Saturday, November 29, 2014

Oil Prices Falling - Great For The World Economy

Oil prices are falling because of increased production in the United States.   This is great for the world economy, if politicians in various countries don't screw it up, by using lower prices as an opportunity to raise taxes on carbon based fuels.  The US has been slow to recover from Recession because Emperor Pinocchio Obama and his Socialist Pals in government have burdened the economy with higher taxes, ObamaCare and thousands of new regulations.  Now there are calls from Socialists and even RINOS in the US to raise the gas tax, since the price of gasoline has fallen from about $4 a gallon to about $2.75 in many states.  Despite all the current waste, fraud, abuse, corruption and redundancy in government, these politicians want more money supposedly to fund infrastructure and the Highway Trust Fund.  This is happening because the price of a barrel of oil has fallen from about $100 to $66 and it could go even lower if the US Energy Industry is unleashed to produce even more oil and natural gas.

This Blogger supports more infrastructure spending; but by using money we already give the government.   The American Taxpayer is not taxed too little, it is that the government spends too much on dumb things.  Until we see an end to the waste, fraud, abuse, corruption and redundancy in government spending, this Blogger is opposed to any new taxes.   In any case, falling oil prices is like a tax cut for all Americans because cutting the cost of energy impacts the costs of everything.  If we all have to pay less for gasoline and heating oil, consumers will have more money to spend on other discretionary items, which should boost the economy.   We have to grow from 2% annual GDP growth and adding about 200,000 jobs a month, which just keeps up with population growth, to 4% or higher GDP growth to really see economic growth in America and the world. 

Everyone with a brain has been saying that American Energy Independence would solve many of our nation's problems.  We could get people back to work in good paying jobs.  It would raise government tax revenues, which if not squandered, could help pay down our $18 Trillion National Debt to get our country back on a sound financial basis.  With a new Republican Congress taking over in January, just maybe our elected officials will get it right.  They should start with approving the Keystone Pipeline.  Of course, we are still counting the days until January 20, 2017 when Emperor Obama is out of office to really change course and get our country back on the right track.     

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