Gasoline Witch Hunt
Apr/27/11 01:12 AM
Much like 2008, we find ourselves witnessing another gasoline witch hunt. President Obama recently ordered the Justice Department to investigate the seemingly endless increase in gasoline prices at the pump for fraud and manipulation by everyone’s favorite villain: speculators.
Once again, though, it’s nothing more than a political ploy. President Obama recently lamented to the well-heeled attendees* at a fundraiser out in San Francisco that his poll numbers rise and fall with gas prices. And who can blame voters? I certainly don’t like the fact that it costs me over $80 to fill my car ever week down here in Virginia where prices are even below the national average. But the fact of the matter is that the President has little, if any, control over the price of gasoline- at least in the short run.
As long as crazy dictators continue to be threatened by their weary people in the Middle East, the markets will push the price of oil up. After all, removing and transporting that oil has become more dangerous and uncertain, while there could be major disruptions in supply at any moment if a group decides to take an oil field or block a port. Hence, higher prices. Also, the dollar continues to plummet in value. A cheaper dollar buys less oil. Again, higher prices. The President cannot easily control either of these market drivers, which must be incredibly frustrating to him.
Ironically, the one concrete plan he has proposed this week will likely result in even higher prices for consumers. He wants to reduce or eliminate the billions of dollars in federal subsidies that oil companies receive in the U.S. and put that money towards reducing the deficit. Again, he’s simply trying to brush all the current political issues on the minds of voters with the deficit being among the most heavily discussed. But, once again, we have nothing more than sound-bite. Now, I’m not defending these subsidies. Neither is Speaker Boehner. But, the issue certainly isn’t going to lead to lower prices at the pump any time soon.
So, will voters fall for the bait? I don’t think so. Voters, though largely ignorant (not meant in a demeaning way- see Wikipedia article on rational ignorance), are smart enough to see turmoil in the Middle East on the news and understand that the situation over there drastically affects prices at the pump, not some dorky number-cruncher “manipulating” the markets in his gray cubicle.
Will they continue to blame Obama? Probably. This is just one issue in a line of many for which voters hold the President accountable, including health care, unpopular wars, unemployment, etc. It’s a lot easier for voters to lump gas prices together with these issues and hold it against Obama than it is for them to believe that his investigations will have any meaningful effect on the cost of filling up our beloved trucks and SUVs.
* Who certainly don’t worry about the cost of filling their Bentleys, Teslas, or Prii (Wikipedia claims the plural of Prius is Prii. If Wikipedia says it, it must be true.)
Once again, though, it’s nothing more than a political ploy. President Obama recently lamented to the well-heeled attendees* at a fundraiser out in San Francisco that his poll numbers rise and fall with gas prices. And who can blame voters? I certainly don’t like the fact that it costs me over $80 to fill my car ever week down here in Virginia where prices are even below the national average. But the fact of the matter is that the President has little, if any, control over the price of gasoline- at least in the short run.
As long as crazy dictators continue to be threatened by their weary people in the Middle East, the markets will push the price of oil up. After all, removing and transporting that oil has become more dangerous and uncertain, while there could be major disruptions in supply at any moment if a group decides to take an oil field or block a port. Hence, higher prices. Also, the dollar continues to plummet in value. A cheaper dollar buys less oil. Again, higher prices. The President cannot easily control either of these market drivers, which must be incredibly frustrating to him.
Ironically, the one concrete plan he has proposed this week will likely result in even higher prices for consumers. He wants to reduce or eliminate the billions of dollars in federal subsidies that oil companies receive in the U.S. and put that money towards reducing the deficit. Again, he’s simply trying to brush all the current political issues on the minds of voters with the deficit being among the most heavily discussed. But, once again, we have nothing more than sound-bite. Now, I’m not defending these subsidies. Neither is Speaker Boehner. But, the issue certainly isn’t going to lead to lower prices at the pump any time soon.
So, will voters fall for the bait? I don’t think so. Voters, though largely ignorant (not meant in a demeaning way- see Wikipedia article on rational ignorance), are smart enough to see turmoil in the Middle East on the news and understand that the situation over there drastically affects prices at the pump, not some dorky number-cruncher “manipulating” the markets in his gray cubicle.
Will they continue to blame Obama? Probably. This is just one issue in a line of many for which voters hold the President accountable, including health care, unpopular wars, unemployment, etc. It’s a lot easier for voters to lump gas prices together with these issues and hold it against Obama than it is for them to believe that his investigations will have any meaningful effect on the cost of filling up our beloved trucks and SUVs.
* Who certainly don’t worry about the cost of filling their Bentleys, Teslas, or Prii (Wikipedia claims the plural of Prius is Prii. If Wikipedia says it, it must be true.)
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