FITE Newsletter #21: Bush Tax Cuts and Outsourcing Cause Increased Gas Prices
Gas prices are increasing and show no sign of slowing down. Some experts predict that prices will increase to $3.50 by the end of the summer. People are getting so upset that even Bush supporter Bill O’Reilly of “The O’Reilly Factor” talk show said the other day that it could would be a good reason not to vote for Bush. The prez, he says, should tell us why it’s happening.
As they say, be careful what you wish for. If Mr. Bush told us the truth, he would certainly lose the election. That’s because the increasing price of gas is in part his own fault. The problem is the giant tax cuts for the rich which have put our grandchildren in deep debt. Since international investors don’t like holding the currency of financially irresponsible countries, the dollar has declined quite a lot over the past two years, exactly during the time that Mr. Bush started to give the giant tax cuts that have put our country so deeply into the red.
Another reason for the dollar’s decline is the outsourcing the ultra rich insist is both inevitable and a good thing for the country despite lots of evidence to the contrary. (see here) American corporations pay dollars for the goods and services they import, but these countries don’t return the favor by buying a similar amount from this country. This in turn reduces demand for the dollar, further depressing its value.
High gas prices aren’t just bad for drivers. Oil price spikes have ALWAYS signaled recessions, so the economy won’t bring us any good news this fall. This makes it a certainty that Mr. Bush will have to run on other issues, despite the most recent employment statistics.
For more information on high gas prices, see the op-ed section of our home page, Fairness in Taxes.