What do the government do (Government Intervention) to handle the high price of oil ?

all i know is subsidize.


think ';economically';What do the government do (Government Intervention) to handle the high price of oil ?
This is a question of capitalism versus socialism. Capitalism meaning the free-market enterprise system or socialism meaning government intervention.





Some members of our government feel that taxing the profits of oil companies will bring down the pricing. In actuality, it will drive the oil companies to stop doing research and development.





The solution is quite simple. Allow for drilling in ANWAR, off-shore drilling, convert coal shale to oil, encourage nuclear energy, solar energy, and wind energy.





The technology is here to allow these endeavors to continue without harming the environment. We decrease our dependency on foreign oil, increase our technology, create jobs here in America, trade with other countries to drive down the price of oil per barrel.





If government intervenes, then be prepared for long gas lines and higher prices. Competition is the key.





Hope this helps.





Mayor David Casiano


Town of Parker, ColoradoWhat do the government do (Government Intervention) to handle the high price of oil ?
Developing countries where much of the population can not pay world market prices often subsidize oil because they fear that high prices would stunt their economic growth. By contrast many industrialized nation place heavy taxes on oil because they think that the importation of oil stunts their growth and their population can afford to pay market prices. Both subsidies and taxes serve to shield the economies from the shocks that occur when oil prices increase rapidly like the US economy is now experiencing. If gas is six dollars a gallon the increase to eight requires less adjustment than that the doubling of prices from 2 to 4 that is happenening in the US.
The only way a government can positively impact the long run price of oil is to support scientific research to find an alternative fuel source. Subsidies decrease the pump price of oil, but increase the effective price of oil more than they decrease it. The reason is that if oil were at $1 per gallon and government decided to give people 10 cents per gallon purchased, the oil companies would increase the price to $1.10. Likewise, if governments paid oil companies to expand, increasing the supply, the companies would only do so because it was profitable, and so would not expand as much as the governments would like, keeping some of the money. The price may fall to 91 cents, but at a cost of 10 cents in taxpayer monies. So you save 9 cents by paying 10 cents. Not so bright because it transfers the cost into taxation.





Telling people to economize is silly, people already do that to the extent they must. It just tells people to keep doing the same thing.
Subsidize for alternative energy R%26amp;D and its popularization. If we become less and less dependent to fossil fuels than the more we will be affected by the soaring price of oil. And lastly, the old law of supply and demand will make the oil price going down. Imagine everybody adopt the green lifestyle. Use less energy. Practice high thinking low living. Socrates once stands in front of a shop and said to himself, ';How many, things that I don't really need.'; Slow down the process of producing and consuming. I think the government can do many things to support this vision.
they are tryingt o help the peple but they are doing too little too late and they are trying and they can keep going and will i am sure. it will wrk eventually and we'll be there to wake up and take the slack.