Free Markets and the Price of Oil

About seven years ago natural gas was around $12.  Now it’s trading around $4.00.  What drove this dramatic price drop while oil was rising in price.   One answer, free markets.  The natural gas resources are here in North America, and the drillers were not restricted to explore and develop those reserves.  The drilling created an abundent supply of gas, thus driving down the price.  At the same time, the Obama administration and the anti-oil crowd has restricted drilling for oil here and is making us more dependent on foreign supply.  If we want cheap oil, all we need to do is follow the example of natural gas and the price will be driven down by market forces, not by government.

More Jobs going to China

It was announced yesterday that NIKE will be building another corporate campus in China rather than expanding their Beaverton, OR headquarters.  I wonder how many land use permits they had to get in China?  How about resrictions on employment and requirements for medical insurance.  It’s too bad that great American companies feel it is easier to do business in China than here at home.  Say good bye to all the constructions jobs lost to build the new campus as well as the 1,000+ new middle-class jobs that will be filled by Chinese rather than Americans.  Mr. Obama, shame on you.  If Ron Paul were President, the restrictions would be removed and employment would grow.