Yesterday, Secretary of Energy Chu was asked by Representative Alan Nunnelee (R-Miss.) if it’s his “overall goal to get our price” of gasoline lower. Chu responded, “No, the overall goal is to decrease our dependency on oil, to build and strengthen our economy.”
Chu’s response should be no surprise. In 2008, he stated, “Somehow we have to figure out how to boost the price of gasoline to the levels in Europe.” (Wall Street Journal)
Who are most impacted by higher gas prices? The middle class and small businesses are the victims because higher gas prices increase costs for them. Since we depended upon our cars so much for daily transportation, the middle class must spend more of their earnings or savings to drive their cars. The same thing occurs with small businesses. When goods are delivered to their stores, the bill for the goods delivered includes the rise in gas prices. So, they in turn, because of their small profit margins, must raise their prices also. And we middle class people have no choice but to pay the extra cost.
Why isn’t the Obama Administration interested in bringing down the cost of gas containing higher energy costs? It is the president’s push for alternative energy.
Look at the evidence in what the White House has done:
1. cut oil drilling leases by 66%.
2. blocked the construction of the Keystone XL pipeline.
3. funded the failed Solyndra solar plant.
4. subsidized the purchase of high-cost electric cars like the Chevy Volt and Karma sports car.
It is a matter of supply and demand. Although oil production is up, the president refuses to increase federal oil reserves in sufficient quantity to drive prices back down. Off shore drilling and the completion of the Keystone XL pipeline would also help to lower prices. None of these steps is being contemplated by the Obama Administration because higher oil prices help his campaign for alternative energy.
Who pays for Obama’s alternative energy plan? We do!