Greater than any disease is the issue of ignorance. I often talk to well meaning folks who have so many opinions about the Bush Administration and the economy while the facts that would truly advise them are totally ignored.
One lady told me that Bush is raising the price of oil to profit from its earnings. Another time I was told that the Republicans think they own the whole country and just allow us to live in it. On the same note I have been told that Obama is a very smart guy and he should be president.
Most of these statements spew forth from black and white liberals who desire freedom and prosperity at the expense of the wealthy. Economically, it would not make much sense for Bush to support buying oil from the Middle East when he could yield greater returns from the American oil industry.
Second, the United States is not a member of the Organization of the Petroleum Exporting Countries (OPEC). OPEC is made up of thirteen countries who control two-thirds of the world’s oil reserves. Their output is over 35 percent of the market. It’s OPEC who controls crude oil prices, and its government taxation that finally determines the price after refinery on American soil.
If the U.S. Government raises taxes for oil companies then those costs must be transferred over to the consumer in order for businesses to make a profit, pay their employees and reinvest capital.
A Republican form of government that believes in low taxes and small administration understand that the public will benefit more from innovative ideas through free-market competition. It is high taxes and government price controls that leads to inflation and an unstable market. Remember, it was Franklin Roosevelt’s National Recovery Act (NRA) of 1933 that helped prolong the Great Depression. The NRA required above-market wages for fresh hires which led to elevated unemployment.
A president who signs activist legislation that penalizes businesses for providing goods to consumers will only make it more difficult for those very consumers to either purchase their desired goods; or those goods would not be provided at all due to the high cost of production and low return on capital (when a company is forced into bankruptcy).
FDR’s New Deal that found support with a majority Democratic Congress was a fable but he sold it to a desperate people. In similar fashion, Obama’s “change” is another step in taking America down a comparable road until a new “Ronald Reagan” gives power back to the consumer and restores true competition in the business world. Thus, resulting in a superior change in our economy.