Who's to Blame for High Oil Prices?

Stefan M.I. Karlsson / LewRockwell.com:
The long-term solution is to reduce or abolish taxation on oil production and to abolish all regulatory restrictions (whether motivated for environmentalist reasons as in the U.S. or nationalist reasons as in Mexico) on oil drilling. Opponents of drilling often reply to this that it won’t provide any short-term relief. But while that is true, but there won’t be any short-term relief without drilling either and the point of drilling is to provide long-term relief. Moreover, their preferred solution of having the government invest in research to invent more so-called renewable sources of energy is likely to take even longer to provide relief (if it ever provides relief). To provide short-term relief, different solutions are needed. This means, for example, that the U.S. government should start releasing the oil held in the so-called Strategic Petroleum Reserve, while the Fed should stop its inflationary policies.

Posted by Editor at June 28, 2008 09:28 AM