Home > Economy > Dudette…Where’s My Lower Gas Price?

Exactly two years ago today, Nancy Pelosi was campaigning for her fellow democrats, asking the American People to give her the keys to the Speaker’s Office.

During this campaign, she promised that the democrats had a “Common Sense” plan to bring down gas prices. In her April 24, 2006 letter she said:

“Democrats have a commonsense plan to help bring down skyrocketing gas prices by cracking down on price gouging, rolling back the billions of dollars in taxpayer subsidies, tax breaks and royalty relief given to big oil and gas companies, and increasing production of alternative fuels.”

Before we talk about current gas prices, lets look at her plan:

Cracking Down On Price Gouging
Governmental agencies since the Clinton Administration have been “cracking down” on price gouging. The only problem is that the have not found any so far. Currently, governmental agencies are directly responsible for about 20% of the price of a gallon of gas in the form of taxes. In some states, state mandated mixtures account for about another 20% of the price. If the government is going to crack down on price gouging, the need to start with themselves. They are the biggest profiteers in the gasoline market.

Rolling Back the Billions of Dollars in Taxpayer Subsidies, Tax Breaks and Royalty…
First off, this is not a bad idea. Government subsidies to anyone are not good, whether it be in the form of welfare, “free medical care” or subsidies to major corporations. But that is beside the point.

Would anyone like to tell me how this is going to lower the price of gas? If anything, it is going to increase the cost of gasoline. But then again, it doesn’t need to mean anything…just needs to sound nice. We learned that from Barack Obama.

Increasing Production of Alternative Fuels
Two years now….where are they?

Now on to her promise. As I said, it has been two years since she made that promise and lets have a look at where gas prices have gone.

During the period between 2001 and the time the democrats took control of congress, gas prices increased by an average $0.84. That’s 84 cents in six years. Since Pelosi and her democrat ilk took control, gas prices have risen to an all time high, rising by an average $1.24 per gallon. That’s the largest two year gain in the history of gas prices.

Now the Republicans are calling on Pelosi to roll out her plan and she is silent.

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3 Comments, RSS

  • Otto - American Interests

    says on:
    April 27, 2008 at 9:44 am

    Useless talk, before ousting our conservative Government in Australia, Kevin Rudd made out that he had a silver bullet for all our problems of which gas prices was one. Now nearly six months into office prices are souring, $1.52 per liter as I write, equivalent to $5.87 per U.S. gallon and still on the rise.

  • Norski

    says on:
    April 28, 2008 at 8:43 am

    Thanks for a pretty good overview on why I get queasy each time I pass a gas station.

    The last point is, I think, perhaps the most interesting. Cost of raw material for gasoline went up. Cost of gasoline goes up. I’m no economist, but there does seem to be a connection.

    As to the “price gouging” – I could be wrong about this, but that charge sounds rather like an appeal to class struggle: the masses vs. Big Oil.

  • Conservative Hawk

    says on:
    April 28, 2008 at 9:04 am

    Norski,

    Thank you for your comment. Yes, when the cost of materials goes up, so does the cost of the gas. But in the U.S., we expect businesses to operate at a deficit as we vilify anyone making a profit.

    On the price gouging…yes. That is exactly what it is. Another liberal attack to foster more class envy.

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