Supply Side Oil Economics


Bush's foreign policy fiascos are not what is causing high gas prices. It's his screwed up domestic policy. The problem is not what he did to disrupt supply (eg the war). It is what he did to boost demand
(offshoring.)

Under Bush, outsourcing of American production to Asia has been unprecedented. This has created a huge middle class in these countries. The first major purchase of a middle class family is a car. Once they have a car, they will drive it and keep its tank full.

Middle Eastern supply of oil has not really changed. The big change is in demand from China and India. This is a fundamental shift in global economics that should not turn on a dime.

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