Gas is falling… because of Republicans?
Anyone that drives a vehicle has seen the sudden drop in gas prices. And anyone that follows financial markets knows this is because of how fickle the global oil market is. It goes up when anything threatens the supply of oil. That can be terrorism, weather, geopolitical tensions, mechanical failures… anything.
Many people believed that the oil prices had risen too high, too fast. Many Democrats believed that they should investigate oil companies and sue their asses, or institute “windfall profit” taxes, or other such nonsense. But what happened in the end? The threats have subsided enough that the market price has fallen back down to levels that are appropriate for today. The next hurricane that heads towards the gulf, or the next pipeline shutdown, or the next time Iran utters the words “nuclear program” will send it right back up.
But BuffaloPundit thinks he has this one all figured out.
Let’s see.
It’s September.
November general election is what, 6 weeks away?
Gas prices have been screwing people for quite some time – since before Katrina they’ve hovered at or near $3.00/gallon. That plus the intractable Iraq war has put loads of Republican
power hungry, lobbyist-ass-kissing, pork-issuerscongressmen in danger of losing their seats.Miracle of miracles, gas prices are falling faster than Joel Giambra’s chances at political revival.
How conveeeeeenient.
I like Alan, and I respect his views on a lot of things, but this might just be the most ludicrous statement I’ve ever seen him make. To put it in terms that even every liberal would understand… that’s giving the Republicans WAY WAY WAY too much credit. I mean, if Republicans had that kind of power, wouldn’t they have just kept dropping oil prices all throughout the war to justify our being in Iraq? If Republicans were responsible for the price of gas dropping, they’d be shouting that fact from every media outlet, all day, every day. They’d probably launch Fox News 2 just for that purpose.
Alas, the Republicans have no more control over the price of gasoline than the Democrats have over enforcing a “living wage”. It’s all supply and demand.
Modern liberals just don’t understand economics, in their dreams they believe that bureaucrats can push buttons and make prices rise and fall on demand, when in fact when they try to control the market, pushing either button only makes prices rise real fast!
Take a look at healthcare and education for instance.
The U.S. oil industry may be far from a true free market with it’s over regulation that deters the oil companies from building new infrastructure like refineries and such, but at least the American pols can’t control the world market price for crude.
When one has a government whose top bureaucrats (read: Cheney) conduct secret meetings with energy companies such as Enron and oil companies within months of its accession to office, one has a right to be a bit suspicious and question situations such as this that just have unbelievably fortuitous timing.
I never insinuated that republicans or Rove are manipulating oil or gas prices. But I sure as hell don’t put it past the oil companies, which have profited historically under the Bush administration.
I think that new baby must be causing sleep deprivation induced conspiracy theory halucinations. 🙂
Neither Cheney, nor Rove, nor Republicans, nor American oil companies set the global price of crude, which has been the sole, unmistakeable influence on the price of gasoline. Supply and demand, even when it’s only perceived supply, can be a bitch.
Amen Derek!! I really don’t get how Democrats can fail so miserably at basic economics. I really do think that they would be more at home in a socialist society. I’m serious! The government shouldn’t be involved in oil whatsoever – or any business for that matter! Leave us alone…
And I even think Bill O’Reilly was completely stupid for wanting to have hearings into “who” controls the price of oil and the “gouging” that took place. He was absolutely convinced that a single person or entity was controlling prices. Ludicrous!
You should check out this I posted on my blog last year after Katrina:
http://cwhisonant.blogspot.com/2005/09/oil-shortage-after-katrina.html
Is supply any different today than it was in 2003?
Yes. US production is down and global demand, most notably from China is up.
Alan has a valid concern in the fact that some government officials have close ties to the oil companies, but that doesn’t mean there is collusion to manipulate the price of crude oil. Oil being a important resource for both the private sector and the government, there is a natural concern about supply. And the oil industry being a major cash cow for the government treasury is certainly a concern, god forbid they would lose their damn tax revenue. (The government makes far more revenue from oil that the oil companies do.)
It’s ironic though that progressives are so concerned with government collusion with business, when they have been the champions of things like anti-trust laws and environmental laws. There is no doubt there are some oil men who like government regulation to limit supply and make things more difficult and more expensive for their smaller competitors and potential start-ups. Liberals don’t see things that way, they falsely believe that government regulation enhances competition and protects the consumer.