This article basically addresses Obama's view on the price of gas at the pump. The article also states some of the statements he made during a speech he gave at the University of Miami in Florida. He used that opportunity to attack and rebuttle the comments made by the Republican candidates. Obama advocated for an exploitation of domestic oil and gas resources, as well as the fact that the US should end its subsidies to oil companies, which would make the power grid more efficient and force investment in new energy sources. He also said that there were no "quick fixes" that would bring fuel prices down since oil prices are subject to global events. Some analysts say that high fuel prices could also dampen the fragile economic recovery by increasing overhead costs for households and businesses and dragging down consumer spending. They also say that, "Some experts have said that the US economy could begin to suffer if fuel prices rise above $4 per gallon."
I would like to challenge the last statement of the article: "Some experts have said that the US economy could begin to suffer if fuel prices rise above $4 per gallon." I know from my economics class that the economy is already suffering. While its true that we are in a growth recession, it does not mean that our economy is recovering; in fact, the gap between potential real GDP and our current level of output is widening. And this is happening even when prices are below $4 a gallon. So, I do not agree with the last statement. I do agree with Obama when he mentioned that there is no "quick fix", oil prices are subject to global events and it is necessary to find another energy source. I have no idea how and when these changes will be made to our society, but they are necessary to providing us and the younger generations a fuller life.
http://www.bbc.co.uk/news/world-us-canada-17149601
I would like to challenge the last statement of the article: "Some experts have said that the US economy could begin to suffer if fuel prices rise above $4 per gallon." I know from my economics class that the economy is already suffering. While its true that we are in a growth recession, it does not mean that our economy is recovering; in fact, the gap between potential real GDP and our current level of output is widening. And this is happening even when prices are below $4 a gallon. So, I do not agree with the last statement. I do agree with Obama when he mentioned that there is no "quick fix", oil prices are subject to global events and it is necessary to find another energy source. I have no idea how and when these changes will be made to our society, but they are necessary to providing us and the younger generations a fuller life.
http://www.bbc.co.uk/news/world-us-canada-17149601
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