Report on Fictional Economic Presidential Address to the Nation

The Presidential Economic Address to the Nation

Oil crisis was the primary theme of the president 's statement released earlier this evening as the continuing escalation of oil prices is threatening to cripple the automotive industry and the economic status of the country as well . The president discussed over the media a four-point plan to address this issue . Momentary repeal of excise taxes on gasoline , delay of plans to phase-out Methyl Tertiary Butyl Ether or MTBE as gasoline additives , tapping of heating oil reserves , and the continuity of agriculture subsidies are major

headings in the four-point plan . The president has also asked for support from the people as he instigates his plan of action with the intentions of relieving the country from crisis . However , the subsequent event that may result from this plan is questionable . It is uncertain if the four-point plan is an efficient means to alleviate oil crisis in the country

Excise tax also known as user fee is allocated for the development and maintenance of public roads and highways to improve traffic obstructions and prevent highway accidents (NSSGA , 2006 . Part of the excise tax is conserved as funds for plans and of building cost-effective transportation infrastructure in the future such as bridges , trains , and the like (API , 2007 . Revoking collection of excise taxes would compromise the quality of public roads and highways and public safety Moreover , repealing excise taxes would lead to an increase in gasoline consumption . Doing so would lower the cost of gasoline purchase , thus encouraging the people to consume more gasoline despite the decline in oil supply . On the contrary , the increase in excise tax would deter consumers from purchasing gasoline , consequently allowing time for the regeneration of oil supplies worldwide . This alone , may solve the oil crisis that the country is undertaking

Methyl Tertiary Butyl Ether or MTBE is a gasoline additive used to meet the standard requirements of the 1990 Clean Air Act Amendment . However the long-term use of MTBE has placed people in great danger . MTBE has contaminated the groundwater supply of the country putting the health conditions of people at risk . Ethanol replaced MTBE as a gasoline additive shortly after the damaging effects of MTBE was researched and documented (EPA , 2007 ) The continuation of the use of MTBE as the primary source of gasoline additive would pose serious harm to the people and result to grave damages . Reparations to be provided for the damage caused by MTBE to the afflicted would only lead to an increase in expenses . For these reasons , delaying the phase-out of MTBE is unacceptable . Tapping heating oil reserves all over the country would not alleviate , but otherwise aggravate the current crisis in the country . Repealing excise tax , combined with the consumption of oil reserves would only result to a decline in national oil supply . Cheaper cost of gasoline through the cancellation of excise taxes would lead to a doubled rate of gasoline consumption , consequently leading to the decrease in oil supply . If in any way , doing...