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Government and Gasoline

Recorded on June 2, 2011

From The Heritage Foundation, I'm Ernest Istook.

As high gasoline prices stress our family budgets, most Americans realize how suppressing domestic drilling raises prices. But here is another way our government is the culprit; you’re paying an extra 56 cents per gallon because of what the Federal Reserve System is doing backed by the Obama administration. A congressional study documents this.

The fed calls it QE2, a fancy term for printing money that is used to finance the deficit.  Since oil is bought on the world market, it takes more devalued dollars to buy each barrel which flows through to the price of gasoline.

 It’s not mid-east turmoil, it’s not speculators, it’s not higher demand in China, India, or anywhere else. 56 cents a gallon is the result of government policy to devalue our dollar. It’s time for Washington to quit blaming others and start accepting the blame.

From The Heritage Foundation, I'm Ernest Istook.