Sunday, May 13, 2007

“Record gas prices are great news for U.S.” Gadabout Jack Challenges This Opinion

This was the title of this Sunday’s Op Ed by Andres Oppenheimer, of the Miami Herald. Gadabout Jack says, Maybe, but Andres has the argument overly simplified and framed under a dim light. Andy (may I call you Andy?) believes that $4.00 per gallon gas is some sort of a magical number that once reached will magically shift consumer spending habits. He also asserts that if Americans don’t reduce their wasteful habits, we'll continue to grow evil “petro-dictators” like our fine friend Hugo Chavez. Andy's thesis is heavily weighted upon the increased numbers of trucks and SUV’s on the road compared to distant years.

While Gadabout firmly believes higher fuel costs will pressure consumption rates down, but he also believes Andres is off base and nonsensical. To make my argument clear let’s look at some nifty facts:


The driving population in America continues to grow. America is growing and adding to the population.

The light trucks and SUV’s of today are more fuel efficient than the automobiles of the past—by a wide margin.

The station wagons of the 60’s and 70’s were considered CARS.

America refuses to drill off its coasts and ANWR. Proportionately, our domestic production decreases because of this.

In today’s society, both spouses are active in the workplace, which increases fuel consumption.

American’s solve problems by throwing money at our problems, and we have lots of money.

Propositional Phrases (that indicate relationships):

Higher prices at the pump result in lower consumption.

Higher prices at the pump result in higher prices for commercial services.

Higher prices at the pump result in less consumer consumption in other areas.

Higher prices at the pump result in an increase in sales of high efficient autos.

Higher prices at the pump will increase pressure for higher domestic production.

Higher prices at the pump will increase demands for nuclear, coal, and alternative fuel sources.

Gadabout believes that evil petro-dictators will always be around, so long as there is a “valuable resource” controlled by a non democratic government. Someday, the world may very well be oil independent, but there will always be a “resource” controlled by a dictatorship, or other form of government controlled by very few. This is why America attempts to spread democracy around the world. So, Andy, is $4.00 gas really the motivator, or is it global governance structures? Have you been listening to phrases like “Free Trade” and such? I’ll spell it out for you, evil governments cause global problems.

This is what will happen as the price of fuel increases—we’ll have higher inflation! America will always get what it needs for prosperity and growth, because America is the strongest economy on the planet. As far as Chavez goes, the likes of him come and go. Chavez types leave dirty specks and smudges in the annals of time, and are soon forgotten after they die. America will figure out this oil question in due time. Start believing in yourself, America!


bobo said...

I believe.

Gadabout Jack said...

Are you saying that you believe higher gas prices are good for the U.S?

pee-nut said...

the gas prices are ridic!! i walk everywhere i can now.

bobo said...

I'm saying that I believe in America.

Anonymous said...

Please read "Confessions of an economic hitman". I would love to hear your comments on this especially in relation to the gas price musings

Gadabout Jack said...

Dear Anonymous,
I still need to read "Confessions of an economic hitman." I plead for patience.