BY RUSSELL TURNER
SUPPLY AND DEMAND
Over the past several weeks we Americans have enjoyed lower gasoline prices. The lower price is due to the fact that there is abundant supply of oil in the world market. Whether the oil is pumped here in the United States or on the other side of the world affects the overall price. The Saudi Arabians have maintained increased production because of their fear of the shale gas and oil production here in America. They understand that many companies here in America have borrowed huge sums of money to get into business; they know that if the price of oil stays low they cannot repay their loans and they will go out of business. The lesson to be learned is very simple, the more supply of any commodity the lower the price will be. It is sad that the liberals in Washington cannot understand that simple law of economics.
A couple of days ago I listened to an interview of a person who wanted to stop the burning of coal and oil and even went on to propose doing away with nuclear energy. If we Americans want to maintain our current standard of living we must have a reliable and affordable source of energy. Solar panels and windmills will not provide the power we need; hopefully in the future we can develop a perfect energy source, but that day is not here yet. I am amazed at the excuses that the liberals use to justify their position. In the debate on the Keystone XL pipeline the argument was put forward that the jobs that would be created would only be temporary, I would like to share some breaking news; all construction jobs are temporary. Whether you are building a bridge or a skyscraper the construction jobs are over when the building is completed. Maybe our lawmakers are so used to the way government creates jobs; when some department is created it seems even congress cannot terminate it and they go on forever.
When government creates more jobs it is the taxpayer who is footing the bill for their employment. The Keystone project is funded by private businesses. We Americans need to realize that the increased supply of oil in the market place will allow the laws of supply and demand to regulate the price of gasoline and other energy that we use. The capitalistic economic system is the best system ever devised by man and it works well until the government starts manipulating it. With an abundant source of relatively cheap energy some of the jobs that we have been exporting to places like China just may start coming back to our country. The Keystone pipeline is just one thing that will help insure more affordable energy. It is time that our political class stops playing crony capitalism and stops having an energy policy that helps some dictator in the Middle East.
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