Friday, March 2, 2012

Solution to rising gas prices

So, gas prices are at $3.99/gallon -- at least here in Michigan. Woe is us. The question now is what do we (and by we I mean our 'leaders') about it? Does the government take control of the gas companies and force them to lower prices? Or do we allow them the freedom to manipulate the public?

Do we drill for more oil and use it domestically instead of selling it to China and India? Or do we restrict drilling and force Americans to pay higher prices at the pump in order to push alternative energy? Well, the Obama administration and the Department of Energy are doing exactly that.

The website Politico published an article stating the Secretary of Energy Steven Chu is not "working to lower gasoline prices directly", all in an effort to promote energy alternatives like bio fuels and electric cars (Guillen, 2012).

Overall, I have no problem with alternative energy. However, when a government institutes a policy of 'shut up and deal with it', I have something to fuss about.

Allowing gas prices to rise in an economic recession to promote an agenda is political suicide. I don't care what political beliefs you hold, no one wants to pay $5/gallon, which is what some experts say they could hit in the summer.

If you argue otherwise... well, I encourage you to ride your bike to work because you'll go broke driving.

In fact, rising gas prices will create a domino effect everywhere else. For example, delivery companies will need to raise shipping costs in order to make up for the losses paying for diesel. In turn, when retail stores pay more for shipping costs, they must raise prices to prevent a loss of profit. This is evident in rising food prices. Those who are hurt the most are not the businesses, although they will suffer as a result. Consumers, like me and you, suffer. When we suffer, businesses suffer. And when businesses suffer, the economy does.

It's like clockwork. Each gear sets in motion another, which then sets in motion another, and so forth. Gas prices are just the beginning. But we can alleviate the pressure if we as citizens petition our government and our elected officials to do the following:

1) Reduce restrictions on offshore drilling so as to become energy independent. No more foreign oil!
2) Government needs to provide incentives for oil companies to lower gas prices. This would work hand-in-hand if condition #1 is agreed to.
3) Stop the selling of domestic oil to foreign countries until our energy problem has been solved. We need all the oil we can get.
4) Finally, the government should create the environment where private companies can research alternative sources of energy, free from government control and manipulation. Green energy is fine, as long as the free market produces it.

These are just simple solutions to an ever-increasing problem. Something needs to be done immediately, and the list above is one place we can start.

REFERENCES:
Guillen, Alex. Chu: DOE working to wean U.S. off oil, not lower prices. February 28,2012. Retrieved March 2, 2012 from http://www.politico.com/news/stories/0212/73408.html

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