We must lower our dependence on foreign oil.

Who said it?  Answer: Every politician running for office.  Each has a specific plan for how to achieve that goal and don’t you worry, because none of them will affect you, Mr/Mrs Voter.  No sir, this politician will do it all and you won’t have to pay a dime.

I’m not an economist.  And, as much as I’d like to be the President without putting any effort into it, I doubt that I’ll get elected.  That scratches politician off of the list of things that I am.  So, going into this post, you immediately know that I have no basis on which to build my theory…but that won’t stop me from trying.

Let’s assume for a moment that we all want to lessen our dependency on foreign oil.  How do we do it?  Drill more?  Refine more?  Burn coal more?  I have an idea…but it ain’t pretty.

canned

Did you know that I can put captions on a picture?

Part 1: Let’s start with a look at automakers.  Simple economics indicates that automakers will not make any drastic increases in fuel efficiency unless the market requires them to.  Research and development is an expensive process.  If consumers are continuing to feed high amounts of profit based on technology that is decades old, then why change?  (answer: they don’t…obviously)  The government is forcing automakers to take small steps to increase fuel economy, but they’ll only do the minimum required to meet the regulations or maybe just a bit more to gain market share.  If we (Americans) want to see cars that get exponentially higher mileage, the we (the consumers) have to demand it by using our wallets.  Companies will continue to meet the government minimum if we keep buying the government minimum.  So here’s your obvious step that most people would agree on…don’t buy crap.  Demand something better.  But this one is tough to make happen.  Unless you incorporate part 2…

econ

Seriously...any picture I want. I just type, type, type, and Voila, captions appear. I wish I would have figured this out earlier...

Part 2: We completely eliminate any concept of controlling gas prices.  Let those prices skyrocket, baby!  Before anyone complains too much about “rights” I should point out that there is no constitutional right to affordable gas.  But what about the poor, the needy, the 1974 Chevrolet trucks…how will we afford gas for all of these?  You won’t.  And that is the key.  If the government steps in and makes gas “affordable” then there’s no financial incentive for the average person to conserve.  Sure, some will do it out of environmental consciousness, but for most, if it’s not a pain in their pocketbook, it won’t bother them to waste.  If gas prices start to get higher and higher, then most people will be forced to conserve.  At a minimum, people will begin evaluating and modifying their driving habits.  Realistically, consumers will start to make a push for higher-efficiency vehicles and/or alternate fuel vehicles.  Then, all of a sudden, we have the ears of the automakers.  As higher-efficiency or alternate fuel vehicles roll out to the masses, demand will drop and as a result so will the gas prices.

But here’s the rub…there has to be a short-term period where people expect to have higher gas prices.  If gas were to go up to $8 a gallon, there would be a humongous outcry from the public.  “I WANT MY CHEAP GAS!”  No, what you want is to pay less for your commute.  There are ways to do that without paying fewer dollars per gallon.  (Be creative…I’ll bet you can figure a few out all by yourself.)  If gas prices increase enough, American consumers will become less dependent of foreign oil out of financial necessity.

My problem recently has been the fact that the politicians have all said that we need to be less dependent on foreign oil, and they’ve turned around and talked about decreasing gas prices.  NO!  You’re shooting yourself in the foot.  Let the prices go up and watch the entrepreneurs come out of the woodwork to find a way to help us out.

So waddya say?  Who’s with me?!  Who wants to pay more for gas so that we can pay less for gas?!!

I also have an idea on how we can get out of this economic crisis that we’re in now, but you might be able to figure out where I’m headed with it.

*Images from Flickr.com