Americans are not only saddled with the financial debts of their ancestors, but also the almost unkillable parasites of old school crony capitalism.
The corrupt cab operators who indirectly pay off cities to remove Uber, Lyft, and any everyday citizen who wants to monetize their own car. In practice, they are no different than the Teamsters who, even today, conspire to keep trash prices within the exclusive hands of a legalized mafia.
There is always a price that can be paid for a loophole that keeps prices high and competition low. It's been the American way of life for a long time.
The cable and cell phone companies that, thanks to their relationships with both political parties, make Americans pay nearly three times the world average for high-speed internet. For all the billions extra that we pay these days versus the rest of the world, we have little to show for it. Even the average Greek has faster and cheaper internet than the average American.
The list of the public screwing of the average American is endless. From overpriced medications and hospital bills, to banking fees and 0% non-interest bearing bank accounts, to payday and title loans that are routinely well north of 300%.
Nothing screws Americans faster than a legalized theft cartel that controls the marketplace.
So this why I'm so glad to finally see that the price of oil is just beginning to reflect a price that isn't due to the restrictive outputs of a legalized cabal. Gas prices are headed straight for... reality, and with that, we may briefly experience, just for a short time why cheap gasoline is the best thing for America.
The math is pretty obvious for you and me. You pay less, a lot less, for a gallon of gas. If the average American couple pays the historical inflation adjusted average price for gas, $2.60 a gallon, they will save over $1200 a year compared to the price of gas six months ago.
In my world, that $100 month of difference saves an awful lot of folks from the late fees, overdraft charges, and the usurious interest rates of modern day America.
What is interesting to realize at this point is that what's good for the goose that is the American people, will be far greater for the gander that is our economy.
Let's start with the basics.
Nearly every physical good in America needs to be transported to a home or a business. Your computer. The materials that make up your home, your wardrobe, and your appliances. They all need to be transported somewhere before and after they are made.
The cost of all that freight and transport, coupled with the fuel costs that come with building the infrastructure needed to sustain the creation of all those goods, is astronomical. We're talking nearly 7 billion barrels of oil which equates to over $750 billion given the 2013 average oil price of $108.41 a barrel.
When you hear about pundits of the modern day media talk about deflation as if it's a bad thing, that $750 billion number being reduced is primarily what they are talking about.
What they fail to mention is that a $50 price dive in crude will help 90+% of the global economy, including our own.
Our GDP growth will increase by 0.5% next year if that $50 seismic shift in oil prices holds true. Even if you take into account the reduction in fracking income, we will add approximately 350,000 new jobs to the American economy.
The global economy gets about double our GDP boost (1% vs. 0.5%) while the Arab dictatorships and Russian mafia end up on the losing side of GDP growth. This is what happens when a legalized theft cartel is popped.
So congratulations! You just got a nice big fat reduction in your auto spending for 2015. Want another two or three? Well, just remember that when someone tells you that low gas prices are bad for America, you can always ask them to volunteer their hard earned paycheck to the noble cause that is the legalized cartel.