Wednesday, May 30, 2007

Supply and Demand

Glen Dean hits the nail on the head with his post about gas prices. I guess it's possible that consolidation of refineries may inflate the price, but the main reason that gasoline continues to go up is supply and demand. He notes some issues that lead to higher prices, including the difficulty of building new refineries. I'm not sure how he feels on the subject, but I'm glad that refineries are hard to build. They are eysores and they pollute. It is a worthwhile trade-off to have fewer refineries and higher prices.

Few issues illuminate the childish nature of American politics better than rising gas prices. Dean advises, "People stop bitching. If you don't want to pay high gas prices, drive less or buy a small car. Get over it." I would second that and add that we should consider, in exchange for cuts in payroll and income taxes, steeper taxes on gasoline. Our consumption of gasoline not only fuels global warming, at least according to crank "scientists"; it also funds dubious regimes from Venezuela to Saudi Arabia to Iran.


Glen said...

Damn. I wrote a whole post that you agree with. Let me re-check that. Just kidding.

Seriously, I understand the pollution thing about not building refineries.

Perhaps we could build them in Mexico. Heh! Better not go there.

One of the easiest ways to stop our dependence on middle eastern oil is to drill in places that we know oil to be, which is in Alaska and the Gulf. Also, we could end the tariff on Brazilian ethanol, which is made from sugar. Also, we could build more nuclear power plants. There are several ways that the left successfully keeps us from reducing our dependence on oil. But during election time, they are the ones demagoguing the gas price issue. Worst of all, the common man lets them get away with it.

I honestly don't understand why more money isn't invested into alternative fuel sources. Maybe if I had money, I would understand. Maybe it is just too risky to take a chance. I dunno.

Eventually, high gas prices will have to affect demand. I guess it just hasn't reached that point yet.

Gene Callahan said...

Clark, that refinery actually looks quite beautiful.