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Peter Schiff - No Easy Fix for Gas Prices



February 29, 2012 – Comments (2)

[He criticizes Bill O'Reilly here, so that's got to be worth some recs.

This month, as unleaded gasoline prices increased for 17 consecutive days (to a national average of $3.647 per gallon - up 11% thus far this year) and West Texas Intermediate crude joined Brent crude in breaking through a $100 per barrel level, energy prices emerged as a full blown political issue. While President Obama conveniently claimed that rising prices were the consequence of an improving economy (they're not, and it isn't) Republican fingers began to point sanctimoniously at current drilling policies. And while none of the accusers had any idea why prices were actually going up, the award for the most dangerous 'solution' must go to Bill O'Reilly at Fox News. The master of the "No Spin Zone" announced that high pump prices could be permanently brought down by a presidential order to restrict exports of refined gasoline. Not only does Mr. O'Reilly's idea demonstrate contempt for the U.S. Constitution but it also displays a thorough lack of economic understanding. 

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2 Comments – Post Your Own

#1) On February 29, 2012 at 5:12 PM, rd80 (95.18) wrote:

One of Schiff's better pieces.

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#2) On March 03, 2012 at 9:55 AM, carfun (< 20) wrote:

GM is trying to do the same thing he mentions about airlines, reduce total sales but increase prices (by reducing incentives). This allows them to reduce capitol costs (fewer plants) and worker costs (less wages, benefits, and future pension liability) and increase profits. This may not work as well for GM because there is a lot more competition in the auto industry and GM is not a low cost producer.

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