Obama’s None Solution

Yesterday, March 7, 2012, Obama said this at a trucking company making natural gas fueled trucks. “We need to invest in the technology that will help us use less oil in our cars and our trucks, in our buildings, in our factories. That is the only solution to the challenge because when we start using less that lowers the demand and prices come down.”
The only solution? So Americans must drive less. Is that a solution? No! Only the gullible would accept his premise.
How many Americans can afford to buy a $40,000 Volt car? How many of you are going to give up your gas-powered car? How many trucks will be taken off the roads to convert to natural gas or battery power?
Like it or not our economy depends upon oil. One other solution, which the president failed to mention, is to increase the supply of oil by allowing the Keystone XL pipe line to be built. News agencies are reporting that Canada is negotiating with China to sell them the oil that would have been transported over that pipeline to the United States. The President’s decision to halt the pipeline means that China will compete with the US for the Canadian oil. The competition will increase the demand and drives prices up, not down.
From the same speech, the president said this, “High gas prices are like a tax straight out of your paycheck. And for companies that operate a whole fleet of trucks, the higher cost can make a difference in the profitability of the company.” Very true!
Unfortunately, the president’s solution for higher gas prices is not a solution. It ignores the fact that if prices go down, Americans would drive more and drive the prices up again. His solution is as bad as when he said in 2008 that Americans should keep their tires properly inflated to save gas.
He doesn’t understand the basic laws of supply and demand.

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About camden41

Retired public school administrator Retired history professor: Taught Western Civilization, American Civil War, United States History, Economic History, Ancient & Medieval Foundations, American History Since 1945
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