Monday, May 2, 2011

Gasoline Pains

Gas prices are soaring and the government is back at tossing the potato. Gasoline is nearing $4.00 per gallon. Energy economists are saying that if the gas prices increase even further or even remain at the current levels, then it would become unsustainable and lead directly into another recession.

If this happens, there will be no more money for bailouts or handouts. If the United States heads into a deep recession again, it will become worse than the recent one we have just dug ourselves out of.

Oil prices cause concern for the entire economy when they get to a level this high. Yes, some of it is due to natural disasters occurring in the states. Yes, part of it due to the current conflicts going on in the Middle East and North Africa. But the majority of the problem is due to the increased worldwide demand and the lack of supply. With the world wanting more and more oil, that problem is not going to go away unless we get more oil.

We could get more oil if the government would do something for once and start letting our own country drill our own oil. Unless we get our government to do this, then there is nothing that we can do to get ourselves out of this mess. It is a vicious cycle. Maybe the gas prices are going to go down for a while, but everyone knows that sooner or later they will go back up. Why not create a smart government that thinks ahead and develops a program or something to keep prices down.

Keep our money here by drilling our own oil. That is the ultimate stimulus.