This article discusses the social and economical impact of Obama's plan to end the subsides for oil and gas companies. He asked Congress on Thursday to end $4 billion in subsidies for oil and gas companies and promised to tackle the country’s long-term energy issues while shunning “phony election-year promises about lower gas prices.” He said, “You can either stand up for the oil companies, or you can stand up for the American people. You can keep subsidizing a fossil fuel that’s been getting taxpayer dollars for a century, or you can place your bets on a clean-energy future.” Obviously with the presidential election coming up, he knows what the Republican candidates are going to say about this and he attacks, “anyone who tells you we can drill our way out of this problem doesn’t know what they’re talking about.” The Republicans have already noted that the proposal was unlikely to help lower the price of gas at the pump. In fact in New Hampshire this past Thursday, Obama scolded the Republicans who he said was hoping to gain political advantage from the rise in oil prices. “Now I know this is hard to believe, but some politicians are seeing higher gas prices as a political opportunity,” Obama said. “You’re shocked, aren’t you? And right in the middle of an election year. Who would’ve thought?”
Considering the fact that the United States consumes more than 20% of the world’s oil supply while having only 2% of the world’s oil reserves, I agree with Obama's statement “we can’t rely on fossil fuels from the last century.” We have find alternate resources NOW. I am in favor of higher gas prices because I know in the long run it will force us as a society to find alternate resources. Also, ending subsides on oil/gas would affect our deficit. Our deficit is a global issue since we are depending on other countries (example: China) to buy US bonds and invest in our country, which depreciates the value of the dollar. Eventually this would lead to higher exports since the dollar is weaker, and more countries would prefer to buy US goods and services. If Congress passes this bill, it is a big step that will have initial negative side effects (which the Republicans will hone in on) but will be better in the future of our country.
http://www.nytimes.com/2012/03/02/us/politics/obama-calls-for-an-end-to-subsidies-for-oil-and-gas-companies.html?_r=1
Considering the fact that the United States consumes more than 20% of the world’s oil supply while having only 2% of the world’s oil reserves, I agree with Obama's statement “we can’t rely on fossil fuels from the last century.” We have find alternate resources NOW. I am in favor of higher gas prices because I know in the long run it will force us as a society to find alternate resources. Also, ending subsides on oil/gas would affect our deficit. Our deficit is a global issue since we are depending on other countries (example: China) to buy US bonds and invest in our country, which depreciates the value of the dollar. Eventually this would lead to higher exports since the dollar is weaker, and more countries would prefer to buy US goods and services. If Congress passes this bill, it is a big step that will have initial negative side effects (which the Republicans will hone in on) but will be better in the future of our country.
http://www.nytimes.com/2012/03/02/us/politics/obama-calls-for-an-end-to-subsidies-for-oil-and-gas-companies.html?_r=1
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