Now that a gallon of gas cost over $3, the news media is re-running the same news casts on this subject that they did last year. Well, not really but the tilt is the same, their message is the same, for all practical purposes they could re-play last years’ broadcasts on this subject. They continue to belabor the question for the great unwashed; why are gas prices so high?
That question is commonplace among the economically challenged who think supply and demand are obscure theories that contradict reality. They only look to gouging in one way or another. The question that should be posed, and hasn’t been is this; what have we done since last year to increase oil supply? How many new wells were licensed? Where has exploration begun? How many oil refineries have we built? What have we done to supply or demand to cause the price to come down? I like this one best, would we be more secure and would the price of gas be as high as it is today if, ten years ago, we had started drilling and expanding the oil and gas infrastructure ?
The population doing what populations do will increase demand on its own. Births outnumber deaths. We are now over 300 million strong, not counting the 12-20 million illegals. And right now Congress is attempting to slip an immigration bill over on us that will so radically change the demographics and politic of this country that guarantees over 100 million (the families of the 12 million) more Mexicans will be here driving cars.
The evidence of government actions points to a willingness to increase our population (demand) by the stroke of a pen, and absolutely no evidence to increase the oil supply to meet our current demands, let alone the effect (if enacted) this immigration bill will have on demand. How high will it have to go before the left understands economics? Is $6/gallon enough? You pay what you get for.