After speeches the last three weeks (reported here,here, and here) on why he isn’t to blame for high gasoline prices, I thought President Barack Obama would be moving on to other issues. But in a sign of how desperate the White House is becoming about the threat gas prices pose to the President’s re-election, the President on Thursday, 15th March, gave yet another speech on the topic.
At Prince George’s Community College in Largo, Maryland, a few miles east of Washington, D. C., Mr. Obama took credit (completely undeservedly) for increasing domestic oil production, but then argued that increasing oil production won’t solve the problem of high gasoline prices. According to the President, the only lasting solution is to continue pouring taxpayer dollars into subsidizing alternatives to oil. Once we replace gasoline and diesel with other fuels, then we will have solved the problem of recurring spikes in gasoline prices.
The problem with the President’s argument is that the alternatives are likely to cost more, not less, than the oil they are replacing. That is certainly the case with ethanol. And hybrid electric vehicles still take many years of gas savings to pay for their much higher prices.
President Obama lashed out at those who disagree with him: “If some of these folks were around when Columbus set sail, they must have been founding members of the Flat Earth Society. They would not have believed that the world was round.”