Another Reason for High Gas Prices?

Discussion in 'Current Events' started by Toro, Jun 28, 2008.

  1. Toro
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    Toro Diamond Member

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    Economist's View: "The Blame for High Gas prices"

    Unlike the partisans who want to blame only Democrats or only Republicans or only speculators or only OPEC or only environmentalists or only China and India or only oil companies, etc etc, to support their own pre-conceived dogmatic worldview, there is plenty of blame to spread around.
     
  2. BaronVonBigmeat
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    BaronVonBigmeat Senior Member

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    Ewww....Paul Krugman. For shame, Toro. :cheeky-smiley-018:

    Government spending on alternative energy hasn't produced jack squat. Now that there are real reasons to find alternatives (ie, $4/gallon gas), private companies are producing huge technological gains in terms of batteries, solar, alternative fuels and so forth. Private companies have done more to find realistic alternatives to gasoline in the last 5 years than government research has done in the last 30.

    And CAFE (Corporate Average Fuel Economy) laws haven't reduced our energy consumption. Thanks to the rebound effect, people can use their fuel savings to live even further from work. Suburban sprawl is the real root cause of our oil addiction btw, and it's almost entirely caused by big government policy at all levels of government.

    Really, there isn't lots of blame to spread around. The high cost of gas is almost all due to big aggressive government. Namely the Iraq war, and it's related expenses.
     
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  3. jreeves
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    jreeves Senior Member

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    :clap2:
     
  4. BaronVonBigmeat
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    BaronVonBigmeat Senior Member

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    I wonder what this non-economist non-scientist thinks the whole ethanol debacle has been? Here's a prime example of condescending ivory-tower eggheads in government rolling up their sleeves, and getting results that were exactly the opposite of what was intended. And now we see the supreme irony of liberal policies on alternative fuels (promoted when republicans were in power, btw) pushing millions of impoverished brown people in other countries to the brink of starvation.
     
  5. Toro
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    Toro Diamond Member

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    I think ethanol has more to do with the power of the farm lobby than anything else.
     
  6. editec
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    editec Mr. Forgot-it-All

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    I do not think I KNOW that the government could help the American people by promoting energy efficiency in ways we don't even consider right now.

    There is no excuse for the footdragging we've done for the last thirty years in the area of energy independence except that this government is the government of the wealthy, by the wealthy FOR the wealthy.

    Always was, likely always will be too.

    Incidently last week's ECONOMIST suggests that the current run up in oil prices is due to price manipulation...they didn't use the word conspiracy, but clearly somebody is manipulating the prices for their own benefit.

    There is, according to the ECONOMIST NO shortage of supply...none!
     
    Last edited: Jun 29, 2008
  7. Chris
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    Chris Gold Member

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    The reason oil prices are going up is because China and India are becoming developed nations. China is adding 9,000,000 cars a year to its roads. In 10 years they will have as many cars as we do. We have to change direction and be smarter.
     
  8. editec
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    editec Mr. Forgot-it-All

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    that explains a very small part of the problem.

    there is no shortage of oil according to the ECONOMIST.

    While I have every reason to think you're right about the inevitable pressure on prices, I'm inclined to trust their judgement on this current inexplicable spike in prices, Kirk.

    This is NOT a spike resulting from supply demand problems.
     
  9. jreeves
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    jreeves Senior Member

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    The price of oil is influenced by supply-demand, speculators and taxes. You can't view the total picture of price without considering each and every influence.
     
  10. politicsezine
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    politicsezine Concerned Canadian

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    I'll take my turn pointing the finger: China and India are the reason for high oil and gas prices.

    Their GDPs have grown between 7% and 10% every year for the last 15 years. The result is 2.4 billion Indians and Chinese who can now afford to buy more things, and a booming middle class that can now purchase cars.

    Furthermore, the Chinese and Indians pay way more for their gasoline than we do in North America. Oil companies there are really profitable because there is less government control and concern about oil companies trying to gouge the consumer.

    However, because most of the world's oil comes from Middle Eastern members of OPEC and countries bid for ownerships of those oil exports it means that American, Indian and Chinese oil investors are in a bidding war to control where those oil exports go.

    In the United States our dependency on cheap oil is now becoming a drag on our economy. Even though the USA gets most of its oil from Canada, Venezuela, Africa and Iraq the global demand for oil pushes the oil prices in those countries up too (China is importing oil from every source they can find). End result? The USA is shit out of luck.

    Oil is one of the reasons China's economy is growing so fast, but the increase in oil prices is having the reverse effect in the USA and damaging the economy.

    Because China's economy is going to continue to grow oil demand is going to get worse, not better, and the USA needs to either learn to deal with high gas prices... or start using an alternative source like hydrogen.
     
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