American Elephants

Democrats Vote to Raise Cost of Gas and Food! by American Elephant

Democrats Vote to Raise Cost of Gas and Food!

The law of supply and demand really is very simple.The price of any good or service is determined by how much people want it and how available it is. The more available it is, the less it will cost; the less available, the more it will cost.

The price of oil, for example, is skyrocketing because demand is skyrocketing. As trade is raising the standard of living in countries like China and India, more people are using more energy, so the demand increases and the price goes with it.

Republicans understand this.

That is why when Republicans were in charge they offered tax-breaks to oil companies if they would do certain things to increase the supply of oil and gasoline.

Democrats either don’t understand the law of supply and demand, or they simply don’t care. I suspect its a combination of the two.

Democrats have just passed another “energy” bill that does absolutely nothing to increase the supply of energy or bring the prices of energy down. On the contrary, they have voted to raise taxes on oil companies and take away the incentives to increase supply.

This means the price of gas will go up as oil companies pass their increased tax burden on to the consumer, and will go up even more as they scale back their efforts to increase supply.

Democrats did this despite the news that gas prices could reach $4 per gallon in some places next summer because of the increasing demand on crude oil. Lets be clear about that, the increased costs Democrats voted for would be on top of the $4/gallon price.

But the stupidity of the bill doesn’t end there.

The Democrats’ bill would also increase subsidies for ethanol and other “biofuels”. The problem with this (well, there are many problems with this), but the biggest problem is that when government creates artificial demand for ethanol, then the companies that make ethanol increase the demand for corn (which is used to make ethanol).

So, the price of corn goes up.

Not only does this raise the price of foods made from corn — i.e. cereals, tortillas, etc. But animals also eat corn. So the price goes up on chicken, eggs, milk, beef, you name it.

Virtually all the inflation you’ve noticed at the supermarket can be attributed to the increased cost of oil and the increased cost of corn because of “biofuel” subsidies. And Democrats just voted to increase the cost of both gas and groceries even more.

But the stupidity doesn’t end there!

The new taxes on oil companies only apply to domestic oil companies. Which means this bill will lower the amount of oil and gas we produce ourselves, and increase our dependence on foreign oil!

Plus, ethanol and other “biofuels” cost more to produce than oil, require far more land to produce than oil (it would take every single acre of farmland in the United States plus another 50 percent to make enough ethanol to replace oil), take far more energy to produce than oil, and deliver far less energy than oil. All of which means “biofuels” are actually worse for the planet!

Keep all this in mind when President Bush vetoes the bill. No doubt Democrats will demonize him for doing so, but they will be lying, as usual.

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