Shortages and Price Rises

The Moorefield Examiner ran a poll yesterday asking how the US government should stabilize gas prices. 30% responded that the answer lay in increasing supply by drilling into known reserves including public lands. 11% suggested that current market forces ought to be left alone. However 53% suggested that the oil companies be overwhelmingly taxed to seize their profits.

The price of oil and gas rises because of shortages in supply. Gas companies (and this is true for food as well) must raise prices substantially in times of short supply. Price rises actually represent the lesser evil when compared to a complete cut off of product to the market. Seizing profits won't help because these companies do not stick their money into a sock and hide it. Most of them reinvest profits into production and research, looking for new sources of energy or making production more efficient. Putting legal caps on gas or food prices will not reduce demand and we would run low on or run out of gas and perhaps some kinds of food as well. President Bush's recent veto of a bill that would put caps on food prices showed real leadership.

Does it make anyone happy to pay $4 a gallon for gas? Nope. The key for the United States whether it comes to food or fuel is to assume leadership and increase supply. We can do both since we have vast untapped reserves of oil and we pay farmers to not farm. Flooding the market with US oil and food will drop prices substantially, but it will take congressional action to make this happen. We must remember this in the coming election.

*********************************************************************

Kudos to Lisa Peana and the West Virginia Republican Club's blog for predicting the primary day massacre of incumbent Democrats. My question is this, were these Democrats all very publicly associated with Joe Manchin? I wonder how many Democratic candidates and incumbents will be eager to get their pictures with the Gov in this go-round?

**********************************************************************

Prayers for Senator Edward Kennedy and his family. No one except the most evil should have to suffer from the ravages of brain cancer. We may disagree with the Senator a lot, but we hope that God sees fit to enable him to make a full recovery.