Energy Costs, the Mideast and Illegals Are Americans' Biggest Concerns
A recent poll on NBC's Meet the Press showed Americans are primarily concerned about the price of gas, Iran, illegal immigrants and Iraq. All four concerns are interconnected.
Gasoline has been gradually increasing in price for some months now, reaching almost $3 a gallon by the end of April, an increase of over 50 cents in two months. That's still less than 80 U.S. cents a liter. In the United Kingdom, the same gas was selling for just over one British pound per liter, roughly the equivalent of $2—or two and a half times the American price.But Americans are more dependent on gas than other nations are. This is because the United States is so spread out. The local grocery store in England is often within walking distance, while in America it is more likely to be miles away. The same goes for the workplace, school, medical facilities and places of entertainment—everything is miles away, an impossible distance to walk or even to cycle. Public transport is very limited and nonexistent in some areas.
Not only are the American people dependent on gas, they are dependent on cheap gas! Any increase in the cost of gas will inevitably have a greater effect on the U.S. economy than a similar increase would have elsewhere. In fact, since World War II a recession has followed every significant increase in the U.S. price of gas.
So it's understandable that the price of gas is the number one concern of most Americans.
What I found particularly interesting in this survey is that all four major concerns are interconnected, but none of the panel on Meet the Press mentioned this. It's as if the price of gas is somehow not connected to events in the real world.
As if to emphasize this, a letter to our local newspaper a few days later said that Washington should simply order suppliers to sell gas at $1 a gallon and then enforce the price! Clearly, not everybody is aware of the law of supply and demand.
Among the causes of the gas price increase are uncertainty over Iran and the continuing war in Iraq, numbers two and four of the primary concerns of the U.S. electorate. What happens in the Mideast largely determines the price of oil. If there are any jitters in and around the Persian Gulf, the price will inevitably go up.
Just as serious weather problems in California can push up the price of strawberries and other fruits, so problems in the Persian Gulf push up the world price of oil. The American president has no control over this. Washington can't suspend the law of supply and demand!
Mideast oil supply at risk
Before the current war in Iraq, Iraq produced 3.5 million barrels of oil a day. Now, it produces only 2 million, creating a 1.5 million barrel per day shortfall. This alone pushed up the world price of oil.
The fear of another conflict in the region, this time with Iran, is enough to send oil futures skyrocketing as buyers look to secure oil for their clients. Also in the Persian Gulf, terrorist attacks by Islamic radicals in Saudi Arabia are on the increase, causing further instability over oil futures.
There's also uncertainty in Nigeria, where local rebels disrupt oil production by frequently kidnapping oil workers. Venezuela, the fourth biggest producer in the world, keeps making anti-American noises, which only add to the uncertainty of supplies from that country. There are also refining problems in the United States, which further erodes supply.
Americans account for less than 5 percent of the world's population, but consume 25 percent of the world's oil. These disparities are unlikely to change in the near future, particularly when you consider that every year the United States adds a few more million people to its population.
Illegal immigration has become an issue recently. Estimates of the number of illegals run as high as 12 million. Whether illegal or not, immigrants are also energy consumers. Moreover, they send home tens of millions of dollars, adding to America's growing trade deficit, a major factor in the current fall in value of the U.S. dollar. This is yet another factor that could add to the price of gas.
It's understandable that people who are suffering economically should want to move to the United States, but it seems that American politicians are unwilling to consider the negative consequences of this massive movement of people.
The spreading urban sprawl is another factor, as people live further and further from their places of work, consuming increasing amounts of fuel in their daily commute.
Problems show a lack of vision
The Bible says "a prudent man foresees evil and hides himself" (Proverbs 22:3A prudent man foreseeth the evil, and hideth himself: but the simple pass on, and are punished.
See All...). "Hides himself" means that he takes steps to avoid it. Proverbs 27:12A prudent man foreseeth the evil, and hideth himself; but the simple pass on, and are punished.
See All... repeats the principle, adding another thought: "A prudent man foresees evil and hides himself; the simple pass on and are punished."
The book of Proverbs contrasts the "simple" with the "wise" throughout. A simple person is one who is immature and perhaps irresponsible. Failing to anticipate the future, the shortsighted will reap the unpleasant consequences.
America should learn a lesson from the example of its ancestor, the Old Testament patriarch Joseph. With God's help, he was able to interpret the Egyptian pharaoh's two dreams, which revealed that seven years of plenty would be followed by seven years of scarcity. You can read all about this in the book of Genesis, chapter 41.
Taking full advantage of the seven years of warning, Joseph led the nation to prepare itself for massive food shortages that lay ahead. The principle to note here is the need to plan ahead, to prepare for times of scarcity, whether it be fuel or food, or both.
Remember that even food production today is heavily dependent on cheap oil. The United States has had 30 years of warning of possible fuel shortages but is still unprepared. In an emergency, the strategic oil reserve would only provide fuel for a few months. Politicians are calling for the use of the oil reserve to bring the price down now, which defeats the purpose of a strategic reserve, for emergencies only.
The first warning of problems ahead for U.S. fuel supplies came in the aftermath of the October War of 1973, during which Arab OPEC members, angry at U.S. support for Israel, nearly quadrupled the price of oil and reduced the supply. There were long lines of cars at pumps around the world.
Over 30 years later, Americans are even more dependent on cheap gas, and additionally, the population has risen dramatically, adding to the pressures. Growth is still the nation's top economic priority, but perhaps it's time to do a rethink, to ask if the country has reached the limits to growth, at least in some areas.
It's not only fuel that is likely to be a major issue in the future. Food supplies may be also. Last year was the first year in which the United States imported more food than it exported, at least in dollar terms.
CNN's Lou Dobbs has frequently highlighted the fact that by 2020, the United States will be heavily dependent on food imports. This could happen sooner if there is a problem with the oil supply, since oil is needed in the production of fertilizers. Mr. Dobbs has been emphasizing the need to do something about immigration, because it only exacerbates the problem.
The price of fuel is a major priority for Americans. An increase in the gas price will inevitably give a spurt to inflation as the price of gas affects the price of just about everything else. Inflation will also be boosted by the falling value of the dollar, down 7 percent in April, a move likely intended to reduce America's international debt burden and make U.S. manufacturers more competitive. An added threat is the Iranian move to start pricing oil in euros. Other oil producers are likely to follow. This would also push up the price of fuel in the United States.
This world needs leaders with clear vision about how to resolve the mounting problems that face it, not the typical politicians who busy themselves with getting votes and by pointing fingers of accusation at their opponents.
Both major U.S. political parties are quick to accuse the other of being guilty of "a culture of corruption." They may be right. God foretells of our leaders, "…your princes are rebellious, and companions of thieves; everyone loves bribes, and follows after rewards. They do not defend the fatherless, nor does the cause of the widow come before them" (Isaiah 1:23Thy princes are rebellious, and companions of thieves: every one loveth gifts, and followeth after rewards: they judge not the fatherless, neither doth the cause of the widow come unto them.
See All...).
The United States is still within a time frame for action, but the clock is ticking. WNP
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