Another Myth

Though I am only 17 (only a few months until I am 18!), I have come to the realization that most liberals are poorly educated in economics. As a future business major, I see that as quite amazing and disturbing.

A very clear example of this problem is the gas prices. I have been noticing all the “Record Oil Prices” headlines that the liberal media has been spewing out lately. In addition, you see how these record prices are dangerously high, and that they might mess up the airlines industry, trucking industry, etc.

However, we must take note that something is not adding up. If the oil prices really are at record highs, why did the stock market not crash? Why have not all the airlines declared bankruptcy, why do we not have lines at the gas stations (1970s style), why is it that consumer confidence did not plunge, and why is it that American’s increased their driving habits over the 4th of July this year if the gas prices are worse than the Energy Crisis?

The reason we are not on the verge of economic collapse is because we are not on the verge of economic collapse. The oil prices are actually not at record highs (gasp!). How could this be? To the conservative, this is easy. To the liberal, this is beyond comprehension.

The reason the prices are so high, and yet are not damaging, is because of our little friend, inflation. Liberal reporters for the New York Times have forgotten their economics classes.

For example, oil and gas may cost more now than they did 25 years ago, but the money we use to buy these commodities is not worth as much. In fact, if we measured in constant 2005 dollars, oil hit $90 a barrel in 1981 and rose to a price of over $3 per gallon. When oil hit those numbers back in the early 80s, that was when the real record was hit. As you can see, we are not near that record, and never have been since the early 80s.

Of course, the oil prices are higher now than in recent years, and of course this is a drain on the economy. However, this is not the utter doom that the liberals are trying to make it out to be.

Once again, it just goes to show you that you simply cannot trust the media anymore. Granted there are good reporters left (Pat), but the majority have a bias and either lie about the facts (New York Times trademark), stretch the facts, or just forget economics.

Your favorite 17-year-old Macintosh guy,
Caleb