Politicians are spending a lot of time trying to convince you that the other one is responsible for high gasoline prices. They’re right, but not in the way they want you to think! They also spend a lot of time pointing at the oil companies and accusing them of gouging.
Let’s consider some facts, however (something politicans really hate for you to do).
As Neal Boortz pointed out today (go to the link and check March 31, 2004, “Nealz Nuze archive”), gas prices are higher because of a combination of natural market forces and the interference of politicians–and, by the way, prices aren’t really higher! Here are just some of the factors he mentions:
- There is a higher demand for gas in the U.S. this year. [Market effect]
- Environmental regulations cause artificial shortages. Shortages drive prices up. [Government meddling]
- There is an unexpected high demand for oil in China. [Market effect]
- In the early 1980s a gallon of gasoline cost about $2.90 in today’s dollars. The politicians know perfectly well about the effects of inflation and how to figure it in–they just only do so when it suits their purpose. Inflation itself is mostly caused by [Government meddling].
Consider also that about 40 cents out of the cost of a gallon of gasoline in Tennessee (in our area, a gallon of gas is costing on average $1.63) comes from taxes. If they really want to lower our gasoline costs, that’s something the politicians could actually affect.
Wait, there’s more! Walter Williams points out that government colludes with organized business to artificially boost the price–and the “organized business” in this case isn’t “Big Oil”! So much for their much-vaunted claim of concern for the “average consumer”! Did we really believe them to begin with?
Once again, it doesn’t really make much difference whether we’re talking about a Democrat or a Republican. In either case, we’re talking about socialists in disguise. In either case, they want to put government in charge of all the details of our lives, and they want to blame the market and greedy businessmen for our problems, when they are the ones who really cause the problem. Don’t be fooled.