Hope You Liked That $4 Gas

Okay, boys and girls, settle into your seats for a quick lesson in Remedial Economics from Professor Dave. Be ready to take notes, there may be a pop quiz later.

First, a little background:

You may recall that in the summer of 2008, before the last general election, gas prices passed the $4 per gallon mark. This understandably caused quite a ruckus among consumers, and we beseiged our representatives in government with demands that something be done to correct the situation.

With an election looming on the horizon, liberal Democrats (and their RINO buddies) reverted to their standard election year schtick: making whatever noises they thought the voters wanted to hear, with no intention of ever actually following through.

Suddenly, the very legislators who have continuously blocked opening up federal lands for energy exploration were all on board the "drill here, drill now" express. The voters are upset - gas prices are too high - so let's put on a show!

Everyone from House Speaker Comrade Pelosi to the lowliest junior Rust Belt congressman was suddenly barking about energy independence. Democrats brayed in loud TV sound bites about lifting the congressionally-imposed ban on offshore drilling that has been in effect for decades, and which has hampered our domestic energy production.

And we the people, being the gullible dunces we are, once again bought it. Liberals were swept into power in 2008, and given total control of the government. It reminds me of Lucy holding the football for Charlie Brown. For some reason, poor old Charlie Brown always tells himself that THIS TIME Lucy will do the right thing.

Have we heard a peep out of Democrats in Congress about increasing our energy production since they won the election? That answer would be NO! Liberal politicians never intended to follow through on those snake-oil campaign promises. Imagine that.

So, boys and girls, back to our economics lesson. Though some people say that the only sure things in life are death and taxes, I feel confident in adding a third: the law of supply and demand. If supply exceeds demand, prices fall. If demand exceeds supply, prices rise.

(This principle is too simplistic for sophisticated Ivy League Liberals to grasp, but trust Professor Dave on this one, it is a cold hard fact of life.)

Early last year, before our economy took that nose-dive into the Great Recession, we had shared in several years of robust growth in the global economy. Business was booming all over the world, and especially with the Indian and Chinese economies growing by leaps and bounds, demand for oil and refined petroleum products was at an all-time high. Supplies were being squeezed. Prices were rising accordingly.

In the U.S., demand for gasoline had grown to the point that our domestic oil refineries could not keep up, and we were forced to import gasoline from foreign refineries. (We can also thank liberals for the fact that we have been unable to construct a new oil refinery in this country in the past 25 years.) Under those circumstances, why was anyone with an IQ above room temperature surprised that prices would rise?

It's all about supply and demand. Demand was higher than supply, so we paid through the nose for our gasoline.

But as events unfolded, and the Great Recession of 2008-2009 cooled down the global economy, the world's demand for oil plummeted. Oil reserves grew while demand kept falling, and we witnessed the inevitable result: gasoline prices fell 50% in less than a year. Last spring, prices in central Indiana were down to around $2 per gallon.

So we all fell asleep at the switch. Minus the prodding of public pressure for action, liberals in Congress reverted to their default mode of stifling our domestic energy production. All of those campaign promises about energy independence were wiped off the table, and since gasoline was cheap again, most of us didn't pay much attention.

For some reason, it has not dawned on the majority of us that the only reason gasoline prices dropped was because the economy was in the toilet, and that as the economy begins to recover and global demand rises, we will be back to record high oil prices in the very near future.

The global demand for energy will keep growing, and unless the supply grows with it, we will be sending billions more of our dollars (and hundreds of thousands of energy-sector jobs) to our friends overseas like Hugo Chavez and the Mullahs of Iran.

Thanks to the inaction of our government, we are stuck in exactly the same vulnerable position that we occupied two years ago. We are constrained from developing and expanding domestic energy production, and forced to purchase the lifeblood of our economy at premium prices from unstable foreign suppliers, many of whom don't like us very much.

Unless we change direction, we'll soon be filling up with some more of that $4 gas. Shucks, if we throw in a little Obama-stimulus-induced inflation and a hiccup in the Middle East we might even get to see prices of $5 or $6 per gallon.

And since this is just a Remedial Economics lesson, we won't even begin to discuss the obvious national security dangers of depending on hostile nations to supply us with the fuel that we need to survive.

Our only hope is to move aggressively towards energy independence. We need to unleash the brains, brawn and capital of the domestic energy companies that can make that goal a reality. We need to demand that our government get on board the energy express, or at least get out of the way.

Repeat after me: "Supply and demand. Supply and demand."

Class dismissed.