Finally there is news that President Obama’s “stimulus” has had some positive effects on our economy. The usually Obama-cheer-leading Associated Press has produced a very deep “news” article boasting the fact that gasoline prices are finally coming down and some predict prices as low as $3.25 per gallon within a month. First I’ll believe and welcome that when I see it. Second there is a rather sinister reason for the recent price drop.
George W. Bush achieved a similar price drop by rescinding a presidential order (his father’s) to open up drilling which eased market fears about events in the Middle East and reduced price speculation. Bush’s action was a supply side action as consumers and investors felt that there would not be any significant interruption of the supply of oil. Obama, being the most brilliant man ever elected president, did Bush one better. He and his czars have actually been constructing road blocks to traditional energy exploration and production in the United States in favor of “renewable” sources. Obama’s action has caused a change in the demand.
You may ask whether folks have just gone out and bought Government Motor’s Chevy Volt, or started walking to work, or maybe just properly inflated their tires. If you thought that you’d be wrong. It seems that the demand has been reduced because the economy is so bad. Here is the AP’s unbelievable headline:
The following excerpt is the article’s third paragraph:
“Economist Philip Verleger equates it to ‘a stimulus program for consumers,’ leaving them more money for clothes, dinners out and movies. Over a year, a 50 cents-per-gallon drop in gasoline prices would add roughly $70 billion to the U.S. economy.”
I guess it is a stimulus for those of us fortunate enough to still have jobs. I would rather, however, not benefit from the destruction of others and to their benefit the AP did acknowledge this later in the story. Perhaps I expect too much from media; no I don’t expect too much I hope for better and am always disappointed. This would have been a great opportunity to provide readers some information about economics and contrast the Bush versus Obama lowering of gasoline prices. Instead the AP filled the article with vacuous quotes from people who, surprise surprise, offered how lower gas prices will benefit them.
Can a Pulitzer Prize be far away for these writers?
Or a Nobel Prize in economics…they seem to give those away to just about anybody.
John Galt [Ayn Rand] summed up my position on the issue;
“I swear, by my life and my love of it, that I will never live for the sake of another man, nor ask another man to live for mine.”