Like so many in our nation, I try to keep up to date on current events. After a while, it seems like all the newscasts are repetitive. It’s almost impossible to avoid stories about Wisconsin protests against the governor, lawmakers crossing state lines to avoid voting, Charlie Sheen out of control and turmoil in the Middle East.
In my mind, I can summarize all of this news with one word. Bizarre. Bizarre on all accounts. Obviously, as a nation we cannot be responsible for what happens beyond our shores. But I often wonder how different things would be domestically, and perhaps even internationally, if we truly had a free market.
Free markets are driven by supply and demand. Those two factors combined with competition are what drive prices. Currently, all eyes are on the gasoline pump. Rising gasoline prices put our tenuous economic recovery in jeopardy.
Many experts believe increased fuel prices could ignite serious inflation. That’s because higher fuel prices can result in higher prices for virtually everything. Plain and simple, inflation decreases your purchasing power. And I don’t know anyone who likes to pay more for things.
In February 2009, there were virtually no complaints about prices at the pump. I reference February 2009 because, at that time, oil was just $33 a barrel. Today, two short years later, the price has tripled.
There are numerous reasons why the price has tripled, but the tension and turmoil in the Middle East has been a primary culprit. If the futures market is any indicator, we could soon see the price of oil exceed $120 per barrel. That’s definitely not a situation that’s good for the economy.
Oil experts and economists estimate that for every $10 increase in the price of oil, it takes $150 billion away from the economy. That would be a monumental financial drain on an already fragile economy.
There has been much discussion about alternative energy sources, including wind and solar to make us less dependent on foreign oil. However, I believe that all of these discussions are missing one major point.
Recent research by Investor’s Business Daily indicates that our nation has an estimated 2 trillion barrels of oil, underground and offshore.
By no means am I a drilling expert, but I can’t help but believe that, if the political handcuffs were removed and oil firms were allowed to develop and drill, the price of oil would be significantly lower.
In addition to lower fuel prices, that would also make us less dependent on an unstable international community. I believe free markets and reasonable regulations could help solve our nation’s many energy issues.
Free markets mean competition. And competition, more often than not, results in better technology and more efficient products.
For example, many oil-drilling firms have the technology to extract oil they couldn’t reach a few years ago. Competition does mean winners and losers, but I believe if we truly want to become less dependent on foreign oil, we must allow our firms access to some of the 2 trillion barrels we have within reach.
I’m confident this can be done in conjunction with maintaining proper stewardship of the environment. Lower fuel prices mean more cash in the pocketbook for you to spend on important things like food, education and retirement.
Source: www.theoaklandpress.com
In my mind, I can summarize all of this news with one word. Bizarre. Bizarre on all accounts. Obviously, as a nation we cannot be responsible for what happens beyond our shores. But I often wonder how different things would be domestically, and perhaps even internationally, if we truly had a free market.
Free markets are driven by supply and demand. Those two factors combined with competition are what drive prices. Currently, all eyes are on the gasoline pump. Rising gasoline prices put our tenuous economic recovery in jeopardy.
Many experts believe increased fuel prices could ignite serious inflation. That’s because higher fuel prices can result in higher prices for virtually everything. Plain and simple, inflation decreases your purchasing power. And I don’t know anyone who likes to pay more for things.
In February 2009, there were virtually no complaints about prices at the pump. I reference February 2009 because, at that time, oil was just $33 a barrel. Today, two short years later, the price has tripled.
There are numerous reasons why the price has tripled, but the tension and turmoil in the Middle East has been a primary culprit. If the futures market is any indicator, we could soon see the price of oil exceed $120 per barrel. That’s definitely not a situation that’s good for the economy.
Oil experts and economists estimate that for every $10 increase in the price of oil, it takes $150 billion away from the economy. That would be a monumental financial drain on an already fragile economy.
There has been much discussion about alternative energy sources, including wind and solar to make us less dependent on foreign oil. However, I believe that all of these discussions are missing one major point.
Recent research by Investor’s Business Daily indicates that our nation has an estimated 2 trillion barrels of oil, underground and offshore.
By no means am I a drilling expert, but I can’t help but believe that, if the political handcuffs were removed and oil firms were allowed to develop and drill, the price of oil would be significantly lower.
In addition to lower fuel prices, that would also make us less dependent on an unstable international community. I believe free markets and reasonable regulations could help solve our nation’s many energy issues.
Free markets mean competition. And competition, more often than not, results in better technology and more efficient products.
For example, many oil-drilling firms have the technology to extract oil they couldn’t reach a few years ago. Competition does mean winners and losers, but I believe if we truly want to become less dependent on foreign oil, we must allow our firms access to some of the 2 trillion barrels we have within reach.
I’m confident this can be done in conjunction with maintaining proper stewardship of the environment. Lower fuel prices mean more cash in the pocketbook for you to spend on important things like food, education and retirement.
Source: www.theoaklandpress.com
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