High spending, devalued dollar, conflict all contribute to rising fuel costs
Like many Americans, I am growing very tired of the constant rise in gas prices. The price is currently hovering between $3.72 and $3.73 nationally, according to the American Automobile Association. The rising price of oil is bad news for the United States’ sluggishly recovering economy. It is no surprise that the political nature of rising gas prices is all that gets analyzed, from the Keystone XL pipeline to the role of America’s oil reserves in times of crisis. The reality is that to solve this problem, you must be willing to look past the surface and realize why it is happening.
The massive national debt has been racked up because the federal government spends more than it earns in revenue. Through all of this spending and the eventual inflation to cover the shortfalls, the value of the dollar has gone down fast, leaving Americans saddled with increasing prices for the goods that they must have in order to go about their lives.
Just how far are Americans willing to go for gas? Recent studies say that consumers would still buy unleaded gas up to prices around $4.50 to $5.50 per gallon. If gasoline prices reach that amount, people are going to start exploring other transportation options. While this may play into environmental goals, modern society will take a drastic hit when fewer drivers take to the roads for school, work and basic tourism. What is important is not that Americans are deterred by fuel prices from traveling, but that affordable fuel prices keep our society running at its current level of activity. That goal could include alternative fuel options, but the immediate focus should be on reducing gas prices to affordable limits — at least for the time being.
The possibility of war with Iran is another factor contributing to the rising price of gasoline. Speculations about our future with Iran and the supply of oil are key to rising prices. We should be extremely hesitant when it comes to a war with Iran, because not only will gas prices be negatively affected by the war itself, but also because of the massive military spending that is going to be necessary to fund the war, thus raising the debt and contributing to the decline of the dollar. Eliminating the capital gains tax, free trade of goods with Iran and other Middle Eastern nations instead or war and hostility and a return to sound currency are all ways that we can cut the price of gasoline.
If politicians were willing to take note of these solutions, then maybe America could finally make fuel independence a part of its future. Even more important: Maybe I wouldn’t have to sell my plasma to afford the gas to see Dave Matthews Band this summer.
More Like This
Weekend Calendar: 3/27-3/29
By Kirby Knowlton | March 26, 2015Congress needs new solution for ‘fiscal cliff’
By Stephen Barry | Nov. 30, 2012