Well, with U.S. offshore oil production expected to drop 13% this year, I guess that's to be expected; economics 101 taught me that if you reduce the supply of something, either the price is going to go up or demand will go down, or both.
You may hate this and I may hate this, but President Obama thinks it's just peachy. He was trying to sell his cap-and-trade scheme a whole year before he became president, and promised you it would hit you in your wallet. Remember?
You know, when I was asked earlier about the issue of coal, uh, you know — Under my plan of a cap and trade system, electricity rates would necessarily skyrocket. Even regardless of what I say about whether coal is good or bad. Because I’m capping greenhouse gases, coal power plants, you know, natural gas, you name it — whatever the plants were, whatever the industry was, uh, they would have to retrofit their operations. That will cost money. They will pass that money on to consumers.A couple of points:
- Power companies wouldn't pass money on to consumers. They would pass costs on to consumers. Just as they (and every other business) will pass on any new taxes Obama cooks up for them in the coming years.
- "Wait," you say, "he's talking about coal, not gasoline. And didn't Congress shoot down cap-and-trade last year anyway?"
So when you get the same sick feeling in your stomach when you open your utility bill that you get when you pull up to the gas pump, don't be surprised. Your president told you he was going to do this. Maybe you didn't believe him then.
Do you believe him now?