The man who made clear that he wanted gas prices to be higher has made good on his promises.
1. Transportation of Goods – While rising gas prices often lead to higher prices for a gas tank of fuel, the cost of oil is built into the price of anything. Oranges, for example, may travel several hundred or even thousands of miles from Florida. All that travel time means burning fuel, and later higher costs for oranges, even though oranges aren’t directly tied to oil. So, basically everything rises in cost after oil does.
2. Export Economies – These higher oil costs often mean economic softening in areas that are dependent on foreign purchases of goods. Take, for example, China and Vietnam which each produce a large amount of consumer products for export to the United States. Due to the distance these goods have to travel, they become more costly in foreign markets against local competitors with lower exposure to oil. Thus, exports usually decline.
3. Consumer Spending – Higher gas prices mean that shoppers are either 1) valuing more the small amount of extra money they have to spend or 2) seeing a general decline in the amount of money they can afford to spend.
4. Rising Derivative Costs – Oil may help us get from A to B in the form of gasoline, but it is also very important in making plastics and polymers, two very important materials that are used in just about everything. Higher prices for oil means higher prices for plastic and ultimately higher prices for transporting the plastics from one place to another.
And of course, home heating oil.
Barack Obama’s answer to the high cost of home heating oil?
Just buy a new car!
Obama needled one questioner who asked about gas prices, now averaging close to $3.70 a gallon nationwide, and suggested that the gentleman consider getting rid of his gas-guzzling vehicle.
“If you’re complaining about the price of gas and you’re only getting 8 miles a gallon, you know,” Obama said laughingly. “You might want to think about a trade-in.”
When an audience member commented that he had a family of ten kids, Obama replied:
“Well, you definitely need a hybrid van then.”
Except, where is one to get a hybrid van? Let’s start with mini-vans.
How about a Toyota Sienna hybrid? Not available. Gas mileage: 19/24
How about a Nissan Quest hybrid? Not available. Gas mileage 19/24
How about a Ford Flex hybrid? Nope. Gas mileage 17/24
How about an E-series For van or wagon? Nope. Gas mileage 13/17
Now let’s go to Obama Motors.
How about a Town and Country hybrid? Nope. Gas mileage 17/25
(Chrysler did at one time have the Aspen hybrid. Cost: $45,000)
Buick Enclave? No hybrid. Gas mileage 14/24
Chevrolet Tahoe hybrid? YES! Mileage 20/23
(Cost: starts at $51,000. There is no Suburban hybrid.)
Edmunds shows 5 hybrid vehicles in the $15-25,000 range; Honda Civic hybrid, Honda CRZ, Honda Insight Toyota Prius and Smartfortwo.
None will hold ten kids unless they’re really tiny kids. Obama’s flippant answer provided no solution to the dilemma his high gas prices create. There are no hybrid vans. Perhaps Obama was referring to new Chevrolet Unicorn hybrid.
The other alternative offered by Obama is go to coal-fired (i.e. electric) vehicles.
Whoops! That’s going to cost you a small fortune as well since Obama intends to make your electric bills skyrocket!
Obama has ordered government agencies to buy “eco-friendly” vehicles. And what of Obama’s limos? Obama’s limousines are exempt from the new “green” rules. He exempted them.
WASHINGTON, April 3 (UPI) — While President Obama has ordered U.S. agencies to buy eco-friendly vehicles, many Secret Service vehicles and Obama’s limo are exempt, a spokesman said.
You need not worry about the impact of gas prices on Back Obama. He’s worth at least $5 million and will be far more wealthy once he leaves the Presidency. So none of this willl hurt him one bit!
Finally, to show you he isn’t out of touch, Obama claimed that he remembered what it was like to pump gas.
That’s total crap. I pumped gas for eight years. I think what Obama meant to say is that he pimped gas for eight years.
There, now that make sense.