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Media Sees Gas Prices As Stimulus Plan

October 24, 2008

Americans have learned plenty. What will Corporations and Big Government learn?

fading romance

fading romance

I don’t have to tell you that it’s great that gas prices are down. You know it. Millions have dumped their old SUV or gas guzzler for something better or are using alternative transportation. You wouldn’t know it by the condition of the auto industry. They are expecting a financing bailout. Perhaps Americans really have cut back. The media is heralding the fact that a $1.50 a gallon price decline is a wonderful stimulus plan. You heard me right.

Oil-rich sheiks flush with cash and inflation from high prices are suddenly seeing a reverse in their fortunes. As a result, you can expect to see an veritable onslaught in the decline of OPEC production. After all, they do compete with other oil-rich nations. In addition, the rest of the world is temporarily reeling from recessionary setbacks. Some of those foreign job-thiefs might actually be discovering what it is like to lose a decent job, at least in relation to another nation’s pay scale.

The public line is that demand for fuel is sliding, taking with it prices and OPEC profits. We haven’t heard any meaningful results from the ban on shorting commodities futures. Since the ban went into effect, Americans have seen oil prices slide.

junked transport

junked transport

Still, Americans have learned a few things as a result of $4 a gallon gas prices. Driving patterns have changed for the better. World oil prices have tumbled to around $64 a barrel from the all-time high in July of $147 a barrel. All that excess production has the OPEC cartel cutting production in an effort to bring prices back up. OPEC nations are scrambling to keep their cash flow of devalued dollars up despite high inflation in the Middle East.

The media is gloating that we have a fiscal stimulus going on. The reality is that gas prices are approaching where they were a year ago and nothing more. Nothing has changed really. We still need decent transportation and energy solutions in a massive fuel-consuming nation. A national energy policy would be a start in the right direction.

Economic contraction means that Americans have been tightly squeezed. You can feel the squeeze yourself. Now that the national economy is in the cyclical dumper, most Americans aren’t likely to go hog wild with spending and gas guzzling even if they could. Wages are stagnant and nearly a million are unemployed this year. The roller coaster ride isn’t over yet. Heck,  the average American is saving that projected $900 yearly in fuel cost savings for food or to try to keep up that overpriced house payment.

The U.S. Government is trying to figure out how to pay the bills. Road usage is down and along with it taxes and revenue of all kinds. How about getting rid of a few of those useless porky clubs they call departments. You could start with the SEC, the Department of Homeland Security or try the FDA. Because of losses in workload, you could cut their funds in half and they could still do the same job. Government keep expanding despite huge losses. They will probably want to cut social security and social aid rather than sacrifice their precious government programs. But I digress…

Some Americans, like this writer, aren’t driving at all. I call it the luxury of being retired. It may not be easy all the time, but it beats running in circles trying to decide what you are going to cut next or how you are going to eat. When Corporate Multinationals sent my office packing to India, I retired for a while. Maybe you should find a way to do the same thing and create a sensation. Start a business and get creative. Do something wholly your own and be proud. Americans need more fiscal stimulus than pocket change. We don’t need corporate abuse either. Economic payback has come full circle. Don’t kid yourself. They need us more than we need them. ~ E. Manning

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