Here is a letter I sent to the Sea Times today:
Editor,
EJ Dionne on 7/18 authoritatively ignores the lessons of economics. It is not the magic that Dionne is seeking. It is the law of Supply and Demand - more supply of oil lowers the prices.
Dionne should read this week's news. President Bush announced the end of an administrative ban on oil and natural gas drilling in certain off-shore areas on Monday. The price of crude oil dropped from $147 to $129. That is a 12 per cent drop in one week. Again: more supply causes a lower price.
Strategist James Carville is looking for a compelling narrative on the high price of gas. Instead of looking for a story the Democrats should take action to increase the supply. It will work again. But a narrative does not lower prices.
Ron Hebron
Lake Forest Park, WA
Friday, July 18, 2008
EJ Dionne and gasoline price reality
Here is a letter I sent to the Sea Times today:
Editor,
EJ Dionne on 7/18 authoritatively ignores the lessons of economics. It is not the magic that Dionne is seeking. It is the law of Supply and Demand - more supply of oil lowers the prices.
Dionne should read this week's news. President Bush announced the end of an administrative ban on oil and natural gas drilling in certain off-shore areas on Monday. The price of crude oil dropped from $147 to $129. That is a 12 per cent drop in one week. Again: more supply causes a lower price.
Strategist James Carville is looking for a compelling narrative on the high price of gas. Instead of looking for a story the Democrats should take action to increase the supply. It will work again. But a narrative does not lower prices.
Ron Hebron
Lake Forest Park, WA
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