30 June 2008

The Debt Equals High Gas Prices

In a combination of two common threads on this blog, Ben Stein in an article in the NY Times says that the one sure way to reduce oil prices would be for the US to reduce the debt.

...The average private worker now earns very roughly $600 a week... gasoline might well account for close to one-tenth of his or her earnings. If the price of gas goes up 25 percent, the effect is serious...

...government can do little to make the price of oil fall in the short run, except, perhaps, for one basic thing: balance the budget. The world price of oil is denominated in dollars. The dollar is weak for many reasons, but a big one is the immense budget deficits run by our government. If President Bush and Senators John McCain and Barack Obama were to stand together in front of a camera and solemnly swear that they would balance the budget in four years, even if it required tax increases on people earning millions, the dollar would rise against the euro, and oil would fall in dollars.
Ha Ha Haaaaa! I don't think I'll hold my breath waiting on that press conference....That's as likely to happen as this water powered car I keep hearing about.

1 comment:

Anonymous said...

The oil price can be reduce,if they reduce the debt.There is also a more way to reduce the oil price that they must increase the worker salary.