Wednesday, May 11, 2011
Gas, Black Gold, Texas Tea
Why are gas prices so high? In an economy that is struggling to get back on its feet, it seems strange that one of the most important and basic resources is so expensive. High gas prices not only put a dent in people’s wallets, but also harms the economy. People are less likely to take vacations with gas costing so much. Tourism has decreased greatly and cities and states whose economy depend on tourism are really struggling now. Despite the plight of individuals and communities, gas prices continue to rise and no one in Washington is doing anything. Both parties are strangely silent on this huge problem. Democrats say renewable energy is the solution and Republicans say that America needs to drill in its own territories. However, both sides don’t seem to be trying to do anything to immediately solve the problem. Gas prices are rising for apparently no reason and the gas companies raise prices at the exact same time. This tactic of every gas station raising their prices at the same time is collusion and is illegal. So why aren’t the gas companies being punished for this illegal activity? Oil companies give a large amount of money to both political parties and the politicians don’t want to upset their big financial supporters. I can’t prove this, but it seems to me that if either political party could do something to decrease gas prices, then that party would get huge support from the people in the next election. But, neither party is taking advantage of this opportunity to get votes, which is strange. Another reason why gas is so expensive is that the dollar is worth less and less. OPEC is the major supplier of oil and only accepts dollars as payment. Under the current administration, the government has printed billions of dollars, and therefore decreased the value of the dollar. With the dollar being worth less, OPEC raises prices to maintain profits. The oil isn’t more expensive, but our money doesn’t buy as much as it once did so now we have to spend more of it to get what used to be cheap. I’m not saying President Obama is responsible for high gas prices, but just to give you an idea of how high gas has gotten so fast, gas used to be $1.80 per gallon when Obama first took office. Gas prices have more than doubled in two years and it doesn’t look like it will get better anytime soon.
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The picture says it all, being a commuter, gas prices are a major out of pocket expense for me. I guess I never realized how big of an impact high gas prices are, it is much more than just less driving around.
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