You may have heard a lot of grumbling on television news and elsewhere lately about how lower gas prices are going to hurt the economy.
Trust your instincts on this one, though, declining gas prices are all sorts of good for the average person.
It’s only bad for big government and certain people (of all political leanings, but strongly represented on the Left) who benefit from human misery.
It’s kind of a complex situation, but it’s ultimately all about simple issues like how much money and freedom the average person gets to keep vs. the socialist vision of a world dominated by serfs and run by a small government elite.
Contrary to what you may have heard, oil prices have not dropped because President Obama is trying to punish Vladimir Putin by applying sanctions and not buying Russian oil.
Obama doesn’t really have that kind of power, although he’s working on it and is more than happy to let people think he’s the one doing it.
The cause of lower gas prices is a good, old-fashioned oil boom brought about by good, old-fashioned American elbow grease — and a couple of fortunate circumstances.
Mostly, the boom is due to increased fracking by oil companies — a process of extracting oil from shale. You may have heard about fracking in the news because the media and the leftists they represent are “agin it” while environmentalists are trying to blame the practice for tremors and earthquakes around the country and producing all manner of phony studies to try to stop it.
Adding onto the benefits of the fracking boom, the return of some stability to oil-producing countries like Libya (which became unstable mostly due to Obama’s meddling vis-a-vis the “Arab Spring”) has also increased the availability of oil, which had been hovering around $100 a barrel.
Further boosting the oil situation is a decrease in demand in many manufacturing countries like China, due in part to the long-lasting economic doldrums of the U.S. and Europe. It’s almost a rubber band effect where our slow economy has finally dragged down China, where most of our goods seem to be made these days, and now the decrease in foreign manufacturing is rebounding to us in the form of a bigger gas supply, lower prices and ultimately a shot in the arm for American consumers.
State and federal government types are severely worried by lower gas prices because that means they get less tax revenue per gallon.
Normally, this would mean people would drive more, making up at least some of the revenue loss. But remember, the past six years under liberal rule have been all about cutting back consumption and restricting the average American “for the Earth.”
Years of brainwashing has to have an effect, right or wrong, in terms of the environmental conscience of Americans. Plus, the emphasis on hybrid and electric autos means less gas used directly for cars, and lower fuel prices also mean that less can be charged to consumers for electricity, another source of government revenue.
So the main objections of the people who have been whining about lower gas prices being a bad thing really amount to governments worried about having to cut their sacrosanct budgets, and environmentalists worried that people might start buying new SUVs. It’s a liberal’s rock-and-a-hard-place type of situation, with government wanting you to drive more and environmental lobbyists wanting you to drive less.
Being liberals, the go-to solution is to raise taxes, giving rise to double-taxation schemes like charging drivers by the mile. (Because Allah forfend that you should renegotiate a union contract to pay less.) Oregon is already experimenting, and California’s Governor Moonbeam is licking his lips.
For normal people, however, lower gas prices are a very good thing. From the pump to the grocery store, prices across the board will feel a downward pressure. There’s an elasticity built into the economy, so it will take some time for the ripples from lower gas prices to reach their full effect, but they’re already being seen in some common goods, such as the price of milk.
This has some, again mostly liberal, economists screaming to decrease supplies of consumer goods to keep prices high, but that’s not really the way these things work in a down economy. If demand for goods stays the same or increases, consumers will go with the lowest prices and competitors will have to increase supply and lower prices just to stay in business. Market manipulators will face a lot of pressure to become good citizen producers and job creators.
And in the end, more money in your and my pockets means more options, freedom and control over our own lives.
So keep hoping for even cheaper gas.
The moral of this economic tale is, bad for the New World Order elite equals good for all of us.