously.
Point three: Iran certainly has been a source of concern in the world's oil markets. But that's another reason to question why Obama has allowed oil production on Federal lands to decline by 11%.
Point four: Obama has shown great willingness to "invest" taxpayer money into unproven and noncompetitive "alternative energy" companies that simply drain money from the government before they go belly up. To succeed as alternatives to oil without significantly damaging the economy, alternatives should produce energy at the same cost or less than fossil fuel sources. Right now that can't be done... even at current oil prices. Until then, "alternative energy" will be the plaything of the wealthy or fanatical... just as large, flat-screen TVs were when 42" models ran about $8,000-10,000. It isn't the stuff of mass consumption by any stretch now... it's the stuff of mass depletion of wealth.
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