Wednesday, May 03, 2006

Why Is Gas So High?

Robert Samuelson provides an excellent summary here.

Many are criticizing Republicans for their pandering offer of $100 per taxpayer to make up for the growth in gas prices, and they deserve that criticism. What many of those critics are failing to see is that there are no short term solutions at this point. High prices will eventually suppress demand and, thus, stabilize the price, but most people would not consider that to be an acceptable solution. Increased domestic oil drilling and alternative energy research are good ideas, but they would provide no relief in the short term.

The good news, as Samuelson points out, is that higher fuel prices have not depressed the American economy -- at least so far.

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