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Michele Bachmann $2 Gas

August 18, 2011 by USA Post 

Michele Bachmann $2 GasMichele Bachmann $2 Gas, Michele Bachmann supporters promised that if voters elect her as president that will make gas prices that are lower than 2 and a gallon. “Under President Bachmann, gasoline will come down and 2 a gallon again,” said Republican candidate to a crowd in South Carolina earlier this week. “That’s going to happen.” That sounds great on the premise – that does not want cheaper gas?

But in reality, the gas and 2 a gallon may not be best for the U.S. economy. Bachmann told the crowd that the costs of gas and only 1.79 per gallon, when Barack Obama became president, and blamed the high price jump at the pumps. (According to AAA, the national average for a gallon of gasoline as of Thursday was 3.58 and for a tank of regular.)

But there is much wrong with the statement by Bachmann. On the one hand, and the figure 1.79 is what the cost of gas when Obama was elected president in December, had not even been inaugurated.

Secondly, and most importantly, cheap price for gas that occurred during one of the worst economic periods in this country. Of course, gas was cheap, but the bubble burst and the stock market had been under siege.

“Be careful what you wish for, because the recipe for cheap prices these days is an economic disaster,” said Tom Kloza, chief oilanlyst at the Department of Petroleum Price Information, the Los Angeles Times. “If we go down and 2 per gallon, which probably means that there has been a lot of loss of wealth and are in a period of deflation.”

Bachmann did not go into details on how to reduce gas prices, but mentioned the increasing development of oil in Western countries. U.S. has limited the development of oil in recent years, but even if it did increase the oil production is unlikely to have a major immediate impact on oil prices.

The price of oil is linked to world oil prices – not just the amount of oil the U.S. can produce. So even if the country could begin to exploit the oil reserves, is unlikely to have a major impact on world oil prices.

Ultimately, the statement by Bachmann that will lower gas prices may attract consumers who feel their wallets are getting smaller after a trip to the gas station.

But if consumers were smart and looked at the price of gas a little – they would realize that it is much better than gas prices between 3 and 4, and – as they are at all times – and in the 1.79 per gallon was in 2008. Unless of course, we all like another economic recession in the U.S.

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