Why Do Obama and Putin Agree on Energy Price Hikes?

April 4, 2014 - 10:27 AM

While Obama continues to praise himself and his party for the mediocrity of results on Obamacare, the little guy is getting hosed at the gas pump.

Somehow, we are supposed to accept high gas prices as a way of life, rather than try to make it easier on the population and economy by developing our own fuel here at home.

Recalling the summer of 2008, during the presidential campaign, gas prices shot up to an unheard of price of over four dollars a gallon.  The economic wizard concurred with a question posed to him during an interview, "So, could high prices help us?"

Obama replied, "I think that I would have preferred a gradual adjustment."

By "adjustment" he meant that we have to adjust to using less fuel because our demand is too high.

During that interview with John Harwood, Obama said, "Well, I think that we have been slow to move in a better direction when it comes to energy usage. And the president, frankly, hasn't had an energy policy. And as a consequence, we've been consuming energy as if it's infinite. We now know that our demand is badly outstripping supply with China and India growing as rapidly as they are."

So that spike in 2008 ended with a drop to around $1.60, and since then, we have been gradually "adjusting," meaning that we can't expect to be able to increase our consumption of gasoline as long as the left is in charge.  Gasoline keeps trending up, and though it isn't a big surprise spike, it's an expense that is unnecessary.  It could be half as much.

The left doesn't think it's a good idea to use energy, but energy is the only thrust of a strong economy.  The absolute stupidity of global warming hysteria is driving the entire world into stalling economies.

Obama's gasoline policy is, as with all of his energy policy, a claim that America is too prosperous and must slow down and stall.  He mentioned India and China, and their increased energy consumption because of their expansion.  We don't get to talk expansion.  We only get to talk shrink.

So here we are, deep in Obama's energy policy, with his preferred gradual adjustments, while at the same time, saying we are such a wealthy nation that no one should be making less than ten dollars an hour, and that children shouldn't be in poverty.

The clash of claims, that America is wealthy so we should do something, and that America is too prosperous so we should stop it, can't work. The dichotomy is ludicrous, yet the left doesn't seem to measure one against the other.

But I just read an interesting story.  Vladimir Putin is increasing the cost of natural gas for Ukraine. From the New York Times:

Gazprom, the Russian energy company, stepped up the economic pressure on Tuesday by sharply raising the price it charges for natural gas.

Gazprom, a state-controlled gas exporter, raised the price to $385 for 1,000 cubic meters of gas, the standard measure used in gas deals in Europe, from $268, an increase of about 44 percent.

The price increase follows what analysts say is a long practice at Gazprom of punitive pricing for countries in the former Soviet Union and Eastern Europe that are at odds politically with Moscow, while offering discounts to governments seen as friendly.

How about that?  So, Vlad knows it is hard on an economy to increase energy prices, and Obama admits he would like to see our gasoline prices gradually increase, which they have, with the same effect that Russia is trying on Ukraine.

I don't know what's going to happen when the American people realize all of this constriction is intentional, but I hope those asleep will wake up soon.