Black Gold, Bad Business

What happens when you have a capitalist business who becomes anti-capitalist. One who breaks competition laws and brings down the economy. You have oil. Gas prices are on there way up again, but there's no Katrina this time to blame. For a industry that claims to be struggling due to damage to refineries and crisis in the middle east, they seem to be doing very well for themselves, making obsene profits. The problems is that they are harming other industries. Recently, American car company Chrysler lashed out at big oil for gouging consumers and hurting their industry. I agree with them on this. The price we are paying is not the true price but rather one resulting from collusion and back door dealing. Unfortunately, there seems to be no proof of this, accoding to our government, which is making an obsene profit for itself though gas taxes.

So what is a fair gas price. Well at today's oil prices, gas should be at 70 cents per liter. In itself, this price has been grossly over inflated from $20 per barrle in 2002 to $70 in 2006. It makes me wonder where all this oil that the US is supposedly stealing from the Iraqis is, as socialists claim. There are no oil shortages as big oil claims. In truth, they hold back production to jack prices up, then increase production slightly to drop them down a bit. Dumb consumers think they are getting a bargain and get used to paying the new higher prices. It's just toying with the simple supply and demand concept.

What makes matters worse is that high prices for oil are ruining other sectors of the economy. Businesses can no longer afford to ship goods so they must raise prices, making draining more from consumers who have less and less in their pockets after taxes. Businesses that rely on machinery such as construction and the automotive industry are seeing their profits dip. All this so a monopolistic and anti-capitalist industry can line its already stuffed pockets.

So what can be done. First off, the federal government should cut gas taxes immediately. Once a good has a specific tax levied on it, it becomes imposible for governments to regulate it. Take cigarettes for example. It's not as if the government is using these taxes to fix roads as the roads are crumbling even with record government incomes. Most of the money is wasted in some way or another to pay useless civil servants for busy work. Once a government has cut its addiction on taxes from that specific good, it becomes a whole lot easier to clamp down in order to protect consumers and other industries.

Next, we must find alternative fuel sources that cost less. They exist in the form of hydrogen power and alcohol based fuels. Money needs to be given to help develop a practical vehicle that runs off them. Hybrids are no good as they still use gasoline and often have grossly exaggerated fuel efficiency ratings.

Thirdly, we need to get rid of unnecessarily large vehicles. There are too many SUVs and minivans on the road that are being used for communter vehicles. They usually only have one person in them, and they usually are not hauling cargo. These vehicles are not safer nor better for families. I can fit just as much in the trunk of my compact car as most SUVs, and hold just as many passengers.

Next, transit efficiency must be drastically improved, especially in Ontario. People are not going to ride the bus or train if you keep raising ticket prices. They have to be a cheap and convinient way to work and play. First off, the GO line needs to increase the number of trains. By doing so, people will take them downtown instead of their cars for day trips. Cities must also make connecting bus routes with neighbouring cities, which is particularly lacking in the west end of the GTA.

It's time to take a bite out of big oil before our entire economy collapses under their games and greed. If it does, the 1930s will look like a walk in the park so lets stop that before it happens.