Rising oil prices threaten to implode the American economy. The unrestrained increase of oil prices hurt businesses and increase the trade deficit, causing foreign investors to unload dollar-denominated investments. Eventually, this will lead to the downfall of the American economy that Alan Greenspan warned us of in 2004, at the start of the oil price surge. If oil prices are not decreased, the American economy will collapse and millions will find themselves jobless.

Rising oil prices have always hurt American businesses through increased transportation and shipping costs. In addition, they discourage consumer spending. Wal-Mart, for example, has been at a steady decline since 2004 when the oil prices surged, causing decreased revenue and share prices to drop by 25 percent. In response, the company has had to lay off millions of employees.

As American businesses suffer, foreign investors will lose interest in dollar-denominated investments. Adding to this effect is the increasing national trade deficit caused by rising oil prices. Oil, unlike other commodities, is imported from refineries located outside the country. So essentially, money that is spent on oil is siphoned out of the American economy, increasing our national trade deficit. Furthermore, rising oil prices have caused inflation.

In the United States, a 4.2 percent increase in energy costs increased the Consumer Price Index by 0.6 percent, compared to 0.2 percent in September 2005. As American companies suffer and the trade deficit balloons, foreign investors will shy away from American investments, causing foreigners to unload U.S. stocks and bonds, sending their prices plunging and interest rates soaring, leading to a nationwide recession.

If rising oil prices are not lessened, the American economy will be thrown into a state of disarray. However, our government has been unable to pass any legislation to help ease this problem because of pressure from the population for immediate relief. This has resulted in several tax refunds of inconsequential amounts to the American consumer that have neither stimulated the economy, nor lessened the trade deficit and revenue loss for businesses. Congress cannot keep sidestepping this problem, it must deal with oil prices directly through subsidization, not tax refunds.

—Additional reporting by Eric Johnston