Tip:
Highlight text to annotate it
X
How Gasoline and milk are affected by the free market. How do Gas prices effect the economy?
February of 2009 was an historic month
for our country we had a just inaugurated our first black president
and also the cost of gasoline was only about $1.84 a gallon
now in the summer 2012 auto gasoline is predicted to
exceed $4 a gallon.
as a comparison
a gallon of milk in February 2009 cost
$3.58.
It may surprise you to learn that the average cost of a gallon milk decreased
by about a penny from
February 2009 to December 2011.
So why is a gallon of gasoline going to increase almost two times
from February 2009 to Summer 2012 while the cost of a
gallon of milk that's going to go down by about a penny during that same period?
The answer to that question may surprise you.
You see, milk operates on a free market system
farmers are free to create more farms and breed or buy more milk producing cows
at any time
the more supply of milk that we have the lower the cost of the milk at the
grocery store
the farmer makes more money selling more gallons of milk
and we as a consumer get a gallon of milk for less money than we did almost
three years previously
that is the free market system.
A gallon of gasoline does not work on the free market system it is heavily
regulated and tax by federal and states authorities.
For example
the federal and state tax on each gallon of gas in the state of california is
almost fifty five cents
so if you go to the store
you buy 20 gallons of gasoline at the pump,
it'll cost you $11 in taxes for that one tank of gas.
Unlike a milk farmer who can breed or buy more cows, the federal and state governments
do not allow oil companies to drill and produce all the oil we need in the
United States
That policy significantly increases the cost of a gallon of gas
also
refineries are needed to convert crude oil into auto gasoline.
The federal and state governments along with environmentalists have stopped the
USA from building a US based refinery since 1976.
Now to put things into perspective,
1976 was eight years before the Lebron James was even born.
We have added more than a hundred million people in the United States
since 1976.
That means we need more autos, more planes and trucks
to get that gallon of milk to the grocery store.
US companies now are not allowed to produce a refined oil and that
restriction is imposed by our own government.
Now what can you do about this? There is really only one thing you can do
about this problem and that is to elect federal and state politicians that will
allow companies to drill and refine oil.
There is a very simple test to decide whom you should vote for,
ask a politician about their energy policy.
If they talk about green energy and windmill, you should do two things
first, do not cast a vote for that politician and second
give him or her a copy of a book name Don Quixote
which is about someone else
but also it's a lot of time chasing after windmills.
Let's work together to try to get the cost of gasoline down to about
$1.50 a gallon.
Please vote in the next election for someone that will give us cheaper
gasoline by using our free market system.