The Demand for an ever Higher Fuel Economy has decreased the demand for Gasoline and raised Gas Prices

Posted by PITHOCRATES - February 26th, 2012

Week in Review

A Republican congressman complains about the high price of gasoline.  But because he’s a Republican AND drives a Hummer he gets little sympathy (see Florida congressman upset at Obama for $70 fill-up of his Hummer by Justin Hyde posted 2/23/2012 on Yahoo! Autos).

Saying gas costs too much based on your H3 — which sports an average fuel economy of 16 to 18 mpg — seems akin to arguing Americans have grown too fat at the drive-through window of a Carl Jr.’s. Yet West and other drivers can’t be blamed for the current run-up; it’s not American demand for gasoline causing its prices to rise, but rather demand from China, Latin America and worries over Iran’s actions near the Strait of Hormuz. Last year, fossil fuels were America’s biggest export — partly because of the economic recession and the shift toward vehicles that get 40 mpg instead of 16.

Sad, isn’t it?  China and Latin America can enjoy life.  But the country that made driving the great American past time can’t.  Over there they’re buying gas and enjoying it.  Over here we make people feel ashamed for doing something their parents loved to do.  Packing the family into a big and safe vehicle.  Hitting the open road.  And seeing America.

Well, if it’s any consolation just think about this.  While we scrunch into our commuter mobiles that can fit 2 adults almost comfortably the Chinese communists are now living the American dream in China.  Enjoying the freedom and adventure gasoline gives you.  Who knows, perhaps they’ll be buying recreational vehicles in their retirement.  Spending their golden years seeing their country.  Like we once did here.  Visiting their family.  And camping out at parks and campgrounds.  Enjoying their retirement.  Something few can do now thanks to the high price of gasoline.

There’s a lot the government can do to fix this.  They can STOP doing everything that hinders the oil industry and stop equating gasoline to a drug addiction.  Let the market set the prices.  Let supply flow in to meet market demand.  And let us drive what we want to drive.

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