Finally, a simple and sensible report on why US gasoline is too cheap–
“Americans cut out 12 billion miles of driving in June, a 4.7% drop from June 2007. During the first half of this year, Americans reduced their oil consumption by 800,000 barrels per day as compared with the first half of 2007.
These changes are much more dramatic than anything resulting from proposals borne of political expedience. To be sure, high prices cause hardships, and the worst could come this winter from painfully high home heating oil prices. Congress and the president should look hard at increasing funds to help the poorest through a tough winter. But if oil prices continue falling, much of the recent momentum could be slowed, to the delight of those who profit from feeding the nation’s addiction.”
With all the exceptions, we sometimes get slapped in the face with the simplest lesson of market economics. Let the market work, and efficient use will result. Government policy, whether misinformed or driven by political expedience, is working against the long term interests of American consumers.