Gasoline and diesel prices have escalated to a point where they are seriously impacting the general economy. Combined with the collapse of the real estate and mortgage loan markets, they have put us on a path to recession. What can or should the government do to protect the public?
The answer seems to be very little with respect to real estate. It must find its own level. But gas prices are something else. The fact that the big oil companies are making record profits while the public is straining to pay record prices at the gas pump shows that something is out of kilter. Market conditions are not controlling prices, speculators are, and common sense tells me that the big oil companies have a heavy hand in that.
Why do we allow rampant speculation in this segment of the energy market anyway? Why should gasoline be treated differently from natural gas? Both are essential commodities. Gasoline should be regulated like other public utilities.
I am a capitalist, but unfettered capitalism is not always in the public interest. A hundred years ago President Teddy Roosevelt stepped in to protect the public from the robber barons. We need a president like TR today!
Tags: big oil, gas prices, public utilities, recession, Teddy Roosevelt
