Sunday, May 07, 2006

A solution to the rising gasoline prices

As gasoline prices are soaring through the roof, the people are screaming, and the Democrats are licking their lips. They blame Republicans on sharing their bed with the Big Oil companies. The Republicans retaliate by blaming Democrats on sharing their bed with the environmental agencies. Both are blaming each other, but none are offering a solution. I know, Republicans are offering a $100 gas rebate check, but...get real! A hundred dollars will by two or three tanks of gas; that's it. Mandatory mileage requirements, taxing gas profits, or otherwise shifting the blame to the companies will only force prices higher. But, there is some solutions that we can do to help.

First, and the simplest, is to repeal the tax on gasoline; federal, state, and local combined that add to the price of gas. That would save 50-70 cents per gallon at the pump. I would eliminate all taxes period, but for now, just the gas tax.

"But, how will we pay for services without the tax?" Easy. First, get the troops out of Iraq, Iran, and the other 135+ countries around the world, bring them home, and dismantle the empire. We would then discharged them and release them to the private sector.

"How will we defend this country?" By using the 2nd Amendment the way the Framers intended. Remember, the Constitution and the Bill of Rights (including the 2nd Amendment) are the people instructing the government, not vise versa. Just ask Switzerland and its neutrality while surrounded by Germany, Italy, France, and Austria in World War I and World War II. Hitler called Switzerland "a little porcupine".

Besides, I thought Iraq will pay for the "liberation" (i.e., invasion and occupation) with oil. Before the war, oil was less than $30 a barrel. Today, it is over $70. So much for the oil prices, among other things.

Next, remove restrictions on the building of refineries. Refining plants are the "choke point" that is currently driving down the supply of gasoline and thus resulting in higher prices. In supply-and-demand system, if you lower supply or raise demand, that will raise the price. If you raise supply or lower demand, that will lower the price. It is called a free-market economy.

Finally, eliminate the requirement that refineries produce different mixtures of gasoline for the 50 states. This all but destroys the ability of gasoline producers to take advantage of economies of scale and adds an unknowable amount to the price of each gallon.

That is just a start. Each of these things represents a hurdle that government places in the way of gas suppliers. By eliminating these three, it should drive down gas prices considerably while making a profit for the stockholders. The companies are happy, and the people are happy. The only one who's not happy is the government, which means I'm happy. I love my country, but I don't trust its government.


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